ON-Lion Letter
"When it comes to nondisclosure, the United States government is the father of all financial malfeasants," according to Boston University economics professor Laurence J. Kotlikoff in a late-January Brief Analysis from the National Center for Policy Analysis (NCPA) in Dallas.  "Indeed, Uncle Sam has been misrepresenting the nation's finances for decades.  In the process, he has run up an undisclosed bill that makes the financial bailout and economic stimulus spending look paltry."

Kotlikoff is also a senior fellow of NCPA, which is substantially supported by Milwaukee's Lynde and Harry Bradley Foundation.  The analysis, "Is Uncle Sam Bankrupt?," is adapted from his forthcoming book, Jimmy Stewart Is Dead:  Ending the World's Ongoing Financial Plague with Limited Purpose Banking.

"Taking into consideration all of the government's financial liabilities and projected future tax receipts, the current fiscal gap in the United States is estimated," Kotlikoff writes, to actually be "$77 trillion -- more than five times the United States' present" gross domestic product.  "In order to close a gap of this size, the Federal Insurance Contribution Act (FICA) payroll tax -- currently 15.3 percent -- would need to be more than doubled immediately and permanently.

"[T]he country is broke," his analysis concludes.  "The United States is currently short more than $77 trillion and this figure will only increase.  In fact, it is estimated that the total gap will amount to nearly $80 trillion in 2010.  The United States government, through its various financial agencies, is assuming away the country's fiscal problems rather than confronting and correcting them.  Without dramatic and immediate changes in policy, future generations are likely to face lifetime net tax rates that are twice those imposed now."
Actions: E-mail | Permalink |