This page has been archived and commenting is disabled.
The Only Certainty in Life: Taxes are Rising
If you are looking for irrefutable proof that we’re all screwed, take a look at the chart below from my friends at Clusterstock. It shows that $2,000 in tax increases will be needed per household to cover increased government social service spending by 2015. This figure then soars to a mind blowing $12,636 by 2050, by which time I will hopefully be dead.
We are now paying the piper for 30 years of tax cuts and spending increases at the state, federal, and municipal levels, and there is absolutely no way to avoid this. The unwind could take 30 years.
Personally, I am an optimist, thinking it will only take 20 years. I will probably be dead by then too. I have given up any hope of ever collecting social security, even though I qualify in a few years.
You can’t blame any one political party for this sorry state of affairs. It has been a tag team effort to get the accumulated federal budget deficit up to $13,119,120,115,616 as of 3:00 PM EST today, although Republicans have historically been the big spenders with their defense appropriations. Remember Ronald Reagan’s’ star wars and the 600 ship navy? Star wars never worked, and the ships are now mostly rusting in mothballs.
Yes, I know we had to outspend the Ruskies into oblivion to win the cold war. But we did it all on an American Express card, and have been rolling over the balance ever since. If we don’t surrender our credit cards now, the bond markets will eventually take them away and cut them in half in front of our disappointed faces.
I believe that the winner of elections from now on is basically irrelevant, as our problems have grown to the point of insolvability. Cut taxes? The deficit soars. Cut spending? We go back into a depression. Do nothing? The deficit soars and we go back into a depression.
My solution? Make as much money for myself with the ideas you find in these pages, and let the world sort itself out. The great certainty in this life is that your taxes are going up, no matter who is in charge. There! I’ve had my rant. Have a nice day.
To see the data, charts, and graphs that support this research piece, as well as more iconoclastic and out-of-consensus analysis, please visit me at www.madhedgefundtrader.com . There, you will find the conventional wisdom mercilessly flailed and tortured daily, and my last two and a half years of research reports available for free. You can also listen to me on Hedge Fund Radio by clicking on “This Week on Hedge Fund Radio” in the upper right corner of my home page.
- advertisements -
If you think people defaulting on their mortgages (when able to pay) is bad, wait 'til you see them put up the finger against paying their new taxes.
The rule of law will collapse, be interesting to see what they do against us all then.
Corporate taxes are a joke. They're only paid by the "little businesses." How much has BP, Exxon, Pfizer, or Merck paid over the past ten years?
and death. that includes Very Important People, too. Suddenly I feel like your short position in Treasuries is lookin' "MIGHTY FINE." Don't tell me you closed it out?
A penny saved is a penny earned. Consume as little as possible. Buy all of your big ticket items that need to be replaced NOW! Recycle everything. Cut, cut, cut. Austerity. Welcome to the new normal, enjoy your stay. I will see heaven way before a Scocial Security check. Get your personal priorities straight.
Nobody will be refused a monthly SS check. The good news is each check will be for 100 trillion dollars. The bad news is a loaf of bread will cost 200 trillion dollars. The worse news is it will cost 300 trillion in taxes to have it mailed to you, so they'll just keep it and call it a "tax break".
But hey, at least we had some laughs.
Already in play, a friend's home was taxed at $5k last year and just got the new bill (home value the same) and taxes are now $6.5k.
There is a solution....
15% consumption tax ...replaces the individual and corporate income tax...
The least understood point is that the tax take from a consumption only tax would dwarf the current progressive structure....
And would create labor shortages in the US....
......................................
Cannot be an add on....has to replace...
.......................................
The US govt. wants to eat more apples while cutting down the orchard...This does not work...Must plant more trees and expand the orchard....
The next step is to make common stocks Retail favored...This will create the much needed economic numbers....
Another certainty in life: the quality of the posts by certain posters.
Taxes, we don't need no stinking taxes. Who can pay taxes if no one has any money? It's all over. "make as much money for myself" is dead on. Then hide it.
VAT for the USA!!!
Who needs consumer spending to boost GDP?
STIMULUS BABY!!!!!
My solution? Make as much money for myself with the ideas you find in these pages, and let the world sort itself out.
second the motion
That seems like a good idea to me, but then I never worry if anything scales. I wonder if everybody behaved under the assumption that no one else would behave that way....
Using the phrase Kool-Aid has jumped the shark.
You screwed the pooch when you let the cat out of the bag.
D'oh!
Good piece. Please give some of your Doom-Aid to Leo Kolivakis, he needs an antidote to his Kool-Aid.
your math is off. it will be far more than $2,000 per head once you factor in state-level issues