Government

Let’s do the math

The richest Americans have a net worth of about three trillion dollars.

Compare that with the current annual deficit of $1,000,000,000,000 and a national debt of $22,000,000,000,000. The total US unfunded liabilities is estimated at $124,000,000,000,000. That’s the difference between the total projected cost of all government promises and the money put aside to pay for them.

Obviously, sooner or later the money must come from taxes. Currently the top 10% of earners pay about 69.47% of all income taxes

So, we have significant financial issues to address …but instead of doing so, we hear about more. More government spending, more long-term liabilities. And, if stated at all, how we will pay for more is implied to be through higher taxes on the wealthy. That can’t happen. Countries such as the Scandinavian countries that provide a high degree of social programs have high taxes on all citizens. For example, 24% to 25% value added taxes (VAT) a form of sales tax. That’s higher than all but Hungary in Europe. They also have high income taxes, payroll taxes and special taxes such as on buying a car. And yet some American politicians have the audacity to use “free.”

Sooner or later, one way or the other, the cost of all the promises made and being made will be paid by all Americans. And yet there are proposals to lower taxes on the middle class.

Sen Sanders wants to wipe out student loan debt at a cost of $1,600,000,000,000, more than half the net worth of Americans richest 400 people. At the same time Sen Warren wants a wealth tax.

Of course the big promises being made are Medicare for All, increase Social Security benefits and free college. But what about the Social Security and Medicare trusts being depleted? Where does that fit in?

The current candidates have an array of ideas most requiring higher taxes or greater deficit spending. 😥

A $1,000 monthly check sent to every American over 18, so they can pay their bills as robots take over jobs.

The LIFT Act, a working- and middle-class tax cut akin to the Earned Income Tax Credit that she says will provide up to $500 a month to families. To pay for it, she wants to reverse Trump’s 2017 tax cuts for corporations and the wealthy

Pay $10 billion in slavery reparations every year for 10 years to the African American community.

A “baby bond” program that would give every child a US Treasury bond at birth, with a larger amount for poorer kids. He would also propose guaranteeing a $15 minimum-wage job in 15 test areas.

Cut taxes on small businesses and farmers, raise them on corporations; lower military spending by ending regime-change wars and reducing the acquisition of nuclear weapons.

A “wealth tax” of 2% on net worth over $50 million and 3% over $1 billion designed to raise $2.75 trillion over a decade.

Sanders would like to make public colleges tuition-free, increase Social Security benefits, and make corporate America more union-friendly. Sanders has proposed paying for the tuition costs by taxing financial transactions and the Social Security expansion by subjecting all incomes above $250,000 to the 6.2% payroll tax.

Require that companies adopt a universal paid parental leave policy

Cancel the US’s $1.5 trillion in student debt, calling it a “moral issue,” and a hurdle that prevents economic mobility in the country. He would also rescind Trump’s tax cut on corporations and the wealthy.

Expanding access to college by providing interest-free federal loans, allowing employers to make tax-free contributions to pay off their employees’ student debt and helping those in work-study programs graduate without owing anything.

Increase public protections of jobs and benefits to help make the employment market more dynamic without the fear of personal debt tied to college loans and medical bills.

Biden Institute is pushing tech education and increased bargaining power for American workers as a solution to the left-behind working and middle class.

Medicare X, which he calls a “true public option” for healthcare, that bridges the gap between Sanders’ “Medicare for all” plan (which he calls unrealistic) and private healthcare.

Cut taxes for the middle class, raise corporate tax.

Tackling working-class poverty by fighting stagnant wages, offering skills training, and encouraging financial literacy.https://qz.com/1536793/your-guide-to-the-2020-democratic-presidential-candidates/

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3 replies »

  1. Our politicians are just plain CRAZY = Doing the same thing and expecting different results. The credit card nation is bankrupt already, the numbers prove it. Congress needs to get it’s act together, but I think it may be too late.
    Why not take a hard look at all government spending and cut some of it out, or at least not add each and every line item. New programs have to be funded by new taxes on everyone, even people who get food stamps, so they can realize, nothing is free. We need to stop all corporate welfare, let companies make it or fail in the market. As far as student loans, they need to be dischargeable in bankruptcy court, just like all other debt, no taxpayer bail out. Everyone should have to pay a minimum 10% tax on their income before deductions then the government would not have to borrow 1 Trillion Dollars every year. I remember paying 17% on $6,500 = $1,105 of taxable income back in 1980. I managed just fine because I did not have any credit card debt. No one should pay zero federal income tax.

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  2. For a current soberring report (June 2019) from the Congressional Budget Office download the report from https://www.cbo.gov/system/files/2019-06/55331-LTBO-2.pdf

    It is predicted that the budget deficit will be 144% of GDP by 2049 and possibly as high as 219% if Congress continues on the current path. This does not take into account dozens of the proposals by the democrat want-a-bees. It is predicted that the federal spending will increase 7.5% just by maintaining the status quo and that’s with no new programs and with some expiring. The blob is growing and is taking over. I think several movies have been made on the blob.

    I guess the first place we could save money is to get rid of the CBO because it is obvious that Congress doesn’t read their reports nor acts on them.

    As much as people like to blame Trump or any other president, it is Congress’s fault. They pass the budget bills.

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