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Best I can tell, FY2012 isn't final, hence FY2011 actuals.
I'm a lifelong fiscal conservative, but I watched some interviews with people demonstrating against big government and any tax increases last night. When they were asked which spending item they would cut for each category (Soc Sec, Defense, Medicare, etc.) they would NOT cut anything except foreign aid (150 international affairs) and congressional salaries (800 gen'l government). Those would hardly begin to reduce deficits.
OTOH, the only consensus item on the liberal side seems to be 'make the rich pay their fair share' and/or 'make corporations pay their fair share.' I won't argue those here, but the charts below show if you did nothing else you'd have to increase federal income taxes on the top 10% by 70% or increase corporate income taxes by 618% (or 7.18 TIMES) - and those taxes would be passed through to consumers.
And defense is often mentioned, understandably with two wars winding down. But no one (in their right mind) would completely gut defense, so defense isn't the whole answer either.
So what's the real answer (vs unfounded partisan sound bites)?
Best I can tell, FY2012 isn't final, hence FY2011 actuals.
I'm a lifelong fiscal conservative, but I watched some interviews with people demonstrating against big government and any tax increases last night. When they were asked which spending item they would cut for each category (Soc Sec, Defense, Medicare, etc.) they would NOT cut anything except foreign aid (150 international affairs) and congressional salaries (800 gen'l government). Those would hardly begin to reduce deficits.
OTOH, the only consensus item on the liberal side seems to be 'make the rich pay their fair share' and/or 'make corporations pay their fair share.' I won't argue those here, but the charts below show if you did nothing else you'd have to increase federal income taxes on the top 10% by 70% or increase corporate income taxes by 618% (or 7.18 TIMES) - and those taxes would be passed through to consumers.
Increasing corporate taxes will do nothing as it will only encourage them to use debt financing. Never use debt weight taxes. Only tax monopoly income which cannot be passed on to consumers.
Quote:
And defense is often mentioned, understandably with two wars winding down. But no one (in their right mind) would completely gut defense, so defense isn't the whole answer either.
So what's the real answer (vs unfounded partisan sound bites)?
Get a new life and become a private debt fiscal conservative instead. Cut regressive taxes on labor and any taxes on industry aside from FIRE sector before bothering to cut spending until unemployment hits 3%, and then begin cutting spending while increasing public deficits with industrial tax relief, all while raising interest rates and reserve ratios to keep inflation in check until bank credit is extinguished. That will free the economy of bank parasite interest overhead.
Then start over with bank credit only for industrial financing, but not tax deductible, and keep FIRE sector at no more than 5% of the total economy by using taxation on ground values.Reclassify buildings as capital and do not tax except for local use taxes on fire and police.
If that is partisan I'd like to know who so I could vote for them.
Anybody who has worked for or with the fed gov't can tell you story after story of waste, fraud and abuse.
There is very little oversight on spending.
EVERY program should be reviewed and scrutinized. A determination should be made, Is this program worth borrowing money to keep it going?
Most people are not aware that there are about 42 fed job training programs. What about the number of unoccupied buildings the gov't is renting (paying for utilities0 and are not using, as examples.
The only real long term solutions to solving national debt is by restructuring Medicare/cade and social security.
People think these two programs are expensive now, just wait till all the baby boomers start to collect.
All the other programs are small in comparison to the curent and future cost of the two above (though they still should be scrutinized for savings).
In before the your being racist or want to kill old people.
The actual liabilities of the federal government—including Social Security, Medicare, and federal employees' future retirement benefits—already exceed $86.8 trillion, or 550% of GDP. For the year ending Dec. 31, 2011, the annual accrued expense of Medicare and Social Security was $7 trillion. Nothing like that figure is used in calculating the deficit. In reality, the reported budget deficit is less than one-fifth of the more accurate figure http://m.us.wsj.com/articles/a/SB100...?mg=reno64-wsj
This is why I'm planning to never collect social security. It either won't be around or it will be means tested by the time I retire (I'm 28).
Last edited by shooting4life; 03-29-2013 at 02:43 PM..
The only real long term solutions to solving national debt is by restructuring Medicare/cade and social security.
People think these two programs are expensive now, just wait till all the baby boomers start to collect.
All the other programs are small in comparison to the curent and future cost of the two above (though they still should be scrutinized for savings).
In before the your being racist or want to kill old people.
The actual liabilities of the federal government—including Social Security, Medicare, and federal employees' future retirement benefits—already exceed $86.8 trillion, or 550% of GDP. For the year ending Dec. 31, 2011, the annual accrued expense of Medicare and Social Security was $7 trillion. Nothing like that figure is used in calculating the deficit. In reality, the reported budget deficit is less than one-fifth of the more accurate figure Cox and Archer: Why $16 Trillion Only Hints at the True U.S. Debt - WSJ.com
This is why I'm planning to never collect social security. It either won't be around or it will be means tested by the time I retire (I'm 28).
Basically this. Defense spending can come down 30%. In 2005 we were spending 5-600 billion and we are spending about 900 billion now. There is no reason the spending can't drop with the wars winding down. the rest needs to come from medicare and SS. The largest driver of debt is medicare, but no politician is willing to cut the program. Bush expanded the program with the Rx drug plan and didn't pay for it, so that doesn't help either. Exclude medicare and the budget is basically balanced.
Tax income - The dialogue is about raising rates. No one speaks of raising GDP. Tax revenue is constantly 16%-21% of GDP. So why not look to raise GDP? Get rid of nuisance regulation that stifle growth. Do what it takes to get more people working and increase the tax base instead of having to fund everything with half of the working population.
Spending - Obvious - cut it - everywhere. They all have waste. Government owns many empty buildings. Sell them. Quit funneling money to colleges in the name of research. Simplify the processes. Stop the working vacations on taxpayers' dime.
Just a brief answer.
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Defense spending can come down 30%. In 2005 we were spending 5-600 billion and we are spending about 900 billion now. There is no reason the spending can't drop with the wars winding down. the rest needs to come from medicare and SS. The largest driver of debt is medicare, but no politician is willing to cut the program. Bush expanded the program with the Rx drug plan and didn't pay for it, so that doesn't help either. Exclude medicare and the budget is basically balanced.
