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!

What in this $1.5T do we really need?

from The Gray Area:

One thing, we need to keep the government from shutting down Friday, that's it. Nothing else!

Congress' incompetence and dereliction of duty has put us in this position, time and time again. They need to do a real annual budget, but haven't for two decades. Their failure does not create a fake emergency so they can spend trillions of dollars of special projects (142 earmarked for Schumer alone).

We don't need more COVID, IRS, green energy, and abortion spending in a 2,700 page bill to stop a government shutdown. This is a one pager, period! In this inflationary time the last thing we need is more frivolous spending and money printing in the financial system.

Unfortunately all we have left is to do another 'continuing resolution'. If done right it would include a commitment to pass a budget by June. But, the Democrats control congress and no way they would make that responsible commitment. And, many Republicans wouldn't either. That level of incompetence is why we are here.

To the United States Senate, which only means liberal Republicans, Manchin & Sinema, don't get sucked in by the Ukraine slight of hand, say no to this monstrosity.

from The Wall Street Journal,

The House passed a $1.5 trillion spending bill that includes emergency aid for Ukraine, after Democratic leaders stripped out a contentious Covid-19 aid provision that would have clawed back states’ unused coronavirus money to fund the proposal. The decision to remove the $15.6 billion in Covid-19 aid was a dramatic setback for both House Speaker Nancy Pelosi (D., Calif.), who negotiated the plan only to see many rank-and-file Democrats reject it, and President Biden, whose administration originally asked for $22.5 billion to fund vaccines, treatments and research and now will get nothing. Lawmakers released the more than 2,700-page omnibus spending package early on Wednesday, giving lawmakers just hours to read it. To pass the House, leadership divided the bill into two parts: The defense portion of the bill passed in a 361-69 vote, and the nondefense portion of the bill passed in a 260-171 vote. The bill now heads to the Senate.

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