Economic reality vs. candidate's rhetoric

WASHINGTON, Jan. 23 (UPI) -- Analysts say the next U.S. president may have to raise taxes and reduce benefits as healthcare costs soar and baby boomers retire in a stumbling U.S. economy.

The Brookings Institution, a Washington think-tank, said "the next President will inherit a fiscally lethal combination of changing demographics, rising healthcare costs and falling national savings."

The exposure of the middle class to the Alternative Minimum Tax, retiring baby boomers cashing in on Social Security and a mounting defense budget could send the U.S. deficit tumbling, the Christian Science Monitor said Wednesday.

"Without reforms in the near term, the dramatic increases in (entitlement spending) will ultimately require substantial tax increases, major benefit reductions or massive and unsustainable amounts of borrowing," a White House budget review said.

The presidential candidates face pressure to please their support base, with Democrats promising huge new government programs and Republicans promising lower taxes. But some analysts are skeptical.

"I don't think you're getting a lot of realistic rhetoric or plans from candidates overall," said Robert Bixby, with the budget watchdog group, the Concord Coalition.