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AnimusRex -> RE: Obama Takes On The Deficit (11/14/2009 10:22:20 AM)
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quote:
ORIGINAL: Sanity
You don't seem to understand where the money to fund the budget has to come from. If we raise taxes now we kill the goose, which is already desperately ill. The only real solution is to cut the budget to the bare bone and do everything we possibly can to get out the way of American businesses, both large and small - and then as business blossoms and grows, simply watch as the budget take care of itself.
Ok, lets take a look at the real numbers.
I base my conclusions on WallStats- its a great graphic look at the US Budget.
http://www.wallstats.com/deathandtaxes
First, the basic facts:
The total income for the fiscal year 2010 federal government is $2.333 Trillion. The total spending is $3.591 Trillion. The budget deficit then, stands at 1.405T, or more than a third of the total budget.
Of the $3.591 Trillion, 1.421 Trillion is discretionary, able to be cut. The remaining $2.17 Trillion goes for Social Security, Medicare/ Medicaid, interest on the debt, and so forth. The biggest portion of this is Social Security/ Medicare/ Medicaid accounting for about $1.3 Trillion of the $2.17 Trillion.
The federal discretionary budget for FY 2010 is $1.421 Trillion; It is broken down into military spending $901 Billion (62%) and non-military $520 Billion (38%).
In other words, if you take away Social Security, Medicare, and Defense, you only have $520 Billion, which funds EVERYTHING ELSE THE GOVERNMENT DOES. Department of Agriculture, State, Energy, Education, Interior...everything you imagine the government does is done for $520 billion.
So even if we shut down the entire federal government- shut the doors, turned off the lights, sent everyone home- we would only be cutting about 1/3 of the deficit.
This is why I say it is mathematically impossible to balance the budget without cutting Defense, SS or Medicare. Or raising taxes.
But what about growing the economy? Ok, lets look at that.
Lets assume we have a robust economic growth of 10%; This would raise revenues from $2.1 Trillion to $2.3 Trillion.
Subtract $3.5 Trillion in spending and what do you get?
Massive deficits still.
Lets do this- lets put together a "Conservative" budget. One that is balanced, and fiscally responsible.
Here is the template:
FY 2009
Revenue: $2.1 Trillion:
Social Security/Medicare: $1.3T
Debt Service: $800 B
Defense: $900B
Everything else: $520B
Total: $3.5T
Deficit: ($1.4T)
So using the template, plug in your desired numbers, and play "Balance the Budget Game!"
FY 2010
Revenue: $2.3 Trillion (assuming your growing economy);
Social Security/Medicare:
Debt Service:
Defense:
Everything else:
Total: $2.3 Trillion (This must balance)
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