Liberty on Tap since 1984
I wrote earlier this year about the mounting US Debt when we crossed the $13 Trillion Mark. At the time of this writing, our National Debt has Increased to $13.4 Trillion.
This total does not include the unfunded liabilities of Social Security and Medicare to name a few. This time, I am taking a different approach and would like to share this with you.
For simplicity, let's assume that an individual makes $1 Million Dollars per Day (Yes, Per Day) and pays 34% in Federal & State Income Taxes. This would leave the individual with Net Income after Taxes of $240,900,000 Per Year. If this individual were able to apply for a Loan with an Interest Rate of 0%, it would take 55,654 YEARS to fully pay the loan. Please see the attached PDF File for the details of this transaction.
This is astronomical to me! To put it in another perspective, this is a total of 20,313,623 Days with an Income of $1,000,000 Per Day!
I do not know what it will take for us to "wake up" and discover that we cannot continue at such a pace with our Budget Deficits. I am a Firm Believer that raising taxes is NOT the Solution. I have been a Chief Financial Officer for twenty-one (21) years and I have seen how individuals and businesses respond to tax increases. There comes a point when the "People being Taxed" decide to stop investing in their businesses, not working those extra hours, and other productive activities due to the "tax bite" being so severe.
I hope this sheds some light on what is happening in Washington and We Will Ultimately be Responsible to Pay the Bill.