Front Page
NMJ Search
Editorials
Commentary
Archive
NMJ Radio
Constitutional Literacy
Islamofascism
Progressivism
Books
NMJ Shop
Links, Etc...
Facebook
Twitter
Site Information
About Us
Contact Us
  US Senate
  US House
  Anti-Google






Much of the grim picture is the result of the tax deal Mr. Obama and Congress struck at the beginning of this year, which let payroll tax rates rise across the board and saw income tax rates rise for the wealthiest, but permanently lowered the income rates on most Americans.
Social Bookmarking
Print this page.
Social Security Fix Would Require Big Tax Increase
The Washington Times
Preserving Social Security for the next 75 years without reducing any projected benefits would require an immediate and permanent 3.4 percent payroll tax increase, the Congressional Budget Office said Tuesday in a new report looking at long-term budget challenges that shows there are no easy options left.

The new CBO projections show that spending is on pace to be 26.2 percent of the economy in 25 years -- up from about 21 percent now -- and powered by a sharp rise in expected interest rates.

In the short term, the picture is somewhat better. Deficits will bottom out at $378 billion in 2015, as long as Congress and President Obama leave this year's spending cuts and tax increases in place. But they will begin to rise again after that.

Much of the grim picture is the result of the tax deal Mr. Obama and Congress struck at the beginning of this year, which let payroll tax rates rise across the board and saw income tax rates rise for the wealthiest, but permanently lowered the income rates on most Americans.

That changed projections dramatically, the CBO said: Debt, which just last year was projected to drop to 52 percent of gross domestic product over 25 years, now will be 100 percent of GDP in 2038 -- nearly twice what it was supposed to be.

"Under the extended baseline, budget deficits would rise steadily and, by 2038, would push federal debt held by the public close to the percentage of GDP seen just after World War II -- even without factoring in the harm that growing debt would cause to the economy," the CBO said.

The agency, which is the non-partisan scorekeeper for the government, said that, under current law, tax rates are already projected to rise to 19.7 percent of GDP, which is significantly above the historical average of recent decades.

In 2013, taxes will be about 17 percent of GDP while spending will be 20.8 percent of GDP, leaving a deficit nearly 4 percent of the size of the economy, or somewhere near $650 billion.

By 2023 spending will have grown to 21.8 percent of GDP while taxes will have risen to 18.5 percent, shrinking deficits slightly. But over the following 15 years, even as taxes rise to 19.7 percent of the economy, spending will grow much faster, reaching a stunning 26.2 percent of GDP

READ FULL SOURCE ARTICLE: 09/17/2013

Editor's Note: That's because Ponzi schemes never - never - work. Read up on how Roosevelt wanted Social Security to actually become a privatized annuity in the legislation's original form. Then the fiscal reprobates in Congress realized they could put that money into a "fund" - or as Al Gore would say, "a lock box" - and borrow against it until the fund was nothing but a stack of IOUs...








The BasicsProject.org informational and educational pamphlet series is now available for Kindle and iPad. Click here to find out more...

The New Media Journal and BasicsProject.org are not funded by outside sources. We exist exclusively on tax deductible donations from our readers and contributors.
Please make a sustaining donation today.







Opinions expressed by contributing writers are expressly their own and may or may not represent the opinions of NewMediaJournal.us, its editorial staff, board or organization.  Reprint inquiries should be directed to the author of the article. Contact the editor for a link request to NewMediaJournal.us.  NewMediaJournal.us is not affiliated with any mainstream media organizations.  NewMediaJournal.us is not supported by any political organization.  Responsibility for the accuracy of cited content is expressly that of the contributing author. All original content offered by NewMediaJournal.us is copyrighted. NewMediaJournal.us supports BasicsProject.org and its goal: the liberation of the American voter from partisan politics and special interests in government through the primary-source, fact-based education of the American people.

FAIR USE NOTICE: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance a more in-depth understanding of critical issues facing the world. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 USC Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to:http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.


The Media Journal.us © 1998-2014    Content Copyright © Individual authors
Powered by ExpressionEngine 1.70 and M3Server