Tax month is a good time to revisit where our money goes. Some goes to your state and local governments, of course. But the bulk probably goes to your national government. As the below chart from the Pew Research Center shows, the U.S. Government spends nearly $4 trillion annually. On what? Here’s the breakdown:
Earlier today the Congressional Budget Office released its long awaited report on the economic outlook for the country, including the impact of the recent tax cuts. If you want to see where your country is headed from a fiscal standpoint, follow this link to the CBO’s report: The Budget and Economic Outlook: 2018 to 2028. Read it and weep.
Two factors are driving the fiscal cliff we’ve decided to live on:
- unfunded wars; and
- tax cuts.
As a result, America is mortgaging its future. Big time. Growth will be lower than it need be. And our children and grandchildren will be left to clean up the mess.
The mess could be bad. Really bad. The potential for a fiscal crisis increases as the nation increases its leverage. And the next crisis could be worse than the last one, which was bad enough.
Rational people wouldn’t take these risks. Or leave a mountain of debt for their kids. Selfish, short-sighted people would.
Oh, well, it is what it is. Plan accordingly.