With the U.S. national debt soaring past $34.7 trillion and set to rise a trillion every 100 days under President Joe Biden, one of the world’s most famous investors, Berkshire Hathaway's Warren Buffet, said tax hikes will be necessary to foot the enormous bill.
"They may decide that someday they don't want the fiscal deficit to be this large because that has some important consequences,” Buffet said of the nation’s policymakers. “So they may not want to decrease spending, and they may decide they'll take a larger percentage of what we own, and we'll pay it.”
The “Oracle of Omaha” made his prediction at the annual meeting of his investment company, which handles more than $364 billion in assets. He sounded a positive note on the U.S. dollar, noting, “My best speculation is that U.S. debt will be acceptable for a very long time because there's not much alternative. There really isn't any alternative to the dollar as a reserve currency, and you get a lot of speeches on that, but that really is the answer."
Dragging the RINOs in Congress along with them, the Democrats ascribe to what they call “modern monetary theory,” believing that borrowing more money and spending it will boost the economy. The lived experience of the citizenry says otherwise, as families struggle with exorbitant prices for fuel, groceries, and everyday expenses caused by flooding the market with made-up money.
Buffet knows the bill for the massive government borrowing spree must come due, and with a White House and Congress unwilling to pause their wasteful ways, they will have no choice but to raise taxes. Taking more from people’s paychecks will have a chilling effect on a nation already groaning under “stagflation,” the simultaneous impact of both inflation and stagnant economic growth.
With the country suffering record inflation and paltry economic growth under “Bidenomics,” the last thing taxpayers need is for the government to take more of their money. Taxpayer hopes for relief were dashed under former GOP House Speaker Kevin McCarthy when he cut a deal with the Democrats to remove the federal debt limit until after the 2024 elections, giving Biden a free rein to escalate spending.
House Conservatives railed against what they deemed “Republicans in Name Only” and booted McCarthy from the speakership. His replacement, Mike Johnson, came in on a razor-thin Republican majority and swiftly raised the ire of taxpayers for joining with the Democrats in passing a $95 billion foreign aid package, including $61 billion for what many consider a fruitless war against Russia in Ukraine.
As U.S. leaders remain numb to the ramifications of the national debt and the financial stress caused by their policies, the red ink goes up by over $40 billion a day. The effect on the quality of life of Americans is staggering as every taxpayer is currently on the hook for nearly $267,000 courtesy of their Uncle Sam.