If we’re right (see the link for the tool and numbers behind it), we can expect the maximum personal income tax rate will be increased from 35% today to 70% by 2010 or no later than 2011. This rate could be lowered to 65-66% in the longer term, provided economic growth follows what the trustees of Social Security have forecast. If not, then expect higher tax rates.

Alternatively, the government could keep income tax rates lower than that 70% level by imposing other taxes aimed more at those earning between $20,000 and $70,000 (that’s the income range where most of the money is in the U.S.).

I should also point out that the figures Blodget quotes Bernanke saying in his article don’t appear to include intergovernmental transfers (debt held by Social Security’s OASDI trust fund, etc.) With those taken into account, the projected debt-to-income ratio for 2009 will be around 96.5% in 2011, not the 70% figure Bernanke cites. So, yes, the total outstanding debt picture is somewhat bigger than he’s presenting.

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BR: I am compelled to point out that we are coming off of an 8 year period of horrific spending, unfunded tax cuts, and flipping a surplus into a deficit.

This is why I aman independent — the GOP is as bad, if not worse, than the DEMs. Choose your poison: Tax Cut & Spend, or Tax & Spend.