The fiscal train wreck that Obamacare and other health care entitlements will inevitably cause is quickly approaching—and no amount of tax increases can save us from the crash.
Although the “Eat the Rich” and “Tax the one percent” way of thinking is currently in vogue, these catchy sound-bites remain nothing more than pithy slogans. Not only can the “rich” not pay it off, but if Congress does not act, the rich, the middle class, and the poor together will not be able to cover the tab.
Making matters worse, taxes are scheduled to increase significantly on earners in all income brackets – hitting the poorest Americans hardest. Yet even if these draconian tax hikes come to pass, America’s vexing fiscal issues will remain.
Higher taxes in the coming years are the result of laws already on the books and will occur without any action from Congress. Because a large portion of the tax code is not indexed for inflation, more and more people will be pushed into higher brackets. This means that a greater share of people’s incomes will go to taxes, further eroding people’s purchasing power– despite nominal increases in compensation. The poor will be impacted disproportionally as fewer and fewer are eligible for the Earned Income Tax Credit. Obamacare will also pile on tax hikes on the nation’s wealthiest citizens.
Yet despite forecasts projecting the largest tax revenue stream in living memory over the next couple decades, the nonpartisan Congressional Budget Office (CBO) says we will still be unable to control the growing debt. Obamacare and other health care entitlements are literally putting a chokehold on the American economy and real change is desperately needed in order to avert complete financial catastrophe.
Last week, the CBO released their “Long-Term Budget Outlook” which showed health care entitlements are essentially driving the country to insolvency. Spending on major health care programs (which includes Medicare, Medicaid, the CHIP, and health insurance subsidies) far outpaces every other category of spending. It will even surpass the growing Social Security liability in the next couple years, despite an aging population and the impending retirement of ‘Baby Boomers’. Spending increases mandated under Obamacare will increase the share of GDP going to major health care programs by 53 percent.
Most of the jump in federal health care spending can be traced directly to Obamacare, with 62 percent of the increased costs from health care programs over the next ten years stemming from different components of the President’s law. Medicaid expansion and health insurance subsidies contribute over $1.8 trillion to the sharp rise in health care spending through 2024.
Overall, this massive surge in entitlement spending will lead to deficits and share of public debt not seen in decades. Only once before, during WWII, has our country seen comparable levels to what we will see if Congress does not act. Twenty-five years from now, when today’s preschool children are receiving college diplomas, the public’s share of the federal debt will exceed the total amount we produce, surpassing 100 percent of GDP.
All of the projected increased debt and deficits will accumulate in spite of the tax burden rising to the highest share of GDP it’s been since the nation started measuring national income.
Those on the left have repeatedly called for higher taxes on the wealthy, but the latest CBO report makes it clear that it is impossible for any amount of tax hikes to offset the massive spending increases. Even though tax revenue will rise to make up almost one-fifth of total output, all it will do is stymie potential growth and innovation—making little impact in reducing the debt.
The CBO has once again made clear the urgent need for entitlement reform and spending cuts. If nothing is done, the rich will not be the only ones asked to bear the burden – the middle class and the poor, who are less equipped to handle increased taxation, will be hit.
The economic fate of our most vulnerable friends and neighbors, our next generation, and the future of our country hinge on policymakers reforming the creaky institutions of our runaway welfare state.
Taken from Townhall.
The Nation’s $100 Billion Regulations Tab
President Obama’s pen-and-phone regulations are costing ordinary Americans hundreds of dollars every year, largely through extra costs to businesses.
What does President Obama’s “Year of Action” mean, exactly? The answer is more than $100 billion in regulatory burdens so far this year, putting the nation on track for $200 billion by year’s end. This is what “using his pen and his phone” means for countless manufacturers, energy producers, and consumers who routinely must pay the bill for costly new rules.
Behind the nation’s regulatory tab are the Department of Energy (DOE) and the Environmental Protection Agency (EPA), accounting for more than $88 billion of total costs, the vast majority of the total.
