J. Scott Applewhite, Associated Press
The U.S. government’s fiscal gap grew by $11 trillion over the past year, which is 10 times larger than the reported official deficit, according to Bloomberg.
Calculations from Laurence Kotlikoff, an economist at Boston University, and Scott Burns, a personal finance columnist, calculated the fiscal gap based on the Congressional Budget Office’s realistic long-term budget forecast.
“Last year, it was $211 trillion,” said Kotlikoff and Burns in their guest column for Bloomberg. “The $11 trillion difference — this year’s true federal deficit — is 10 times larger than the official deficit and roughly as large as the entire stock of official debt in public hands.”
The authors recommend a permanent 64 percent increase in all federal taxes, as well as a 40 percent cut to benefits like Social Security and Medicare.
“Governments, like households, can’t indefinitely spend beyond their means,” Kotlikoff and Burns said.
The two co-authored “The Clash of Generations,” a book that calls for changes in the U.S. tax, health care and Social Security systems.
- Better than a raise: The smallest thing you...
- WestJet airline video goes viral as Santa...
- Leavitt stresses importance of allies, alliances
- University of Utah Health Care's AirMed puts...
- The American Dream is still alive for 20...
- Companies make CEO changes in U.S. and Canada
- Once controversial downtown property finally...
- Randy Shumway: Why so early? Holiday spending...
- The American Dream is still alive for... 10
- System failure to blame for delayed... 9
- Leavitt stresses importance of allies,... 7
- Cedar Hills to require business... 5
- Better than a raise: The smallest thing... 5
- Healthy jobs report a good sign for... 2
- US unemployment falls to 7 pct. on 203K... 1
- Barnes & Noble shares fall on SEC probe 1