Monday 4 April 2011

An Analysis of U.S. Fiscal and Generational Imbalances: Who Will Pay and How?

http://www.imf.org/external/pubs/cat/longres.aspx?sk=24770.0


http://www.imf.org/external/pubs/ft/wp/2011/wp1172.pdf


I said a couple of days ago on this BLOG that taxes will go up in the US as there is no other way the Govt. can generate any revenue.


Here is a link to a paper that was released by the IMF.


Conclusion -


"We find that, under our baseline scenario, a full elimination of the fiscal and generational imbalances would require all taxes to go up and all transfers to be cut immediately and permanently by 35 percent. A delay in the adjustment makes it more costly."



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