Budget Debt
The US Government spends more than it takes in just about every year. Here are the budget deficit numbers by year since 1932. If anyone wants to know why we have a budget problem in this country, all you have to do is look at the running debt clock. We are now at $21T in debt.! But, if big numbers alone don't get your attention, then lets put the $21T in perspective, it represents over 100% of GDP. The nation owed $10.6 trillion on Jan. 20, 2009, when President Obama was sworn in, and he doubled it – more than Bush piled up in two terms. There is bipartisan agreement that we cannot sustain this level of debt. There is also bipartisan agreement that we must correct the outflows exceeding inflows that drives the debt higher every second (see debt clock) . Everyone who manages a checkbook has seen this problem before and knows how to correct it - reduce expenses and increase income. Increasing revenues is critical to the solution, but will not have an immediate impact. Reducing expenses is also critical to the solution and can generate immediate impact. It is the only thing in your control instantly! Sequestration and government shutdown revealed that with immediate impacts in 2012 & 2013. Everything else we here about this subject beyond these two facts is just noise and should be ignored. The political left and right cannot agree on how to correct this problem. The left solution to our problem is to increase taxes on the rich to increase income. Currently the top 20% of income earners pays 80% of the federal tax burden. So do we want them to pay 100%? 110%? 120%? Maybe just write the check every year for the entire cost of government, whatever it is? Clearly this is not a solution. The right wants us to reduce spending and taxes, which was also a poor solution in a recessionary economy, but in a growing economy in 2017 has promise. But, the truth is we must do both (reduce expenses and increase income), we must do it now and it will not be easy. All the political hot air outside these two facts is simply a distraction from the difficult but obvious answer. Trump's tax law in Dec 2017 had an economic stimulation effect. A growing economy will usually increase income (tax revenues for the government) over the 10 years, but not immediately. The Trump tax reform due to money overseas that will be returning home, will have immediate positive revenue impacts. His military defense spending will have a negative national debt impact. To immediately begin to impact our budget deficit and debt problem whiling anticipating increased revenues we also must immediately and dramatically cut spending. That MUST include discretionary spending AND entitlements (Social Security, Medicare & Obamacare) which represent 90% of the problem. The left will say you are hurting education, the homeless, healthcare of all Americans, the elderly and on and on. The right will shout "we are already taxed enough". All This whining MUST be ignored. No one wants to hurt themselves, their families or their neighbors We have no choice but to intelligently make these difficult decisions while minimizing the pain. But there will be pain. And our representatives MUST ACT NOW. It is a dereliction of duty if they do not. The 2 year budget passed Feb 2018 does not do this. It was a purely bi-partisan negotiation (which is good) but gives everything to everyone and makes no tough decisions on spending. Below you can watch the ongoing debate on this critical issue. And hopefully see the solution we need develop. Then, in 2020, the COVID-19 pandemic arrives and budget busting, debt and printing money takes on historic proportions!

The issues Congress needs to keep front and center

11/27/23
from Heritage Action,
11/25/23:
Members of Congress ... will return to Washington on Tuesday, for three more weeks of legislating before their Christmas break. Here are the issues we need to keep front and center in their minds: Stop The Spend Trend In just over three and a half years, the federal government has added over $9 trillion in debt: a record rate of spending. This spending causes inflationary pressures that eat away at the fruits of our labor and threaten our economic stability. In August, the credit rating agency Fitch downgraded the U.S. credit rating, and last week Moody’s did the same thing. This problem will only get worse unless Congress stops the spend trend! Year after year, Congress has demonstrated that following a broken process will lead to broken results. The message from America should be clear: No more continuing resolutions, no more omnibuses, no more minibuses! For the sake of posterity, it is time for Congress to draw a line in the sand and reduce the current spending trajectory. Heritage Action’s toolkit outlines everything you need to know about the path toward fiscal sanity. H.R. 2 - The Only Border Solution In Fiscal Year 2020, U.S. border patrol encountered 405,036 illegal immigrants crossing the southern border. After three years of Biden’s open border policies, there were 2,465,669 illegal crossings in 2023. The House has taken action and passed the Secure the Border Act (H.R. 2), a comprehensive solution that:
  • Ends asylum fraud
  • Ends “catch and release”
  • Finishes the border wall
  • Increases Border Patrol resources and closes immigration loopholes
  • Mandates E-verify to ensure legal employment
But Senate Democrats refuse to vote on the House’s bill. However, public pressure is forcing the Senate to put forward their own “border proposal,” but it’s simply more money for the same failed policies. A side-by-side comparison makes it clear: The House-passed “Secure the Border Act” (H.R. 2) is the only real solution to the border crisis. More than money, border security and law enforcement agencies need to be allowed to do their jobs. H.R. 2 would close the loopholes and give them the tools they need to keep our border secure. Ukraine: Accountability for Spending President Biden is again requesting tens of billions more for Ukraine, and there are numerous problems with his latest request: As with all his previous spending in Ukraine, there is inadequate oversight and accountability for how this latest request for money would be spent. The Biden administration is still dodging valid concerns from the American people. No clear plan or timeline for success has been articulated. His latest request ties Ukraine spending to aid for Israel. But these are separate issues and deserve separate consideration (i.e., separate votes). Aid money to Israel should not be held hostage. Past Ukraine spending has gone beyond military and humanitarian needs, and Biden’s latest request continues to pay for things like the salaries of Ukrainian government employees. Heritage Action’s newest toolkit spells out all you need to know about Biden’s supplemental request and what the right path forward is. More From Heritage Action:


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