By Dieter Benz

This video’s comprehensive yet easy to understand articulation of the long term financial crisis our nation faces is a must see for Baby Boomers. Thanks to Larry Doyle’s ‘Sense on Cents’ financial website for bringing this Traveller’s Institute sponsored video to our attention.

We do not agree with all points expressed, particularly the ‘balanced approach’ of tweaking our present tax code to increase revenues now while reducing spending some time in the fuzzy future.

Taxes have a negative multiplier effect on economic activity, which means increases only exacerbate already difficult situations. Promised future spending reductions never actually occur, and as far as taxing the rich, their tax attorneys, lobbyists and accounting firms see to it that they never actually fork over those increases. It’s the middle class that always ponies up in the end.

The ‘revenue side’ of this crisis equation would be better addressed by adoption of a simple one page 18% flat tax with zero deductions and loopholes. In addition to providing those increased revenues many think are needed, this simple approach would release tax accountants, tax attorneys, lobbyists and bureaucrats for productive work that our economy actually requires if growth is to be restored.