IMF Analysts See a Bleak Future for American Taxpayers

by adicodrean1967 in Issues, April 5, 2011

Economists International Monetary Fund (IMF) forecast a bleak future for American taxpayers who will pay higher taxes for less social protection, said in a study published Monday.

“The United States is in an unsustainable budgetary situation, due to a combination of a large budget deficit, due to an aging population and rapid growth in funding for state paid health, ” said the three authors of the study entitled “An analysis of budgetary imbalances General and the United States: who pays and how? “.

The problem will be caused by higher costs that will be able to state that in future social costs.

“A lot of these in the U.S. budget liabilities related to future benefits through federal programs of social protection”, say the authors.

The “basic assumption” the authors include stabilize debt at current levels relative to GDP, which implies “all taxes and fees increase, while social benefits should be reduced immediately and permanently by 35%, provided that any delay will increase costs. “

The IMF noted that this research does not involve the institution’s view, only the author’s.