Fixing Social Security and Medicare

Percentage Increases in Taxation or Cuts in Expenditure Required Today to Acheive Generational Balance in U.S. Fiscal Policy

1. Increase federal income taxes                 + 69%

2. Increase payroll taxes                                 + 95%

3. Cut federal purchases                                   – 100%

4. Cut Social Security and Medicare            – 56%

 

Source: Gokhale (Federal Reserve) and Smetters (U.S. Treasury)  2003

Quoted in: Colossus, by Niall Ferguson

 

 

Advertisements

One Response

  1. What’s the time frame, Tom? What is generational balance? We could wipe out debt by raising taxes 5 quadrillion percent and be balanced by this Fourth of July but American civilization as we know it would end. Or we could just stop spending ANY money from the government until the debt was gone.. same effect. This is the kind of simplistic statistical sound bite that can only survive in a world where ideology trumps practicality (and human nature).

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: