Running the government on 8 cents
Today, the United States spends roughly 76 cents of every federal tax dollar on just four things: Medicare, Medicaid, Social Security and interest on the $14 trillion debt. That leaves 24 cents of revenue to pay for everything else the federal government does.
That's not a lot. But it's a mint compared to what could be left over by 2020, according to a simulation made by the Government Accountability Office.
Barring serious efforts to curb the growth in the country's debt, by 2020 Washington could be spending 92 cents of every tax dollar on Medicare, Medicaid, Social Security and interest alone. That would leave just 8 cents to pay for everything else.
How much of "everything else" can 8 cents buy? Not a lot, especially relative to what Americans are accustomed to their government providing.
Comment: At the tipping point?