Saturday, July 12, 2003

Freidrich Blowhard brings up an interesting point here in a discussion of the new Medicare drug benefit proposal.
Mr. Gokhale brought a certain historical rigor to the discussion:

A given generation’s lifetime net tax rate is the fraction of its lifetime labor earnings that it pays in net taxes to the government, where both numerator and denominator are present values at birth….Figure 1 shows that the generation born in 1900 pays at the rate of 23.9 percent.
Calculations show that the present value gap of $9.4 trillion [between the governments future revenues and its future obligations]…implies an average lifetime net tax rate of 49.2 percent [for cohorts born in the late 1990s].
I don’t know when the American social welfare state converted the elderly into Saturns devouring their children...

Worth researching more on the topic.


Post a Comment

<< Home