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View Full Version : General Politics Taxpayers on the hook for an extra $55,000 per household due to increased spending


mlyonsd
05-29-2009, 07:30 AM
<TABLE id=topTools cellSpacing=0 cellPadding=0 border=0><TBODY><TR><TD>Leap in U.S. debt hits taxpayers with 12% more red ink </TD></TR></TBODY></TABLE>
By Dennis Cauchon, USA TODAY

Taxpayers are on the hook for an extra $55,000 a household to cover rising federal commitments made just in the past year for retirement benefits, the national debt and other government promises, a USA TODAY analysis shows.

The 12% rise in red ink in 2008 stems from an explosion of federal borrowing during the recession, plus an aging population driving up the costs of Medicare and Social Security.

That's the biggest leap in the long-term burden on taxpayers since a Medicare prescription drug benefit was added in 2003.

The latest increase raises federal obligations to a record $546,668 per household in 2008, according to the USA TODAY analysis. That's quadruple what the average U.S. household owes for all mortgages, car loans, credit cards and other debt combined.

"We have a huge implicit mortgage on every household in America — except, unlike a real mortgage, it's not backed up by a house," says David Walker, former U.S. comptroller general, the government's top auditor.


USA TODAY used federal data to compute all government liabilities, from Treasury bonds to Medicare to military pensions.

Bottom line: The government took on $6.8 trillion in new obligations in 2008, pushing the total owed to a record $63.8 trillion.

The numbers measure what's needed today — set aside in a lump sum, earning interest — to pay benefits that won't be covered by future taxes.

Congress can reduce or increase the burden by changing laws that determine taxes and benefits for programs such as Medicare and Social Security.

<KWD href="http://content.usatoday.com/topics/topic/Organizations/Political+Bodies/United+States+House+of+Representatives">Rep</KWD>. Jim Cooper, D-Tenn., says exploding debt has focused attention on the government's financial challenges. "More and more, people are worried about our fiscal future," he says.

Key federal obligations:
• Social Security. It will grow by 1 million to 2 million beneficiaries a year from 2008 through 2032, up from 500,000 a year in the 1990s, its actuaries say. Average benefit: $12,089 in 2008.
• Medicare. More than 1 million a year will enroll starting in 2011 when the first <KWD href="http://content.usatoday.com/topics/topic/Baby+boomer">Baby Boomer</KWD> turns 65. Average 2008 benefit: $11,018.
•Retirement programs. Congress has not set aside money to pay military and civil servant pensions or health care for retirees. These unfunded obligations have increased an average of $300 billion a year since 2003 and now stand at $5.3 trillion.

http://www.usatoday.com/news/washington/2009-05-28-debt_N.htm

And this is just from 2008. I wonder what this number will look like for 2009 and beyond.

The government spending us into this hole is indefensible. Some day the taxpayers will wake up and I want to be there to help drag congressmen out of the capitol one by one for the tar and feathers.

The voting electorate is so stupid.

BucEyedPea
05-29-2009, 07:35 AM
And gas is going up which is related to the dollar weakening again after a period of some strength returning. That's related to Obama's spending. All debt and deficits are caused by excessive govt spending which is paid for by flooding the markets with printed dollars cheapening the money to bail out debtors—the main one being the govt.

So much for doing things in the public's interest....it's in the politicians ( and bankers) interests.

I would note that China was still willing to buy our debt under Bush but this has slowed to a trickle because of the new gov'ts exponential increase in spending.

Amnorix
05-29-2009, 07:53 AM
:Lin:

blaise
05-29-2009, 12:30 PM
hope

Garcia Bronco
05-29-2009, 12:32 PM
hope

LEft me with little to no change. (jingle)

jjjayb
05-29-2009, 12:38 PM
Nationalized healthcare will save us from this recession. At least that's what it said on a commercial I saw a few days ago. :shake:

Calcountry
05-29-2009, 12:39 PM
hopeChange.


How many of you fools thought that the "bridge loan" that Bush gave GM back around Christmas was the end of this. Where did that money go?

If your outflow is more than your income then your upkeep will be your downfall. True statement. True for GM, true for kahleee4444knee ah, true for Barack Hussein.

Donger
05-29-2009, 12:43 PM
I think you left off a zero, actually. That makes it a little worse.

blaise
05-29-2009, 12:51 PM
I'm going to pay my taxes with hope.

Stewie
05-29-2009, 01:15 PM
The bond vigilantes are out in force. They're pissed at the lack of fiscal restraint by this administration and are pounding down bonds. It's all part of the plan.

mlyonsd
05-29-2009, 01:27 PM
I think you left off a zero, actually. That makes it a little worse.

That $55,000 is just what it jumped per household in one year....2008. And that number is probably based on all households, not just the ones that pay income tax.

That boggles my mind.

KC native
05-29-2009, 01:36 PM
That $55,000 is just what it jumped per household in one year....2008. And that number is probably based on all households, not just the ones that pay income tax.

That boggles my mind.

It also assumes that the US government will have to actually fund all of those commitments which probably isn't realistic. It's a big number but it's not likely to mirror actual experiences.

Donger
05-29-2009, 01:38 PM
That $55,000 is just what it jumped per household in one year....2008. And that number is probably based on all households, not just the ones that pay income tax.

That boggles my mind.

You're right. I see that now. At least I own a part of GM now, though. That's awesome.

DJ's left nut
05-29-2009, 01:44 PM
The good news is that we've had a fiat currency since we dropped the gold standard, so the odds of the ever really coming home to roost are fairly slight.

And hey, I've pretty much locked in all the major debt I intend to incur over the next 10 years, so inflation just makes my investments look all the wiser.....ugh.

F-it, who am I kidding? Time to buy Gold again. I hate the federal government.

***SPRAYER
05-29-2009, 01:49 PM
I may as well just run up all my credit cards and then split the country. I mean, that's what's gonna happen to me anyway.

memyselfI
05-29-2009, 01:56 PM
But, but, but Bush Lite is helping the little guy like he promised he would...

oh, wait. OOOPs.

http://www.huffingtonpost.com/2009/05/29/obamas-american-stories-f_n_208987.html