my thoughts on taxation – government spending – budget deficit – US living standard

Posted on February 24, 2010 by

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Let’s talk about Government spending!  What do they do with our hard earned money?  Are we better off or worse off?

ROBERT BRUSCA, CHIEF ECONOMIST, FACT AND OPINION ECONOMICS, NEW YORK

“The President is very confused. He wants to speak about austerity but there is this budget bulge. I’m very skeptical.”

The Budget of the United States Government is the President‘s proposal to the U.S. Congress which recommends funding levels for the next fiscal year, beginning October 1. Congressional decisions are governed by rules and legislation regarding the federal budget process. Budget committees set spending limits for the House and Senate committees and for Appropriations subcommittees, which then approve individual appropriations bills to allocate funding to various federal programs.  If approved by congress, the President may then sign it into law, and that’s why it is so important to VOTE.  We’re letting a group of people, frankly a total bunch of strangers decide of what to do with our hard earned money!

This morning around 9 am, walking into work in Washington DC, a drunken homeless man approached me and asked me for one dollar.  I politely declined, and then it hit me: if I won’t part ways with one dollar, because I know the drunken man would end up going to buy more booze and it would exacerbate his current situation, why do the American people give a bunch of strangers in suits so much money every year just so they can exacerbate our economic woes even more?  Unfortunately most people don’t know the figures.  According to the budget summary tables published on the white house website (http://www.whitehouse.gov/omb/budget/fy2011/assets/tables.pdf), the American people paid 915 billion dollars to the federal government in 2009, will give the federal government 951 billion in 2010, and the “greedy bastards” want more, they’re expecting to receive 2.1 trillion dollars in the year 2020 in individual income tax revenue. Please note that I am only referring to individual income taxes! In these figures are not included social security payroll taxes, Medicare payroll taxes, excise taxes, estate and gift taxes, customs duties, and the list goes on and on…

When I see these numbers, I ask myself just like my readers probably will: “what do they do with all this money?”  The answer:

  • Appropriated (discretionary) programs (security/non-security)
  • Mandatory programs
    • Social security
    • Medicare
    • Medicaid
    • Troubled Asset Relief Program (TARP)
    • Other mandatory programs (Temporary Assistance for Needy families also known as welfare, etc…)

 

In my previous blog, I mentioned how social security has contributed to lower the living standard in the US.  Social security crowds out private savings, and when you take into account declining fertility rates in the US, you can be sure that either they’ll increase our taxes even more or they’ll cut future retirees benefits…either way you look at it, we get to old age and we are simply poorer!!!

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