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It's Later Than You Think (part 2):
The Pain in Spain MAP-21 When Will the Loophole be Closed The Usual Suspects Profit ... And Jobs Suffer Employment: Hello McKiosk Financial: Off Target Bigger Picture: Is Christianity Torture? The Cost of Free Education Up in Smoke Class Credit US is #1 ... and What We Reward is... The Tax Foundation (link) published its Tax Freedom Day® last month.
This year it's April 21st (three days later than last year). When including federal borrowing, the day becomes May 6th. If you've read The Financial State of the Union (link), you already know that there are issues with just accepting certain government statistics at face value. The most subjective number included in The Financial State of the Union is the amount of the federal unfunded liabilities. The Tax Foundation does not include this in their calculation. So when does the Government no longer need to tax us to keep from going further in debt? What day is Government Freedom Day? Based on the most optimistic estimate of the unfunded liabilities, that date would be April 27th. Using more realistic numbers, that date becomes September 20th. So you're thinking - four months is bad enough, but almost nine months before we are free? No, no, no! You misunderstand. Government Freedom Day 2014 occurs somewhere between April 27th and September 20th of 2015!!! There is no such thing as "Government Freedom Day" - we are perpetual slaves to government, at least up to the point that the house of cards collapses. Only through the magic of borrowing and printing has the charade managed to get to this point. At some point, nobody will willingly lend us their hard earned money, and once the dollar is replaced at the global reserve currency, printing will no longer help delay the inevitable. Like the Titanic, it's only a matter of time before the dollar and our false prosperity sinks into the abyss. At our expense, there are lifeboats for the government officials (and the minions to service them), but we are on our own. We cannot stop the ship from sinking, but we can build our own lifeboats. We may have to give up some luxuries and live more like our ancestors did, but the alternative is to go down with the ship (or in this case, the global supply chain). Government will not be able to take care of you (or if it does it will be in some kind of communistic / police state sort of way). Will you do what is necessary to protect you and your loved ones? You will need to be able to raise your own food, have access to water (and be able to make it drinkable), have shelter that doesn't rely on electricity or petroleum to be liveable (which also means an alternative to the sewer system), and neighbors that are taking similar steps. That latter one is really tough. When is Government Freedom Day? It's the day that you have that self-sufficient community. The sooner you start, the sooner that day will come. John Ragan "Your Captain" thefinancialstateoftheunion.com Permission is granted to republish this post in full including the links. Methodology: Income is based on IRS tax stats. Allowing for some growth, total business and personal gross income reported to the IRS is about $10 trillion (detailed in The Financial State of the Union Book 1). The usdebtclock.org website estimates federal, state, and local government spending at $6.2 trillion. The unfunded liabilities (Social Security, Medicare, and Medicaid - not including Obamacare or public and private pensions) have been increasing between $7 trillion a year (The Financial Report of the United States) and $11 trillion a year (CBO alternative fiscal scenario / Professor Kotlikoff). This puts total government needs between $13.2 and $17.2 trillion a year on a $10 trillion income (if ALL reported income were taxed at 100% with no deductions or exclusions). This leaves between $3.2 and $7.2 trillion to come from 2015 income which translates into 32% to 72% of the year. These days are April 27th and September 20th. Even if you ignore the unfunded liabilities, that $6.2 trillion translates to August 15th 2014. Seven and a half months of our income just to pay for current government expenses. Arguments can be made about different estimates of income, expenses, and unfunded liability increases from other sources which would result in a different "freedom day". The actual day doesn't matter. What does matter is that our income can't cover the cost of government. The situation becomes worse when including interest (only) on our $40 trillion in private (business and personal) debt (our total debt including all levels of government is over $61 trillion). It's Later Than You Think:
It Knows Your Overseer Tax Your Miles Not Just the US The Pain in Spain MAP-21 When Will the Loophole be Closed The Usual Suspects Profit ... And Jobs Suffer Government Freedom Day: The Real Freedom Day Tax Foundation Employment: Hello McKiosk Health: 1+1 = 100 Just a Half Hour a Day... Study Link Bigger Picture: Is Christianity Torture? The Cost of Free Education Financial:
There is no Retirement Employment: More Kiosks - Less Jobs Spy Tech: Fully Integrated Fukushima: Fukushima Found in Europe Meltdowns and Melt-Outs 10,000 Year Accident Health: The Secret... Preparedness: EMP Gets Heard Take two aspirin and... Bigger Picture: Alien DNA It Pays to be Moody Woman Giddy Over Murdering Baby - Video Link |
AuthorJohn R. Ragan, Captain, USAFR (Ret), MBA, MS - your guide on our journey through The Financial State of the Union Archives
June 2020
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