The United States is currently running an annual deficit of about one trillion dollars. The accumulated debt of the US is almost twenty-three trillion dollars on which we spend about $373 billion in interest.
In 2019 the combined earnings of all S&P 500 companies, America’s largest, is estimated to be $1.4 trillion.
US billionaires are estimated to have a total net worth of about $3 trillion dollars.
All that means that this year company earnings could pay our current deficit spending with just $400 billion left.
It also means that if we confiscated the 100% of the wealth of all US billionaires it would cover our current rate of deficit spending for about three years.
To cover our overspending for a few years, we would have to destroy our economy, the stock market and all the people who directly or indirectly depend on it … that’s you by the way.
And after three years or so we would be much worse off and our debt, deficit and unfunded liabilities would remain.
We have many new promises being made and still no resolution to making Social security sustainable. Tremendous debt and we still don’t adequately fund infrastructure.
We are living under an umbrella of fantasy. Our taxes are not sufficient to pay for what we have let alone what we are are told we should want. Even the tax the other guy strategy is insufficient.
Into this caldron we have calls for more spending of various sorts. Forgive student loan debt, pay teachers a minimum of $60,000, free tuition, M4A with generous benefits beyond that of other countries. $1,000 to each newborn to age eighteen, guaranteed minimum income, government paid child care, retroactively reinstate pension cuts in bankrupt union plans and I’ve probably missed a few.
But don’t just blame the politicians, their supporters want all this good stuff too. Just this morning I heard of a survey that found 53% of Americans want government to help with home down payments.
Sen Sanders likes to say we are richest country in the world, there is no reason we can’t afford …
Apparently we can’t afford the promises already made without using a very big credit card. Do Americans understand where government gets its money?
What seems to be missing from the rhetoric is that if you want to emulate other countries with extensive social programs, you must also accept their taxing strategies. Strategies that apply to all citizens, not just the “wealthy.”
We could start small copying other countries. Perhaps a 20% value added tax, raise gasoline to $7.50 a gallon and a 50% car purchase fee for gas engines. Then we could raise payroll taxes for pensions and health care to 12% of pay.
See, it’s fun doing what other countries with lots of free stuff do.