OntheWilderSide

9 Reasons Your Taxes Are Going Up

No matter who’s elected president, the debt party’s over

Reason No. 1: “Most Americans have yet to feel any of the costs of the Iraq war,” write Nobel economist Joseph Stiglitz and Linda Bilmes in an excerpt of their new book, “The Three Trillion Dollar War,” in Vanity Fair. “The price in blood has been paid by members of the volunteer military. The price in treasure has been financed entirely by borrowing. Taxes have not been raised to pay for the war.”

Well, folks, the party’s over. Campaign rhetoric won’t hide America’s excesses, denial, incompetence and arrogance much longer. No matter who’s elected, taxes will increase to cover massive debts. Greed has driven America’s great economic engine into a “debt contagion” ditch with a recession, bear market, price inflation, and weak job and housing markets … you bet your taxes will increase.

Yes, our five-year war was totally financed by borrowing. But unfortunately, “deficit spending gives the illusion that the laws of economics can be repealed. They cannot. Americans will have to pay for the war at some point — and when they do, they will be paying not the Bush markdown but the full price,” the authors say.

We’ve been mislead by Washington’s Enron-style accounting that hides many costs:

• Supplemental financing bills, outside the budget
• No veterans health-care estimates included
• No equipment replacement costs to restore our military
• Nothing about increases in state and homeland security

The real cost isn’t $800 billion, it’s already $3 trillion. And still, it doesn’t include …

• Interest on the ever-increasing $9.3 trillion federal debt
• Damage to our credibility from a weak dollar
• Out-of-control inflation in energy
• And the brutal damage to Iraq and other Gulf states

Washington’s hiding all that from us. We were sold a war-on-the-cheap, to cost a mere $50 billion to $60 billion, to be self-financed out of oil revenues. Today we’re spending $50 billion every month! This war is already an economic disaster for America and the bill’s still coming due.

Still, we know there’s strong opposition to taxes. But can a new president change much? Certainly not with two-thirds of the budget in untouchable entitlements and interest costs. Besides, Washington’s not run by our 537 elected officials but by 35,000 lobbyists. And after the elections, all 35,537 will still be part of a conspiracy that hates change and loves to spend the $3 trillion Federal budget.

Mark my words: Taxes will (must!) be increased to recover from years of excessive spending, accumulating deficits and future earmarks. A new president may expose the problems but without Congressional restraint the taxpayers will get stuck paying “the full price.”

Frankly, since both parties are mired in narrow ideologies, it’s questionable whether either can manage a $15 trillion GDP economy. Read “Mismanagement 101,” Dan Gross’s Newsweek column: “As oil hovered near $100 a barrel, President Bush complained to OPEC about high oil prices. OPEC president Chakib Khelil responded acidly that crude’s remarkable run had nothing to do with the reluctance of Persian Gulf nations to pump oil, and everything to do with the ‘mismanagement of the U.S. economy.'” And our heavy reliance on borrowing keeps making it even more difficult for the next president.

But unfortunately, even though the party’s over, that $3 trillion war debt is just a fraction of America’s out-of-control debt which is bigger than the official $9.3 trillion federal debt. It’s reason No. 1 taxes are going up.

Here are another eight problems increasing our government’s debt and adding pressures for new tax hikes. I’m sure you can think of many others:

Filed under: US Politics, war