Twice a year, the Congressional Budget Office issues a report or rather updates its annual “Budget and Economic Outlook.” This report projects the nation’s fiscal conditions for the next 10 years based on current laws. The most recent update was in late January and it painted a grim picture of out-of-control spending, growing debt, and irresponsible budgeting. For example, the CBO is projecting that by 2027, or a decade from now socialize healthcare will cost taxpayers close to $1 trillion. Social Security and healthcare spending will consume almost 60 percent of the budget and we will be paying $768 billion in interest on our debt.
This report has not attracted much attention because of the political upheaval with a new administration and the bickering over healthcare reforms. Yet this report is screaming some things to which we should pay attention. I do not think it matters what your political persuasion is, those numbers are simply frightening. But those numbers are not the end of the story. Here are eight of the sections from that report:
1. Out of control spending
2. Mountains of debt
3. The interest on the debt
4. Social Security’s unsustainable path
5. Higher government expenses on healthcare
6. Structural problems in the federal budget
7. Who’s paying
8. Healthcare in the federal budget
I am not trying to just publish what some would consider bad news. My reason for sharing this official report with you is simply to help you get to a point where you will finally act in your own best interest. What do I mean? Let me explain by asking you a few questions questions.
A. Do you believe taxes are going up or down in the coming years?
B. Do you want to pay those taxes?
C. How much of your wealth is currently positioned in such a way that you will be paying those taxes?
D. When are you going to re-positions your assets to protect more of them from the coming increases in taxes?