International Monetary Fund Report: America Doomed
By David Weigel
Here’s your nightmare fuel for the day: “An Analysis of U.S. Fiscal and Generational Imbalances: Who Will Pay and How?” The IMF crunches the numbers and warns that only huge tax increases and entitlement cuts can save America.
Under most scenarios, the fiscal adjustment needed to eliminate the fiscal and generational gaps would entail significant adjustments in taxes and/or transfers. Under the baseline scenario, for example, the federal government can restore fiscal balance by raising all taxes and cutting all transfer payments immediately and for the indefinite future by 35 percent.