Date registered: Apr 2004
Location: The BlueGrass State
Mentioned: 0 Post(s)
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Dusking of the Age of Aquarius
Are taxes going up? You decide.
The largest single generation of people in Americaâ€™s history have turned 60. That means they [we] are just a couple of years from Social Security benefits that we have been paying into since the Sixties. It means Medicare Insurance, Medicaid for those who canâ€™t afford it. Supplemental medical insurance is only going to be used by those of us who understand its value and bought it when it was cost effective. Others will be pushed to Medicaid as medical expenses overrun savings and equity.
Medical costs continue to climb, hospitals continue to require CYA tests. Bills get higher, Medicare and Medicaid gets stretched.
Those same hospitals are starting to have to grow to accommodate an aging population larger than they have seen in the past. Much like schools of the 50â€™s had to be built to accommodate the Boomers, hospitals are now in that zone. State run hospitals bear much of the indigent population that has to be cared for. And that population will grow as it gets older and moves out of the work force. States will look to the Fed to supplement their budget to build these hospitals or just raise taxes in state to accommodate their revenue needs.
The Boomers are starting to retire. Others have been force retired. Manufacturing jobs are shipped offshore to â€śsave moneyâ€ť. The number of workers paying into the Revenue System is FLAT at best. Department of Labor has tables that show near a million lay-offs per month in the past Six Years and also show creation of 6 million NEW JOBS. What this means in regards to taxes is the NUMBER of WORKERS feeding the tax system.
Much has been made of the â€śdevolution of the Middle Classâ€ť. There are about 10 economic models that argue different points of view on it. Most agree with one premise, however, that service jobs on the bottom end of the economic spectrum and salaried jobs on the top end of the economic spectrum [$125K+] are increasing but the $40-80K [median $60K now defined as Middle Class] jobs are stagnate â€“ except for healthcare. That Middle Class has always been the â€śbread and butterâ€ť of the Revenue Stream. Think Bell Curve here with a widened out bell at the bottom end for service employees.
If the number of workers does not increase, either through stopping offshoring or major [10Million+ tech boom type] economic increase, revenue streams are going to be stagnate and not keep up with increasing costs associated with growing Healthcare and Infrastructure expenses and costs of the soon to be $10Trillion Debt.
Whether there is a Republican or Democrat in the White House, a Republican or Democratic controlled Congress, these issues have to be addressed.
Being smart is knowing the difference, in a sticky situation between a well delivered anecdote and a well delivered antidote - bear.