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Raising Taxes during a recession? I'm pretty sure that's a horrible idea especially if your goal is creating 4,000,000 new jobs. I suppose it can be viewed as training us as the tax rates will have to be around 80% in a decade to sustain the growing list of entitlement programs.

Just take a look at these numbers on Medicare alone.

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Taking all three parts of Medicare together we owe the current generation a total of $29.2 trillion and future generations will add another $32.5 trillion to this obligation. Thus, the total Medicare debt is a staggering $61.6 trillion. Let me put this number in perspective for you. Assuming that federal income tax revenues remain at the 50 year average of 10.89 percent of the nation's gross domestic product, the present value of all future federal income tax revenues from now to eternity is $99.3 trillion so that the Medicare debt of $61.6 trillion is 62 percent of all future federal income tax receipts.
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I want to see how he is going to cut the deficit in half by 2013 when he just increased it by about 3 trillion. He will have to follow his hero FDR's plan and make taxes 100% on anything over a $100,000. That should do it.


quote:
Republican governors reacted skeptically Sunday to news that President Obama plans to halve the record budget deficits to more than a half trillion dollars by 2013, the end of the current presidential term.

Minnesota Gov. Tim Pawlenty told "FOX News Sunday" that the markets reacted badly to the $787 billion stimulus bill signed into legislation this past week -- the market is now down more than 41 percent off its mark of one year ago -- and it's only going to get worse if the president raises taxes.

Pawlenty said if voters think raising taxes will solve the deficit, he's got "hunting land for you in northern Minnesota."

South Carolina Gov. Mark Sanford, who vehemently opposed the stimulus bill, said cutting in half the annual deficit is a drop in the bucket.

"The operational deficit is a very small component of the larger deficit this country is running," he said.

An administration official, speaking on condition of anonymity, said Saturday that the president plans to cut back the annual budget deficit to $533 billion by time he ends his current term in office. That would be down from the $1.3 trillion deficit expected in fiscal year 2009.
quote:
Originally posted by Ron Pheixising:

Assuming that federal income tax revenues remain at the 50 year average of 10.89 percent of the nation's gross domestic product, the present value of all future federal income tax revenues from now to eternity is $99.3 trillion so that the Medicare debt of $61.6 trillion is 62 percent of all future federal income tax receipts.


I'm curious how you came up with a finite number for an infinite time period (eternity).

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