Posted on 10/14/2017 12:24:49 PM PDT by SeekAndFind
The money that will actually pay for Social Security and Medicare down the road is going to have to come out of future taxes, just as for any other debt of the US.
The U.S. government can simply create the money out of a thin electron soup. It is what it has been doing for the last 8 years.
Theory says we should be in inflation, big time. But we are not, at least to an appreciable degree, which is where it counts.
Normal rules say: hike taxes on the people already paying taxes, and that way we can pay for stuff.
But this clearly will not work.
Okay then: Normal rules do not apply.
So watch Trump solve the problem differently.
And how much to retire the debt?
When you own the world’s reserve currency you can get away with printing money up to roughly the rate of growth of world GDP without inflation (in theory). The UK did this for decades when they printed pounds back when they had their empire.
When you own the world’s reserve currency you can get away with printing money up to roughly the rate of growth of world GDP without inflation (in theory). The UK did this for decades when they printed pounds back when they had their empire.
____________________________________________________________
It fits with what I have been observing.
And how much to retire the debt?
That kind of tax hike would kill the economy so even more would be taxed. Fact is, we cannot possibly pay down the deficit with our current spending level.
We can only pay it off by cutting spending. NOTHING in the constitution calls for welfare. Those are Taxation Without Representation.
Repubican tax planning is to grow the economy at 3-5% annually. That kind of economy—especially above 4% will throw off the taxes needed to pay down the deficit.
John Mauldin ....irrelevant since 2003.
There is no politically available choices left.
Except for bankruptcy
That would trigger a recession, and put more people on welfare.
Or rather, it would revel that a lot of government jobs ARE welfare.
The other thing is 75% or so of the people working today will not be need very soon (according to people like Musk).
Exactly.
We likely would have already gone broke if not for fracking. It was the only positive economic thing going the previous 8 years.
The US is potentially a very rich nation if we just do smart things.
>
We can only pay it off by cutting spending. NOTHING in the constitution calls for welfare. Those are Taxation Without Representation.
>
Correct, but there IS quite a few things in the Constitution that make welfare ILLEGAL: A1S8, 5th, 13th (outside of the 9th/10th for the ‘State level’ crowd)
Only ONE sentence in the whole thing worth a hill of beans: “If any normal company tried to use accounting like the US Congress does, the SEC would rightly declare it fraudulent and shut it down immediately.”
Yet, here we have “(C)” pontificating on how to make these illegal/unconstitutional programs of theft and economic servitude ‘solvent’ (though I concur *NOBODY* should pay $0%...EVER. Nobody DOESN’T utilize the govt, ever, so everyone should have skin in the game.).
Raising taxes by any extreme amount would not accomplish anything but a dead economy and higher debt.
It’s a silly concept to even talk about.
We have a spending problem, not a taxing problem.
Proposing a tax hike that would supposedly fund the deficit is no better than proposing printing enough money to fund the deficit, which is what happens anyway.
But what happens when the world decides that they no longer want to hold dollars like they have in the past?
I have been told but have not done the math, that if the Alternative Minimum tax were rewritten as “everyone pays at least 5%”, we would be be within a fraction of a percent for a balanced budget.
How about lifting the cap on SS wages .... Jimmie Dimon, Buffett, Clintons, Bezos, Cook, Soros, etc. whining about not paying enough taxes ... wait for the screeching!!!!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.