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 Omnibus Was Not About Aid for Ukraine

from The Gray Area:
The $1.5T Omnibus bill (the Consolidated Appropriations Act of 2022 (H.R. 2471)) passed the Senate last night and is headed for President Biden's signature. The bill was supposed to do 2 things, approve aid for Ukraine and prevent a government shutdown. It did three things, very badly. 1. It is touted as Aid for Ukraine. That is a lie. As The Wall Street Journal reports: The bill provides $13.6 billion in aid for Ukraine, including more than $3 billion for European Command operations mission support, the deployment of personnel to the region and intelligence support. The assistance also includes $4 billion in humanitarian aid, helping refugees fleeing Ukraine and providing emergency food assistance and healthcare. That is less than 1% for Ukraine! 2. So, what is the other 99%? Again, The Wall Street Journal reports: The omnibus delivers on some priorities of both parties, such as the increased funding for child care and climate resiliency sought by Democrats and higher military spending pushed by Republicans. It includes billions of dollars requested by individual members for projects in their districts, representing the first time in more than a decade that the earmarks have been employed. Earmarks totaled some $9.7 billion for almost 5,000 projects. The basic bill provides $730 billion in nondefense funding, a $46 billion increase over fiscal 2021, and $782 billion in defense funding, an increase of $42 billion, consistent with a principle both parties have aimed at in recent years of maintaining parity in spending increases for defense and nondefense spending. Breitbart reports the omnibus spending bill contains many leftist, woke, and climate change carve outs:
  • a provision that expands diversity, equality, and inclusion at the Office of the Director of National Intelligence.
  • funds “border security” for eight foreign countries, while including no new funds to construct a border wall along the United States-Mexico border.
  • spends over $100 billion on Green New Deal initiatives, and advance “racial justice” through Department of Agriculture programs.
  • contains $100 million for environmental justice activities at the Environmental Protection Agency (EPA) (8X as much as Ukraine Aid), and $75 million for low or zero-emission vehicles (6X as much as Ukraine Aid)
  • $26 billion in food stamp funding (twice as much as Ukraine Aid)
  • No protections from Chinese espionage in grants to the National Science Foundation
  • Increases National Institutes of Health (NIH) funding by 10 percent
  • Provides $66 million for the “Racial and Ethnic Approaches to Community Health (REACH), an increase of $8 million from last year(5X as much as Ukraine Aid).
Would you expect less in a 2,700 page bill! 3. This was also about funding the government by tonight to preventing a shutdown. Did we need all this spending to save the government? Of course, not. If the government doesn't have enough money to run, stop spending. But, instead, Congress spends more. On their political priorities. They say this is for Americans, but the truth is very different. Lunacy! Here is the list of Senators who voted for this spending bill. Every Democrat & 18 Republicans. None of them should have a job at the next opportunity. However, knowing that Manchin & Sinema were not going to help this time and that there were going to be zero Democrat votes against, the Republicans were going to lose 51-50. As such, these 18 Republican members could place a vote anyway they wanted. Which means with earmarks, they can get something out of it for their states.  So in fairness, it's a reason for their votes.  But, they should still have all voted against it, 50-50. They would still have lost withteh VP Harris vote, but would have sent a great message. This is wrong and must stop! More From The Wall Street Journal: More From United States Senate:

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