Government

Federal deficits and you. What will you give up or how much more will you pay in taxes?

The following is a statement from Maya MacGuineas, president of the Committee for a Responsible Federal Budget:

Deficits are rising – and fast. In as soon as a year, they will top $1 trillion and never come back down unless Congress acts. This year’s deficit amounts to $6,200 per household and is more than we spend each year on Medicare or defense.

Interest on the debt rose by $62 billion over the previous year to $325 billion, which amounts to twice as much as we spend on the Departments of Transportation and Homeland Security combined. Under current projections, annual interest payments on the debt could top $1 trillion by 2030.

So, we have dug ourselves a nice big hole. We need to spend less or raise more revenue (and keep in mind none of the above includes the deficits and debt of the various states).

Senator Sanders likes to say as the richest country on earth we should be able to spend more on healthcare, Social Security and more. That’s like saying the family with the largest house and most expensive cars is the richest on the block disregarding all they own is on credit with no savings.

Our challenge is to get our deficits and debt under control and then …

Assure Social Security is sustainably solvent

Assure Medicare is solvent

And if we accomplish all that, we can address:

Medicare-for-all

Increase Social Security benefits

Provide free college tuition

Now, the question is what will you give up or how much more will you pay in taxes?

To make Social Security 75-year solvent requires an increase in payroll taxes by 2.78 percentage points. To make just the Medicare Hospital Insurance Trust solvent requires an increase of 1.71 percent of taxable payroll. These two trusts are just the starting point dealing with non-discretionary spending.

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2 replies »

  1. Ross Perot is why we had 8 years of Bill Clinton. That was a mistake. Thankfully, he got off to a poor start and lost control of the House (a 54 seat swing) and Senate (9 seat swing) in 1994. His efforts at triangulation followed, and, we can say, with certainty, that he (and the republican controlled house and senate) succeeded in moderating federal spending.

    In terms of what am I willing to pay? Nothing, nothing, nothing. Over the past 50+ years, I have been paying in FICA, FICA-MED and federal, state and local income taxes (plus property taxes, sales taxes and other fees) that substantially and dramatically exceed my proportionate cost to fund required federal spending (defense), and entitlements – Social Security, Medicare, etc.

    I am still working and paying. A lot. However, to fill the gap, it is someone else’s turn.

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  2. The sad part is that these three new or expanded programs listed here are only what the social-crats are currently talking about in order to buy votes and to crate a dependant welfare state. It totally ignores our deficit. Totally ignores other programs already in place. Totally ignores the things that the government must provide such as repairing 10% of America’s bridges before they fall down. Without good roads, goods and services will cost more than any tax placed on all Americans.

    If the social-crats want to start a new open-ended costly program, they could start with climate change. Over regulation will not stop the Earth from warming because it has been warming since that last ice age, but spending money on figuring out what to do with the 40% of the population that lives near a coast at sea level might be a better use for money we don’t have. I guess since Al Gore failed during his election bid that the social-crats dropped climate change as a way to buy votes.

    All the free college in the world will not stop the oceans from raising in the next 100 years or stop people from getting old. But not controlling the deficit can directly affect the 85% who are not over the age of 65 now.

    I miss Ross Perot and his budget deficit charts.

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