The government has the same problem (in spades!) and the same two options, and it sure looks like the Obama administration is opting to increase taxes in lots of sneaky ways rather than find any real savings:
I’ve noted any number of times that government taxes comprise 14% of the national income and government spending is at 25% of the national income. That’s as high as its been since WWII I believe.
The point, of course is there are three obvious choices here – cut spending to the income level (and beyond, really, if you plan on paying off debt) or increase taxes to the spending level (and beyond, again, if you plan on paying off the debt) or a combination of both.
Watching this current administration, it appears option two is in the works. Lots of lip service about “unsustainable” spending, etc., but the only movement I’ve seen is legislation that increases that. And, also, plans to increase taxes.
The health care bill is chock full of new taxes. If you don’t believe it, review these two listings of the new taxes to be found in there.
Cap-and-trade, and now “Son of Cap-and-Trade” being sponsored by Senators Lindsey Graham and John Kerry significantly raises taxes on utilities (which means everything will cost more for consumers).
We've gotten to the point where the big-ticket spending items are off limits, taxes are being paid by a shrinking pool of people, and an entrenched government is more interested in protecting their position and power than in governing and serving. Any wonder I'm pessimistic?