On an annualized basis for these agencies, EPA’s proposed greenhouse gas standards (GHG) easily led the way at $8.8 billion. The silver medal in costs belongs to the agency’s sulfur emissions standards for gasoline, which costs $1.5 billion annually and imposes more than 150,000 paperwork hours on refineries and automobile manufacturers. In third, DOE’s energy efficiency standards for fluorescent lamps will impose more than $860 million in annual burdens.
The DOE leads EPA in regulatory burdens this year, at $50.6 billion to $38.1 billion. This “Year of Action” has routinely dished out expensive energy efficiency standards designed to correct the irrational consumer choice of purchasing less efficient, but cheaper, products. The agency has already published six standards that impose at least $100 million in annual burdens. For perspective, in the most expensive year ever for regulation, FY 2012, DOE published only five.
Bruising the Midwest
If we tailor the $100 billion in costs to an individual level, it means that the administration added $330 per person. However, because EPA and DOE have done the majority of the regulating, these burdens do not fall equally across the nation.
The manufacturing and energy industry are primarily affected, and thus, so is the Midwest. Ohio and Pennsylvania ranked third and fourth in 2014 regulatory burdens, with more than $11.4 billion in combined costs. Michigan and Indiana are also in the top ten, with $6.3 billion in burdens between them.
On a per capita basis, the energy-rich states of Alaska, Wyoming, and Louisiana, are all in the top five. Their average per-person regulatory burden: $640, or three times Maryland’s paltry share of $209.
More Penny Pinching Ahead
This is not all we can expect in 2014. The administration has already issued 14 billion-dollar regulations in 2014, with the promise of more to come; more than a dozen major regulations await approval at the White House, including redundant rules on calorie labeling for vending machines, three more efficiency regulations, and drug pricing measures. The most expensive, and perhaps the two measures that will most affect consumers, are due at the end of 2014. A new ozone proposed rule is due in December; the last round in 2010 was estimated at upwards of $90 billion. New ozone standards are likely to affect every state in the nation and, eventually, most consumers. Finally, EPA is scheduled to finalize its controversial rule on “coal ash,” which will likely be yet another multi-billion dollar imposition on coal power plants.
Thankfully, Americans can rest assured there will technically be no tax hikes this year, but the total regulatory bill could eclipse $30 billion on an annualized basis, about what the nation witnessed from the fiscal cliff tax deal. Many economists admitted that $30 billion in additional taxes would hurt the economy, but regulatory burdens of similar scale often remain unseen.
President Obama’s “Year of Action” could betray him by finally highlighting the most expansive use of the regulatory state in decades. When Americans realize higher energy bills, food prices, and consumer goods are the result of this action, they just might demand the president dump his pen and phone for good.
The Reasons We Fight The New World Order
“Countless people … will hate the new world order … and will die protesting against it.” — H.G. Wells, The New World Order (1940)
Throughout our lives and throughout our culture, we are conditioned to rally around concepts of false division. We are led to believe that Democrats and Republicans are separate and opposing parties, yet they are actually two branches of the same political-control mechanism. We are led to believe that two nations such as the United States and Russia are geopolitical enemies, when, in fact, they are two puppet governments under the dominance of the same international financiers. Finally, we are told that the international bankers themselves are somehow separated by borders and philosophies, when the reality is all central banks answer to a singular authority: the Bank Of International Settlements (BIS).
We are regaled with stories of constant conflict and division. Yet the truth is there is only one battle that matters, only one battle that has ever mattered: the battle between those people who seek to control others and those people who simply wish to be left alone.
The “New World Order” is a concept created not in the minds of “conspiracy theorists” but in the minds of those who seek to control others. These are the self-appointed elite who fancy themselves grandly qualified to determine the destiny of every man, woman and child at the expense of individual freedom and self-determination. Such elites are often very open about their globalist intentions and ambitions, much like author H.G. Wells, a socialist member of the Fabian Society and friend to the internationalist establishment who put forth his blueprint for world governance in the book quoted above. In this article, I would like to examine the nature of our war with the elite and why their theories on social engineering are illogical, inadequate and, in many cases, malicious and destructive.
Read everything HERE.