I’m grateful that the PJ Institute has involved me in this project. It’s fired up and ready with its primary items; other developments and improvements will appear over the next several months.
App Models Future Tax Increases Needed to Stabilize U.S. Debt
The PJ Institute(TM), the research and education arm of Pajamas Media, today launched its National Economic Rescue Initiative, that projects the amount of additional taxes current and next generation American families may need to pay, over their working careers, to stabilize the U.S. debt. The initiative’s web-based app, the PFI Projector(TM), enables users to see a projection of future taxes their families may owe in order to keep the nation’s debt-to-GDP ratio under 90 percent.
The PFI (Personal Financial Impact) Projector also enables Americans to model federal spending cuts in two ways. First, this application provides its users with information on current government spending trends, and it lets them estimate the cuts they think the U.S. Congress should make to entitlement programs (Medicare, Medicaid and Social Security), defense and other programs. Second, users of this app can model and formulate their own recommendations, sharing them with others at the National Economic Rescue Initiative’s website.
“The American Dream is being turned in a nightmare by uncontrolled federal spending leading to skyrocketing levels of federal debt,” said Laurence Kotlikoff, the project’s chief economist. “The PFI Projector is a marvelous educational tool that helps us gain a deeper understanding of our country’s deteriorating fiscal and economic condition. Millions of Americans are extremely concerned about the problem. But the official deficit and debt numbers as well as the unofficial future spending obligations are so large, it’s tough to grasp them, let alone relate them to one’s own finances. With the PFI Projector, Americans clearly see the direct connection between government spending levels and America’s impending insolvency. They also see that the failure to control federal spending will personally cost them and their children in terms of dramatically higher future tax rates.”
The PFI Projector is the first educational tool released by the PJ Institute as part of its National Economic Rescue Initiative. For individuals who want to understand the issues behind the nation’s spending, deficits and debt, the PFI Projector provides historical, current and future perspectives.
At its website, the PJ Institute also provides an interactive capability that enables users to submit their recommendations on federal spending changes to a virtual Solution Design Center. Here, individuals can see the spending recommendations submitted by everyday Americans as well as from professionals with backgrounds in business, economics, financial services and other related areas. These recommendations are categorized by federal spending programs and the economic and financial aptitude of the Solution Design Center’s users.
About the PFI Projector
The PFI Projector, a web-based application, was developed by economists Laurence Kotlikoff of Boston University, Thomas Saving of Texas A&M, and Edward Stringham of Fayetteville State University, working with IT developers at the California-based PJ Institute. Users of this app can plug themselves into its equations to see what their tab, or their children’s tab, could be if federal spending continues to spiral upward. Users can also model cuts to the spending levels of various government programs and see how that fiscal restraint could affect their future taxes. For each model the PFI Projector displays, it shows the assumptions being used and the reasons why future reality could turn out better or worse than the model.
About the National Economic Rescue Initiative
The flagship study of the PJ Institute is its National Economic Rescue Initiative (NERI). The American Dream, defined by the opportunity for Americans to create a better future for themselves and their children, is eroding fast. The initiative’s aim is to empower Americans with information and education and provide them with a forum where they can develop solutions to rescue the American Dream for current and future generations.
About the PJ Institute
The PJ Institute, the research and education division of Pajamas Media, provides practical, in-depth analysis of policies that impact the American people. PJI offers its research and commentary through web-based applications, text, video and podcast formats. PJI’s flagship study quantifies how Americans could be impacted financially in the coming years based on the U.S. government’s deficit spending and resulting national debt.