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To: KantianBurke

That chart says our revenues will be the same 40 years from now as they are today. What we don’t plant to grow at all?


22 posted on 08/31/2012 11:47:04 AM PDT by DannyTN
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To: DannyTN
That chart says our revenues will be the same 40 years from now as they are today.

No, it doesn't. It shows a flat-line extrapolation of the historical 18% average of past tax revenues expressed as a percentage of GDP. You've got to see that it's a PERCENTAGE scale, which means it's 18% of whatever the GDP may grow to be, which figure is extrapolated from past data, as well, to get the 24% of GDP data point for the sum of the entitlements shown.

The only ways out of the dead-end involve repeal WITHOUT REPLACEMENT of "Obamacare," four decades of GDP growth at more than double the historical average, or some combination of both.

I'll leave it as an exercise to figure out which of the two elements we should most rely on to get the job done.

32 posted on 08/31/2012 12:33:56 PM PDT by HKMk23 (GOPe 2012: MITT HAPPENS)
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To: DannyTN

Wrong. That chart indicates what will happen if our taxes don’t go up to pay for said entitlements.


36 posted on 08/31/2012 1:22:26 PM PDT by KantianBurke (Where was the Tea Party when Dubya was spending like a drunken sailor?)
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To: DannyTN

No, the charge is based on GDP.

The thing to realize is that, in the long term (over decades since WWII), the average tax revenues the federal government can and does collect are about 18.mumble%. If the Feds can collect more, it’s only for a few years.

That chart shows the projected growth of those welfare programs vs. expected GDP (and therefore, projected 18% of GDP) for decades into the future. Typical CBO projections of GDP growth are about 2.4% per annum, so run those out into the future, put the tax revenues at about 18% of the GDP for that year and then project the expenses...

And you get a chart like that one up above.


98 posted on 09/01/2012 2:56:44 PM PDT by NVDave
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