By Marnina Delahanty
No matter how you slice it, taxes will be going up. The smart money is hedging future financial impact by paying taxes now, and developing tax-free retirement income to provide a comfortable future. Let’s first explore the issue before addressing a little-known solution.
America, We Have a Problem!
The US budget gap widened 26% in fiscal year ending September, 2019 over that of 2018, increasing by nearly $1 TRILLION, reports The Wall Street Journal. While federal revenue grew by only 4%, federal spending increased by 8%. The US deficit surpassed $23,016,805,000,000! That’s the Treasury Department’s 9/30/19 Summary of Outstanding Treasury Securities. Let’s take an informative binge moment to feed our National Debt outrage and educate ourselves along the way. Considering its importance, it’s the responsible thing to do.
How Did We Get Here?
First off, you don’t reach $23 TRILLION of debt without historical context. Since its 1917 inception, the national debt’s ceiling has only moved in one direction – up. For over 100 years now, it’s grown regardless of presidential campaign promises, or party affiliation. It was raised 74 times between March, 1962 and May, 2011, alone. When The Bipartisan Budget Act of 2019 was enacted on 8/02/2019, it modified discretionary spending limits and suspended the debt limit until 7/31/2021. This buys us time to hide from the problem until we’re next forced to face it.
But, what we know for sure is that, in the meantime, the national debt continues to grow. The same horrified curiosity that compels us to look at car accidents grabs us by the throat if we dare watch the US National Debt counter raging ever-higher at the real-time US Debt Clock. Watch the US Debt climb in real time by clicking here.
Check out Part 2 of this 3-Part series, where we’ll explore the National Debt’s ramifications for your financial future, and how you can personally avoid the looming tax tsunami with tax-free retirement solutions. Available Wednesday, 11/06/19.