Moreover, all American families will get stuck with a new “light-switch tax” on electricity bills that is in the president’s budget. Even though taxes will go up dramatically, this new revenue will not be used to reduce the deficit. Instead, it is going to expand the government beyond what we can afford.
And since the revenue the government collects still won’t cover all its spending, we will be left with an unsustainable level of debt. Under the president’s budget, the national debt doubles in five years and nearly triples in 10 years. Our debt will exceed 80 percent of GDP by 2019 — the highest level since World War II.
This borrowed money is certainly not free. Our children and grandchildren will be hit with the bill. Sadly, in 10 years, we will spend more on interest payments on this debt than we spend on education, energy and transportation combined — almost four times as much.
Imagine that as your family budget. Could you afford to spend so much on credit card finance charges that it dwarfed what you spent on food, utilities and other necessities? Neither can our country.
Maybe that will put this in perspective for people. Interest payments alone will dwarf all money spent on education, energy and transportation combined. This is a recipe for total disaster. GM and AIG may be too big to fail, but at this rate, the US will not be.