The following chart gives you a peek into your dystopian, unfunded future. (click to enlarge)
Unfunded Entitlements ‘r’ Us
And how might we pay for such absurd obligations?
- The U.S. could fund its shortfall by doubling the 15.3 percent payroll tax on employers and employees (forever)
- Alternatively, the U.S. could reduce discretionary spending by 80%, on things like education, defense and environmental protection. Why so high? There’s not enough discretionary spending left (the OMB estimates that mandatory spending will make up 71% of government expenditures by 2016)
- Of course, the other option would be the printing press (inflation), which would be worse given how much would be needed
But wait, there's more ...
Measures of current spending do not capture the scope and size of government programs that already exist, and which will have to be paid for, although no one knows how. Richard Fisher (Dallas Fed President) likens the US entitlement burden to German attacks on the UK in the 20th century, the costs of which eventually sunk the British pound; except this time, the wounds are self- inflicted.
Oh, happy day!
Of course, Obama and pals will pick the options that hurt us the most, while at the same time, enhancing their own power.
"And how might we pay for such absurd obligations?" -asks the author......
Eight, 100,000 ton Gerald Ford-class carriers, at $12–14.5 billion each (plus $12 billion for development and research) are in the works for the U.S. Navy .....Then factor in the ship's company, along with the cost of training: 3200, and it's air wing: 2480. Remember, each air wing consists of the following: four FA-18 squadrons, one S-3 squadron, one EA-6B squadron, one E-2C squadron, and one helicopter squadron. Each F/A-18 costs $55.2 million.
This is a cost our nation cannot bear. Our carrier fleet is intended, not to protect our shores, but rather to project our power to protect overseas interests, such as Israel, Saudi Arabia, Indonesia......
Bottom line is, if we want to get serious about cutting the budget, we need not keep the pentagon's budget off the chopping block. Then a tax increase is a moot point, isn't it?