Posted on 03/10/2010 1:10:21 PM PST by rabscuttle385
If Millennials realize they're going to have to pay the fiscal price for baby boomers' sins, they might choose to leave the US for more financially friendly locations.
BY TIM KANE
What if they had a fiscal crisis, and nobody came? What if the chump generation figures out the Ponzi scheme? Bob Samuelson thinks the fallout will be political:
... As baby boomers retire, higher federal spending on Social Security, Medicare and Medicaid may boost Millennials' taxes and squeeze other government programs. It will be harder to start and raise families.
Millennials [ages 30 and younger] could become the chump generation. They could suffer for their elders' economic sins, particularly the failure to confront the predictable costs of baby boomers' retirement.
Samuelson asks the question in a political context, and that's how most analysts interpret the looming fiscal crisis, as if young voters will punish fiscally irresponsible representatives in Washington. My alternative theory focuses on the context of immigration. Already you may have heard about the millions of illegals who departed the U.S. when the Great Recession dried up job opportunities. A lot of crass nativists might think "Good Riddance!" but I wonder what they'll say when their own children seek greener pastures abroad in 10 or 20 years?
(Excerpt) Read more at csmonitor.com ...
Re: “Where will Americans go?”
Likely many of the same places they have already been going for the last few decades. There are already American expats living all over the world, getting businesses off the ground on every continent. Check out the engineering and management staffs of many (I did not write “all.” I wrote “many.”) of the the semiconductor fabs in SE Asia, for example.
Re: “most nations don’t have such open border policies.”
Actually, many attractive nations do, in fact, have pretty open border policies for the productive young (”young” in this context meaning “not retired or close to retirement”). The productive young — and they alone — are the people that this article is about. Even famously monoethnic Japan has granted Japanese citizenship to productive Gaijin. I met a Japanese citizen from Poland on the Shinkansen one day. He’d been granted Japanese citizenship for himself and his entire Polish family because his kiretsu needed his skillset. As for other attractive countries — New Zealand, for example — getting in if you are properly educated and trained is apparently pretty straightforward.
So, don’t fool yourself. There are plenty of countries that can, and want to, take productive young people from the USA.
The two Flash Jrs. (’05 and ‘07) already have their foreign passports.
But the Chump Generation isn’t going to be the Millenials, it’s going to be the late Boomers and Gen X — because when the Millenials are faced with toiling endlessly to keep the Senior Gravy Train running, Atlas is going to Shrug.
Boomers (I’m one) gave robust support to governments which have pillaged the economy and avoided facing the facts of Social Security for the last 25 years.
You mean like the Great Society? Like keeping Democrats in Congress for forty years? Like not dumping an insolvent Social Security when they had the chance? Like deducting even their credit card debt?
Oh, wait, that's "the Greatest Generation," so deemed by that great conservative, Dan Rather.
News to Niuhuru: There is plenty of blame to go around.
well, people can renounce their citizenship.
I’ve certainly considered it.
New Zealand rejected an application because the person submitting was “obese”. That would eliminate one half of the United States if we are to believe the pravda media.
It is already law.
Code section 877A (enacted by section 301 of the Heroes Earnings Assistance and Relief Tax Act of 2008)
Federal / International Tax
US Exit Tax Guidance
November 17, 2009
Printer-Friendly Version
Originally published in Canadian Tax Highlights, Volume 17, Number 11, November 2009. Reprinted with permission.
Notice 2009-85 (2009-45 IRB 598), October 15, 2009, contains long-awaited guidance on the new exit tax rules in Code section 877A (enacted by section 301 of the Heroes Earnings Assistance and Relief Tax Act of 2008 to replace Code section 877’s 10-year alternative tax regime on certain US-source income of covered expatriates). The exit tax may apply to a US citizen who relinquishes citizenship and to a long-term US resident (who has held a green card for at least 8 of 15 years) who ceases to be a lawful permanent resident. A “covered expatriate” generally includes an individual who meets an income tax liability test or a net worth test and may include an individual who has not filed US tax returns. The notice may be of particular interest to a US citizen living in Canada who may be considering the renunciation of his or her US citizenship.
Code section 877A(a) imposes a mark-to-market regime on a covered expatriate: generally, all of his or her property is deemed to have been sold at FMV on the day before expatriation. Regardless of other Code rules, the deemed gain is included in that taxable year’s gross income and reduced—but not below zero—by $600,000, adjusted for inflation ($626,000 in 2009); but any loss from the deemed sale is taken into account only if allowed by another Code section. Payment of the resulting tax may be deferred until the due date of the return for the taxable year of actual disposal.
We’re doing it with our business. Moving from WA to Idaho. Done with WA state.
Two of my friends decided they would find adventure in Mozambique and Vietnam.
They are very happy!
BS they will have to pay for baby boomer’s sins.
BS
BS
How about paying for corrupt government’s sins!?
Maybe they'll go to the only nation that still values liberty. I'm speaking, of course, of Honduras.
Medicare, SS, and Medicaid were not boomer creations, boomers did not make the world perfect nor totally stop the march of liberalism, but they did slow it, most of the left’s great gains were made roughly from 1935 to 1975, the left started running into a tar pit as the boomers came of age to start voting and participating in American life.
The first Presidential election in which all boomers could vote was the 1984 reelection for President Reagan. By the late 1980s the older boomers were starting to enter the lower positions of power, nothing since has been as destructive as that 1935 to 1975 period of fatal, irreversible destruction of America.
And this is why Europe is dying.
Let me put it to you this way, I’m learning Polish.
Not as much of a stretch as one might think. I’m a huge ice hockey fan, and one of the remarkable trends I’ve seen is young players from Eastern Europe going back there to play even during their peak years. The Russian professional leagues have done a good job of getting talented players to move there.
Boomers have been trying to change SS for the better. If you are old enough, then you remember the truly leftist radicalism of pre boomer generations.
The “sins of the Boomers” wasn’t in creating those programs . . . it was in failing to have enough children to keep those programs solvent.
They won’t leave, they’ll “go Galt.” It’ll be like Greece.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.