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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: Katelew who wrote (218361)	2/14/2007 7:03:18 AM
From: jttmab	Respond to of 281500

We have a different problem with that chart. I think I understand why the chart continues upward. It should because of the AMT. That doesn't expire. I would have expect the chart to still continue upwards if the tax reductions expire, just at a lower rate. The top line projection seems like they're including AMT and the bottom line projection seems like their not. I can't imagine taxes up in the 22% range and what that might do to the economy. And that's the rub when the baby boomers are drawing on SS and Medicare in full swing. How do you pay for it without dramatically raising taxes? Something has to break. jttmab

To: Katelew who wrote (218361)	2/14/2007 8:13:23 AM
From: jttmab	Respond to of 281500

Here's a couple more charts. Chart P-7. Spending on Three Entitlements as a Percentage of GDP, 2005-2050 In 2050, SS will be 6.4% of GDP; Medicaid, 4.0% of GDP; and Medicare, 8.6% of GDP. Right there that's 19% of GDP. That's the magic number of tax revenue as ~19% of GDP. SS seems to get most of the press as far as future liability; but Medicare is 2.2% higher. Chart P-3. Federal Spending as a Percentage of GDP Using CBO Baseline, 2000-2050 Look out at 2050 again and net interest. My eyeball says that's around 12% of GDP. Adding up mandatory programs and net interest that's 31% of GDP. [At least we get something from the mandatory programs; IMO, net interest is money flushed down the toilet.] Then look at the line where the Tax cuts are extended and that magic number of 19% of GDP shows up as revenues. The only "positive" thing you can say is: "That just can't happen. Something has to break before 2050." jttmab