Most of you, by now, have heard of David Walker. He’s been sounding the warning cry about our country’s fiscal irresponsibility for years. I’d now like to introduce you to Laurence Kotlikoff. He’s a professor at Boston University and for an equally long period of time has been sounding the warning cry about the fiscal cliff that awaits our country. If you’re interested in learning his take on our country’s outlook, I would suggest that you proceed at your own risk. Mr. Kotlikoff is much more apocalyptic than David Walker and makes a case for an unfunded liability that far exceeds David Walker’s $60 to $70 Trillion. In fact, David Walker’s debt projections are a paltry sum compared to the red sea of ink that awaits us under Mr. Kotlikoff’s projections.
In this article, Mr. Kotlikoff argues for massive reductions in spending, but near the end of it, he talks about tax rates and where they have to go if we continue down the current path. Read this article in controlled doses. It’s quite sobering. Otherwise, Happy Monday!