Wednesday, January 23, 2013

A Brief Summary of The Federal Budget

If we want to balance the budget by raising taxes alone, then we need to double all taxes paid to the federal government.

2011 revenues: $2,303,466,000,000
2011 expenditures: $3,603,061,000,000
2011 budget deficit: $1,326,948,000,000

Federal spending on Social Security, Medicare, Medicaid, unemployment, and Obamacare alone exceeds all federal revenues.

2011 Total revenues: $2,303,466,000,000
2011 Human resources expenditures (Obamacare yet to come): $2,414,738,000,000

Multiply the amount of money you pay to the government by 1.5 and eliminate Medicare, Medicaid, and Obamacare and then we could have a responsible balanced budget.

That's a 50/50 raise revenues/ cut spending plan.  Noting short of that will be meaningful.

Prepare for the bills to come due.

BTW, the "fiscal cliff" negotiations did not result in doubling all taxes paid or reducing Social Security, etc spending and were therefore meaningless.

Next time the politicians start talking about "fiscal cliffs" or "debt ceilings" understand that they are doing nothing, even if either side got all of what they want.

No comments:

Post a Comment