$1400 tax hike needed to fund gov’t pensions

Study: $1400 tax hike needed to fund gov’t pensions – Obama already plundering funds to pay off retirements of campaign supporters

Got an extra $1,400 in your pocket?

That’s how much you’ll have to pay in tax hikes every year for the next 30 years to cover the exploding costs of government employee pensions.

“The study, co-authored by Joshua Rauh of Northwestern University and Robert Novy-Marx of the University of Rochester, both of whom are finance professors, argues that states will have to cut services or raise taxes to make up funding gaps if promises made to municipal employees are to be honored,” Reuters reports.

The Obama administration has already adopted one plan – raising the pensions of non-union workers and giving their retirement funds to unions that support his campaign.

“The administration gave union employees of auto parts supplier Delphi Corp. preferential treatment over nonunion, salaried employees when the U.S. took over Delphi’s pension plan, GOP representatives say,” The Los Angeles Times reports.

Clearly, spending must be cut immediately.

This is why Libertarians are so badly needed in state legislatures and local city councils.  Only Libertarians will make the tough decisions to control spending and rein in government that have grown out of control under Republicans and Democrats and now threaten to bankrupt working families.

Source: CNBC

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