After watching Nancy Pelosi on Sunday, Jonathan Chait speculates that she just might:
A stunning table by healthcare economist John Goodman:
Goodman then explains why the twentysomethings take the hit:
No money has been saved. No investments have been made. No cash has been stashed away in bank vaults. Today’s payroll tax payments are being spent to pay medical bills for today’s retirees. And if any surplus materializes, it’s spent on other government programs. As a result, when today’s workers reach the eligibility age of 65, they will be able to get benefits only if future taxpayers pay (higher) taxes to support them.
Reihan Salam may well be correct that if Republicans don’t “compromise on curbing tax breaks, we’ll wind up with marginal tax rate increases” since a high percentage (some 72 percent according to a recent WaPo poll) of Americans seems to favor raising top tax rates. But here is how I see things:
A few thoughts:
1) Rs had every right to walk out. Dems pushing unacceptable tax hikes (including, basically, axing Bush tax cuts, along with an automatic tax trigger and a host of tax breaks done away with) with no real entitlement reform.
The Congressional Budget Office just came out with its mid-year update to its long-term budget forecast. Lots of terrifying stuff in there. But if I was only going to pull out one bit, it would be this chart showing the likely path of America’s debt-to-GDP ratio between now and 2035 assuming a) likely fiscal policies and b) massive debt would actually impact economic growth. It’s not a pretty picture: