Time
Never mind about mortgaging the future. By running up a monster deficit as it struggles to keep the economy growing, the Obama Administration is setting the stage for sharply higher taxes down the road.
Of course, it's not an absolute certainty. The easier option is even more quantitative easing - a euphemism for printing money, which is a dirty phrase economists never like to use. This would devalue the country's currency and sovereign debt, triggering a cycle of hyperinflation of the likes the U.S. has never seen.
Hiking taxes is the less traumatic course, though it will only be accepted as the cost of inaction rises. "Congress only responds to financial crisis or some other external shock," says Bill Gale, co-director of the Tax Policy Center in Washington, D.C. "Nothing will be done in Obama's first term to substantially increase tax revenue." (See the top 10 bankruptcies.)
Higher taxes are coming soon, however - and they will hurt. By some estimates, the tax burden on Americans could double before the end of this decade. The only question is: What form will these new taxes take?
Full propaganda HERE
