If you raise taxes to collect 12% of the deficit (which probably end up being less) and if you cut spending by 12% of the deficit (which will probably end up being less), you still end up with deficits of over $800 billion every years. Over ten years, that’s $8 trillion more on the national debt. So by 2022, you have a debt of $23 trillion. That’s $230 billion for every 1% of interest (who knows what rates will be by then?) 2% interest on the debt would be half a trillion dollars. 4% would be a $trillion in interest alone. If the economy grows at an average of 2.25% every year, it would be about $19 trillion. Interest ($1 trillion) would consume over 5% of GDP. A lot of ifs. Just saying.
The United States is the ONLY country that taxes American citizens even if they have never lived in the United States at any time. Once born American, you owe taxes as an economic slave even when you receive nothing and have never lived in the USA. This law passed last December that authorizes the confiscation of any firm’s assets if they do not report what an American citizen does overseas has been devastating. Americans have been thrown out of banks everywhere. In Switzerland, you have to fill out papers to open and account swearing you are not an American citizen even if you are Swiss. Americans are being thrown out of public funds and just about everything anywhere right down to safety deposit boxes. The balance of trade will continue to collapse as foreign goods can be sold to Americans but Americans cannot open businesses overseas unless you are part of the big multinational corporations. This alone has sent the velocity of money spiraling downward. However, what is going on now is just off the wall.
The US government is now hunting down people who may have had one parent as an American yet they have lived outside the USA all their lives. The IRS has been hunting lineage of Canadians who had one American parent and are sending them letters informing them that by US law they should have been paying taxes their whole life to America in addition to Canada. This is sending countless Canadians running for lawyers all because the USA is broke.
How Americans are being treated by their own country is not as a free individual, but as economic property to pay revenue to the government regardless of where they live. NO OTHER NATION DOES THIS BUT THE USA. We are in such serious trouble with this Sovereign Debt Crisis that all liberty is being lost. Virtually every other major nation does not tax worldwide income if earned outside the country under the simple theory you pay taxes to use state services. If you are not there, you do not pay. American are owned by the government no different than the days of slavery. If your parents were slaves, you were the moment you were born. We perhaps ended private ownership of people, but we did not end state ownership of people. You must work and pay taxes and it has nothing to do with paying your “fair share” since there is nothing owed to a citizen by the state.
The desperate need for revenue to pay the bond holders has destroyed everything the constitution was intended to secure.
http://www.zerohedge.com/news/2012-12-16/us-killing-global-economy