For months we’ve discussed the number of people and households in the United States that don’t pay any federal income tax, a number which continually grows larger and larger. Zero Hedge published a chart a couple of years ago that shows the result of the out-of-control entitlement society we have created, a virtual European social welfare state in the U.S. Look closely at the chart, not just the bottom line, but look at it from all angles and soon you realize that we have perverted the concept of work and the social safety net when it is just as economically beneficial to depend on the government as it is to work for a living:
What the chart doesn’t show, however, is the insidiousness of those who are trapped in this ever-expanding welfare state. This chart fails to show the misery, lack of self-esteem, lack of motivation, and destruction of the family such policies cause. President Obama just submitted a budget (actually, it’s a farce because no one is going to consider it, Harry Reid has already announced there will be no Senate budget hearings) that gives you incredible insight into the President’s thinking – more of the same social spending that creates the imbalance shown in the chart above. When Congressman Paul Ryan asked Treasury Secretary Timothy Geithner how they’re going to deal with the increasing debt (he says 94 trillion…a staggering sum) Geithner’s response is simply, “we don’t like your solution.” Watch and listen closely:
As long as politicians ignore this problem, and mess around on the edges of tax reform and spending cuts, the following chart will get even worse, and those of us who believe in a free market, capitalist society with a limited federal government, will be hiding in the hillsides:
Eventually the golden goose, those working and paying the taxes to support this unsustainable trend, will disappear. And then the system collapses.