The current financial situation for America is dangerously untenable. Representative David Schweikert (R-AZ) all but said as such in a recent speech on the House floor, describing the tax hikes that will occur to bring in revenue to fund extravagant spending, impoverishing the middle class and resulting skyrocketing debt.
"So when we get near the end of this decade, the Social Security Trust Fund is empty, the Transportation Trust Fund is empty. If the President had gotten his way with tax maximized just to cover the shortfall in the Medicare Trust Fund, where do you get the money? I will lay a marker down today — by the end of this decade, this country will have a VAT tax, a value-added tax, just like the rest of the industrialized world, just like Europe, just like everyone else. And at that moment, the working middle class, that hardworking middle class, will be poorer," said Rep. Schweikert.
More to the point, Rep. Schweikert pointed out that many cuts found in the 2017 Tax Cuts and Jobs Act are set to expire in 2025, and those who wish to continue spending without reform are "already relying on your taxes going up."
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As a result, the national debt will explode to $48 trillion by 2030, which he said "makes sense if we are clicking off $1 trillion about every 125 days."
As alarming as this is, the Biden Administration would raise taxes rather than make spending cuts or reforms. As President Biden announced during the State of the Union address, "I will not cut Social Security, and I will not cut Medicare. I will protect and strengthen Social Security [and] Medicare and make the wealthy begin to pay their fair share."
Medicare, said Schweikert, is exactly where much of the national debt comes from, as he explained in a recent interview with Cactus Politics.
As a result, if Medicare is allowed to run as is, senior poverty would double "in eight or nine years."
"My simple projection is this Congress has decided to put the bond market in charge of this government [...] because remember, $95,000 a second is what we are borrowing. That is about $9 billion a day is what we are borrowing. We have actually had a couple of months so far this year where we've had to borrow money to pay the interest [costs]," Schweikert concluded.
