The harsh truth is your nation is bankrupt. America has mortgaged its future and has sought to delay paying the bill for as long as possible. Unfortunately, a combination of poor monetary and fiscal policies, coupled with an entitlement-crazed generation, has led our nation to the precipice of disaster. And the fruit of this noxious combination will be tasted in just a few short years.
If all this sounds like it is going to cost the U.S. government a lot of money, you would be wrong. The enormous bill created by this entitlement crisis is going to fall squarely upon U.S. taxpayers.
Many citizens are now aware that America has an unprecedented total national debt of over $12 trillion. But you may be shocked to learn that this amount does not reflect what the federal government has promised to pay millions of Americans in entitlement benefits down the road. Those future obligations put our real debt figure at over $100 trillion – a staggering sum that is roughly twice as large as the total household net worth of the entire United States.
Ironically, America's failed entitlement programs, created by politicians under the guise of aiding our nation's citizens, will instead impoverish our children and grandchildren. While our leaders in Washington continue blindly down the path of excessive spending, they are adding astronomical debt loads to America's economic burden. As the various entitlement systems collapse, big government's answer will be predictable: massive tax hikes and more money printing. History is merciful in telling us where this will lead.
So what are you doing to protect yourself and your family from the greatest debtor nation in world history?
America’s economy is a mess. United States President Barack Obama’s budget would:
• Permanently expand the size of federal government spending by 3 percent of gross domestic product over 2007 levels;
• Double the national debt to over US$18 trillion;
• Borrow 42 cents for each dollar spent in 2010; and
• Place an additional debt of US$74,000 per household. This money will never be repaid in the current generation. The debt will be passed on the succeeding generations to pay.
To finance this continued increase in spending, the federal government is going to have to bring in new sources of revenue. Unfortunately the “revenue well” is almost dry. The total per capita tax burden born by Americans is rising to the high-est level in history. The total taxes paid by an average American household will exceed US$16,000 in 2010. Corporate tax rates are at 35%.
One idea for revenue that was first proposed in the 1950s and has come back for consideration is the Value Added Tax (VAT). When it was first introduced in Europe, it was directed at large businesses; it was extended over time to include all business sectors. In France, it is the most important source of state finance, accounting for nearly 50% of state revenues.
The VAT is similar to a sales tax except that it is a tax that is levied at each stage of production. A sales tax is levied only when it is sold to the ultimate consumer. The advantage of a VAT is that it is a “hidden tax” that is not readily apparent to the consumer. The less visible a tax, the more tax revenue can be collected without complaints from the voters.
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The harsh truth is your nation is bankrupt. America has mortgaged its future and has sought to delay paying the bill for as long as possible. Unfortunately, a combination of poor monetary and fiscal policies, coupled with an entitlement-crazed generation, has led our nation to the precipice of disaster. And the fruit of this noxious combination will be tasted in just a few short years.
If all this sounds like it is going to cost the U.S. government a lot of money, you would be wrong.
The enormous bill created by this entitlement crisis is going to fall squarely upon U.S. taxpayers.
Many citizens are now aware that America has an unprecedented total national debt of over $12 trillion. But you may be shocked to learn that this amount does not reflect what the federal government has promised to pay millions of Americans in entitlement benefits down the road. Those future obligations put our real debt figure at over $100 trillion – a staggering sum that is roughly twice as large as the total household net worth of the entire United States.
Ironically, America's failed entitlement programs, created by politicians under the guise of aiding our nation's citizens, will instead impoverish our children and grandchildren. While our leaders in Washington continue blindly down the path of excessive spending, they are adding astronomical debt loads to America's economic burden. As the various entitlement systems collapse, big government's answer will be predictable: massive tax hikes and more money printing. History is merciful in telling us where this will lead.
So what are you doing to protect yourself and your family from the greatest debtor nation in world history?
The Value Added Tax
America’s economy is a mess. United States President Barack Obama’s budget would:
• Permanently expand the size of federal government spending by 3 percent of gross domestic product over 2007 levels;
• Double the national debt to over US$18 trillion;
• Borrow 42 cents for each dollar spent in 2010; and
• Place an additional debt of US$74,000 per household. This money will never be repaid in the current generation. The debt will be passed on the succeeding generations to pay.
To finance this continued increase in spending, the federal government is going to have to bring in new sources of revenue. Unfortunately the “revenue well” is almost dry. The total per capita tax burden born by Americans is rising to the high-est level in history. The total taxes paid by an average American household will exceed US$16,000 in 2010. Corporate tax rates are at 35%.
One idea for revenue that was first proposed in the 1950s and has come back for consideration is the Value Added Tax (VAT). When it was first introduced in Europe, it was directed at large businesses; it was extended over time to include all business sectors. In France, it is the most important source of state finance, accounting for nearly 50% of state revenues.
The VAT is similar to a sales tax except that it is a tax that is levied at each stage of production. A sales tax is levied only when it is sold to the ultimate consumer. The advantage of a VAT is that it is a “hidden tax” that is not readily apparent to the consumer. The less visible a tax, the more tax revenue can be collected without complaints from the voters.
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