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RE: Can Trump Salvage The Sinking US Ship?

in #money8 years ago

Most people never take into account that there is something called the Fiscal Gap, which at this point sits well over $210 trillion. Given the current approximated population in the US of 315 million tax slaves, that is $666,666.66 per person!

Fiscal Gap is a grossly misleading statistic. -- one that was created to grab headlines and alarm people.

Basically, what fiscal gap does is project the cost of the governments financial obligations foward, in some cases as much as 40 years, but assumes that the government will continue to collect the same amount of taxes in absolute terms.

That is to say, it assumes that not only will the government take the same percentage of the GDP as tax revenue, but that GDP will actually stay the same, and that percentage will actually be the same absolute dollar amount. needless to say, this is not true, especially for expenses projected far in the future (which is where the the bulk of the fiscal gap lies)

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