Jan 18, 2009

F.Y.I.

For a country to just have a stabilized population, the fertility rate needs to be at 2.1. That is as low as you can go and still maintain what you have. So if the government of that country decides to get bigger and take on more and more responsibilities but the tax base does not increase than the taxes will have to. If a country can't produce more people than more is going to be taken from the ones that exist. America is at 2.1. Americas government is getting ready to spend an unprecedented amount of money. Tax payers money. With out an increase in the tax base (population increasing) than the current tax payers will have to foot the bill. The government will have no alternative. So when our government talks about an tax cut, who is going to pay for the entitlements. A tax cut is when they cut your rate. Obama is confusing cutting our taxes with cutting a check. Someone will have to pay for those checks. At some point in time.