THE FUTURE LIES AHEAD (WITH A HAT TIP TO MORT SAHL) – AT 9:45 A.M. ET:  Our taxes are on their way to Washington, an annual pain, and Americans are increasingly apprehensive over the future of tax rates.  The fact is that our tax base doesn't equal the nation's financial obligations.  Tax advisers are giving some grim news to taxpayers about the future.  From The Hill:

As many Americans finish their returns to send to the IRS, some financial advisers say that, with deep budget deficits and the Bush tax cuts set to expire at the end of next year, they are counseling clients to prepare for a rise in their tax bill in the coming years.

“We’re going broke,” said Clint Stretch, managing principal for tax policy at Deloitte Tax. “Whenever we’ve had big deficit-reduction measures in the past, it’s always had some spending cuts and some tax increases.”

Still, the advisers say that, even as President Obama has reiterated his call to allow taxes to rise on the wealthiest Americans, it’s difficult to forecast exactly how some clients will be affected by changes to the tax code — especially given the current push for tax reform.

And, they add, while the current fiscal situation is particularly stark, it’s also just the latest example of the uncertain tax situation they and their clients have dealt with historically.

COMMENT:  I'm afraid that some higher taxes, possibly in the form of sales taxes, are coming.  It is almost impossible to figure out how such a divided nation will agree on a budget that keeps us within our means.   Once again we will turn to tax increases, if only temporary ones. 

Bottom line:  This nation faces severe economic problems.  A president with character will have to tell the truth to the American people.  They will be prepared to sacrifice...but only if sacrifice is fairly distributed across the board.  That means Democrats will have to face the ridiculous pensions and salaries of many public-service workers, and Republicans will have to face the obscenities of Wall Street fast-buck artists and their fellow travelers in crony capitalism.  Not a pretty picture for either party.

April 18, 2011