How often have you heard references to government payments or government subsidies or the government owes us or something government requires to be “free.” I suspect in the political battles to come we will be hearing “government” a great deal more.
To make these discussions more honest and more transparent I suggest we now substitute American Taxpayer for government. That way when we are discussing spending more, or taking on more long-term liabilities, we will know who will actually be taking on these obligations.
Government pays for nothing, current and in many cases future taxpayers do. There is no such thing as government debt, it’s American Taxpayer debt currently at $62,000 per citizen; that’s closing in on $20,000,000,000,000. There is no such thing as government interest payments, American Taxpayers pay over $300,000,000,000 a year in interest payments, $98 billion of that to the Social Security Trust. [with historically low interest rates]
The “government” is still spending nearly $600,000,000,000 more each year than it collects in all forms of taxes and revenue even while Social Security and Medicare are on track to insolvency. Oh I forgot, government is spending all that because that is what the American Taxpayer wants it to do, right?
And who is the American Taxpayer? The short answer is fewer and fewer citizens. There are about three million fewer Americans in the workforce than in 2000 and nearly 16,000,000 more not in the labor force than in 2000 (including retired).
Look at the chart below and consider it when you hear all the rhetoric about fair share. Note the disproportionate amount of taxes paid by a relatively small portion of taxpayers.
Let’s agree, there is no such thing as government spending or debt, it’s all ours and our children’s and their children’s obligations which will consume an ever-growing portion of our discretionary income.
NOTE: All these are number are federal government related. Just think what your debt share is for your state.