Investor’s Business Daily ran a story recent, Tax To The Max on a Congressional Budget Office study of the U.S. finances.What it says is that spending on Social Security, Medicare, Medicaid, and other entitlement programs is unsustainably high. The study projects tax increases of 150%, with the lowest income-tax bracket going from 10% to 25% and top rates going from 35% to 88%.
The IBD correctly notes: “Allowed to grind on without real reform, Social Security, Medicare and Medicaid will do what no invading army or cabal of terrorists has done or will ever do: bring this mighty republic to its knees. Increasing federal taxes by 150% will strangle economic growth"...
The fundamental problem is that income-transfer programs (and the interest service on the debt purchased to keep them running) are spending wealth in higher volumes than the economy can actually generate, and demand for that spending is rising faster than the economy is growing. Thus, raising tax rates is no longer a way out, if it ever was. (boldface mine--Darren)
That concerns me, and it should concern every American taxpayer.