Countries have the potential to live forever. Therefore, they can carry debt for a long long time. Major countries like the USA can service their debt by taxing their citizens and by borrowing from their citizens, foreign investors and nations. When these alternatives proves inadequate, nations like the USA can actually print money for this purpose.
The printing of money is one of the many hidden methods used by some governments to service their debt. Of course, printing dollars reduces the purchasing power of the currency, and of one’s dollar-denominated wages and assets. It is, in effect, a hidden form of taxation.
I think this printing option is one of the hidden strategies behind the irresponsible spending of the Democrat Congress since 2007 and the Obama administration since 2009. If push comes to shove, the US government has the ability to print money as has been demonstrated by the Federal Reserve in recent years. Of course, they cannot admit this without undermining our Fiat currency (which is based on faith).
Not that Democrats have given up on old-fashioned tax hikes …
After the first of next year a 3.8% surtax will be applied to any profits you make on the sale of assets –such as stocks, bonds, real estate, et cetera. This surtax will be in addition to the regular tax on the sale of assets.
This surtax is part of the ObamaCare legislation that is now the law of the land and will help to fund the cost of ObamaCare. This tax is just one of many (eight) new taxes that will impact taxpayers as a result of ObamaCare. It will even affect the 45% of our citizens who now pay no federal income tax.
Romney/Ryan have pledged to end ObamaCare and replace it with a market based healthcare system that will not increase taxes.