10 Alarming Things about the Economy that Politicians Won’t Tell You
The comments below are an edited and abridged synopsis of an article by Brett Arends
It’s fascinating what you can find out if you just read official documents, especially some of the fine print.
Here are 10 remarkable forecasts and assumptions that Washington is making and isn’t telling you. These are all contained in the Congressional Budget Office’s most recent Long-Term Budget Outlook, the cornerstone document of government financial and economic planning.
- Expect many more immigrants.
- Expect many more illegal immigrants.
- Expect much more debt.
- The US will owe so much that by 2049, the annual interest on the debt will be about 5% of GDP.
- This debt, and deficits, will damage the economy.
- Social Security, Medicare, other health programs and net interest will soak up so much of the budget that everything else will have to be slashed.
- Just to keep the federal deficit to these levels, taxes will go up.
- There will be no more tax cuts.
- While tax rates will go up for most, they won’t for those earning the most.
- Working people will be taxed at twice the marginal rate of those who live on dividends. By 2049, labour income will be taxed at a marginal rate of 32%, compared to 16% for capital income.