Uncle thinks it’s going to get raised. I agree. I have one more prediction for the next several years as well: we’re going to raise taxes. The fundamental problem is that the baby boomer generation didn’t have enough kids and didn’t save enough of their income for retirement, yet they expect the same cushy retirement their parents had (who did often save, and had plenty of kids). Given that the politics of this country has typically tracked the boomer generation, there’s no way we’re getting over this hump without more taxes to cover social security and medicare obligations. This problem is only going to get worse as more boomers retire and end up on the dole.
The only way this is not going to happen is if we have substantial entitlement reform now, which isn’t likely, and whichever party tries that will likely get eviscerated at the polls. Unless Gen Xers and Gen Yers can basically become a unified political movement, and essentially gang up on the boomers and say no to taxes and yes to entitlement reform, we will have more taxes to finance baby boomer retirements.
I don’t believe financial sense will come to the government until both sides come to an understanding that the current path is unsustainable, and the Democrats agree they’ve run out of other people’s money, and stop with the stimulus, bailouts, high speed rail, green jobs, and all the other bullshit they like to waste money on. Republicans need to focus on balanced budgets, and sometimes that’s going to mean you need to get voters to face the true costs of the programs they are demanding from government.
We not only need to reduce the deficit, I think we need to pay down debt. The current world financial system is precarious. Europe is on the verge of plunging off a cliff. I think China is a giant bubble waiting to burst. The Islamic world is brewing, and God knows what is going to come out of there, and God help us if it has nuclear weapons, and the means to deliver, on top of that. Historically, all this would mean there’s a large, bloody war coming. What money will we use to finance that if we’ve maxed out the credit card?
I’ve joked with my father that we’ll have to draft baby boomers to fight the next war, so we fix the social security and medicare liability problem at the same time. That generation has already fought a war, but this one we’ll let them win. They can drive the tanks, man the ships, and ferry supplies. We’ll let the kids who are good with video games control the UAVs, the high-powered space lasers, and giant killer robots.