What happens when a country cannot collect enough taxes from its citizens to pay the interest on its debt?

Question

Our politicians have borrowed as of 02 Jul 2008.... $9,494,234,806,995.00

The estimated population of the United States is 304,279,236

so each citizen's share of this debt is $31,202.34.

The National Debt has continued to increase an average of

$1.75 billion per day since September 28, 2007!

If a family can't pay their payments their automobiles are reposessed, they are evicted from their home.

Someone tell me what happens when a country's interest on its national debt is more than its citizens can pay in taxes.

Answer 1

Don`t you know how conservative economics works? Tax cuts. Don`t you know tax cuts increase revenues. lol

Answer 2

Industrial and Technical economics are a new frontier of economic and social rules.  Note that more is being spent than will ever be collected in taxes.

Taxes are an accounting function to monitor domestic cash flow.  

Inept leaders have little or no understanding on effective taxation.  Re Taxation is the typical solution to monetary issues.  Individuals pay income tax on earnings and user fee taxes on the net income after federal and state taxes.  Collection of all the tax at federal level would eliminate secondary, tertiary, fourth level, fifth level, or beyond.

The extra collectors could be better employed at more innovative pursuits.

Fewer taxes more effectively spent would foster better accountability of all financial activity.

The debt is an accounting tool for what is being spent.

Answer 3

Well since Harry Reid says that paying taxe are voluntary....

Here is a video in wich he is being interviewed and claiming just that :

http://www.youtube.com/watch?v=R7mRSI8yW...

Answer 4

bankrupcy...just wait for that day.. just like those whi cant pay their mortgage, or pay their car loans....maybe someone is gonna come n buy the country

Answer 5

Um nothing happens. Most countries have been in debt for centuries. I think England just paid off one of its debts that somg King back in the day made.

Answer 6

The next step is to inflate the currency to near worthlessness to pay the debt with cheaper money. No, wait a minute, that's already happening in the U.S.

I guess we'll have to see how far they can push it before default on debt payments.

Answer 7

The country merely, and arbitrarily, borrows money from another country to pay off its debt.