So which is going up first - the price of bread and milk or taxes?

The Fed has raised the debt limit to 11 Trillion dollars. The real amount of debt is probably closer to 110 Trillion dollars when you consider unfunded liabilities like medicare, social security and future warfare.

I'm wondering if hyper-inflation will take ahold first or will people start crying murder when they start getting thier tax bills?

Any thoughts?

[edit on 21-9-2008 by In nothing we trust]

Milk and bread...so after you adjust they can increase income tax withholings in 2009 just so you can not have both milk and bread..."so let them eat cake"...now where have I heard that one before?

Just to be clear, the raise of the debt ceiling is still in a proposed bill, not law yet, but Congress is so fiscally irresponsible it's only a matter of time.

Anyway, if we do experience further inflation, seems quite likely but I'm no expert, I'd say prices will be affected before Congress draws up the new tax rates.

What happens when people quit paying taxes? Excise taxes,federal fuel taxes,sales taxes? The Government has to find more money.Raise income taxes,property taxes,inheritance taxes.Soon enough it won't matter if bread is $.25 and milk is $1.00 a gallon.If all you make goes to pay taxes you can't afford to eat anyway.