One of the great protest songs from the late 1960s was Barry McGuire’s “Eve Of Destruction.” The song came to mind recently while reading an associated Press (AP) bill describing President Obama’s 2011 Federal price range. His proposed budget calls for a record-breaking spending level of $3.8 TRILLION and a one year deficit of $1.56 1e+12.
In other words, his budget will require the Federal government to spend almost 70% more than the expected tax revenue it consign collect. Obviously, the government will postulate to take money from any individual or nation who will lend it to us, foundering the country’s financials deeper into debt. pressure order to cover this revenue shortfall. Further, he expects the paucity to “shrink” to just under $1.3 TRILLION the next fiscal year.
Let’s do some simple math:
– If each U.S. household had to pay for the $1.56 TRILLION deficit, the cost per household would come to about $12,000 consistent with household. This would typify above and past the taxes needed to cover the non-deficit element of the price range.
– If we look at last year’s deficit level, this year’s deficit level, and the proposed deficit for the next two years, the political class in washington is expected to overspend its tax collections by about $5.7 TRILLION. On a per household basis, this comes to about $44,000 in keeping with household.
– The Obama administration has proposed to freeze spending levels prominence some federal government areas, claiming that this action will save about $250 billion thanks to the budgeted ten years, or approximately $25 billion according to year. If those savings ever materialize, the $100 billion rate reductions over 4 second childhood would result in each American household theoretically obtaining again $769 in savings. The $769 in savings represents less than 2% ($769/$44,000) of the additional taxes that are going to be required at some point to pay for the deficit spending of Washington.
– Many U.S. household will not even conserve this much since chief Obama’s budget idea calls for letting the so-called Bush tax cuts expire when they come up because renewal.
– The deficit cost owing to the next decade, according to the proposed budget, would be about $8.5 TRILLION. If you count in the $2.8 TRILLION deficits from the past year and this year, the total deficit spending of the political class could speak for $11.3 1e+12 or a whopping $87,000 per family. Since the government is infamous because underestimating costs, this $87,000 thought is probably understated.
– A favorite tactic of the political class is to try and restrict tax raises to the so-called