Bad things happen to an economy when debt exceeds
77 percent of GDP. When debt exceeds 90 percent, growth
rates are cut by half or
more. Our $16 trillion debt exceeds 100 percent of GDP.
Presidents Harding, Kennedy, Reagan and George W. Bush each
made major reductions in income tax rates. Each time, revenues
rose substantially. Yet
Obama wants to raise them.
Since it's the effective ceiling on revenue, no matter how
we manipulate the tax code, spending must be held below 20 percent of
GDP. If the government
keeps adding to our mammoth debt, it won't just exert more drag on the
economy. It'll crash it entirely.
Adios, America.
But, hey, you got a free cell phone!
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