22 Reasons Why Obama will Raise US Taxes

Posted: 2009/05/21 in Economy, Geopolitics
Tags: , , , ,

For Americans looking for change, they are about to feel it, after they of course wake up from denial. Debt may actually be the reason for the American Dream demise:America’s debt now exceeds the $50 trillion GDP of all economies in the entire world!

Paul B. Ferrell of Marketwatch laid down an updated list from what he did last year. We all know that whoever gets elected there is a massive debt that will be inherited from Bush. Obama adds another $1.84 Trillion with the current mortgages which is “four times Bush’s record deficit last year, with deficits over $500 billion annually for the next decade.”:

1. Federal budget deficits/debt

Federal debt is now $11.5 trillion. Add $1.4 trillion this year. That’s almost 100% of GDP.

2. Social Security unfunded debt

No longer a political “third rail,” we have no choice: We must raise taxes, or cut benefits.

3. Medicare unfunded obligations

Unfunded after 2016, $65 trillion by 2041, consuming 100% of tax revenues by 2075.

4. Health care insurance liabilities

Costs rising at double the inflation rate, 47 million uninsured. Obama plans universal coverage of this mega-$2.5 trillion business. Can we trust insurers sudden offer to help?

5. Military/defense budget costs

Budget $662 billion. Add veterans affairs, Afghan, Iraq: $1.45 trillion 55% of budget.

6. Homeland insecurity risks

Ports, chemical plants, borders at risk. Black Swans are lurking; with unpredictable mega-buck consequences.

7. Real estate/mortgage losses

Global real estate from $40 trillion to $70 trillion in 5 years. Total global wealth lost since 2007, $50 trillion. U.S. mortgages shot from $7 trillion to $14 trillion in 8 years, now down $6 trillion, with 20% of homes worth less than the mortgage.

8. Peak oil and energy alternatives

Oil’s soon declining. Extraction costs will exceed sale price. Nuclear energy cost: $75 trillion. Coal’s dirty. Wind, biofuels: costly.

9. Cap and trade

Taxing fossil-fuel emissions will increase energy costs. But it won’t change much. China won’t stop. So population grows, with demand and global warming.

Read more…

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