ELMHURST, IL - January 23, 2008 - - On December 17, 2007, the Treasury Department and the Office of Management and Budget’s financial report published ITS concerns regarding the United States Government’s ability to finance social programs in the future. According to the report, by 2080, the cost of Medicare and Social Security “will exceed the Government’s ability to pay.”  The Government’s promise to Americans in Social Security, Medicare, Medicaid and other social programs over the next 75 years amounts to over $45 trillion more than it can afford without borrowing, moving the Government towards unsustainable debt.

Patrick T. Sheehan, local tax attorney and former IRS attorney, warns “The United States Government will be bankrupt within our children’s lifetime.”  He explains, “The United States Government is the largest employer in the United States, employing more than 1.8 million civilian employees, excluding the postal service.  Unfortunately, unlike other businesses, the Government makes no money.  Rather, it simply collects taxes.  The cost and number of social programs have steadily increased, yet the Government cannot afford to keep up with the expenditures.  As a result, the Government is going bankrupt and this reality is somehow kept a secret.  Why?  Because it means something has to be done.  The hard truth is that the Government must cut programs, raise taxes and reduce staff, all of which will result in a huge and understandable public outcry.  Unfortunately, the Government knowingly sits and waits and hopes that the problem will go away.  However, this strategy will only make matters worse.  I say that the time for action is now.”

Mr. Sheehan’s urgency parallels that of the Treasury report, which states that “avoiding the catastrophic consequences of this fiscal path will require action to bring program expenditures in line with the available resources.” 

Unfortunately, the solution is to raise taxes and cut programs.  According to U.S. Comptroller General David M. Walker, “our government has made a whole lot of promises in the long term it cannot possibly keep without huge tax increases.”  Americans have grown to rely on social programs for which the Government in its current state is unable to finance.  To continue to sponsor these programs, taxes will inevitably increase.

Mr. Sheehan continues, “I dislike taxes as much as anybody else.  However, taxes are the price of freedom.  I am stunned that the Office of Management and Budget’s financial report is not getting the coverage it deserves, especially when the very future of the United States of America is in jeopardy.”

Patrick T. Sheehan is a former IRS attorney and the principal of Patrick T. Sheehan and Associates, Attorneys at Law, P.C.  Mr. Sheehan’s practice focuses exclusively on assisting individuals and business with their tax disputes before the Internal Revenue Service and the Illinois Department of Revenue.  Patrick T. Sheehan and Associates is the largest tax dispute resolution law firm in DuPage County.