With the economy in the tank, America’s population getting older, and government spending, IRS attorneys say the government is facing a huge problem. Beginning in 2010, the “baby boomers” started reaching retirement age. As the country approaches 2015, the percentage of our population getting ready to retire is expected to grow so quickly that the U.S. economy, even operating on all eight cylinders, won’t be able to keep up. This, according to several IRS tax attorneys, means the government will be forced to drastically cut spending, drastically increase taxes, drastically increase the country’s debt ceiling, and/or all of the above immediately following the 2012 Presidential election.
As the U.S. Congress debates increasing the current debt ceiling ($14.26 trillion dollars), because we have already exceeded that amount this past April when the national debt rose to a staggering $14.28 trillion dollars, IRS tax lawyers suggest our nation’s tax-base is shrinking as more and more Americans retire, and more and more manufacturing jobs leave the country. The problem becomes more acute, according to these IRS attorneys, when politicians focused on getting reelected can’t, or perhaps more accurately won’t fix the problem while there is still time to avoid a much larger predicament in 2015 and beyond.
Currently, government spending accounts for approximately 25% of America’s gross domestic product (GDP). Most economists and IRS attorneys will tell you that as government spending becomes a larger percentage of GDP, our economy becomes less stable and less capable of supporting that government spending.
As our population matures, IRS tax attorneys point out programs like Medicaid will require much more funding absent extraordinary reforms. Paul Dietrick, chairman of Foxhall Capital Management, and a former Republican Congressman from Missouri, suggests the country can live with government spending hovering around 20% of GDP. But in order to achieve that percentage, Dietrick argues the country will have to increase the retirement age to 68, and we’ll need to reform the corporate tax system to collect more taxes from big corporations.
With the country rapidly getting to the point where 30% of its population will be retired, it doesn’t take a rocket scientist to understand the problem will get much worse within the next few years. IRS tax lawyers are concerned that with people living longer (the average life expectancy is now in the 80’s versus when Social Security first started folks were expected to live to age 68) and the baby boomers quickly reaching retirement age
in large numbers, the government’s options are getting more limited by the day.
It’s time the government stops playing politics, focuses on real tax reform and living within its means. Most IRS attorneys will tell you that we can no longer afford politicians who push off uncomfortable decisions until the next election cycle, and who are unwilling to jeopardize their own political careers to fix the country’s financial problems.
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