“Healthcare and the 2007 fiscal year federal budget

My last post dealt with the 1992 fiscal year budget for the federal government. Fast forward 15 years to the 2007 fiscal year budget for the federal government. The following information including the above pie chart is from page 91 of the 2008 1040 Instructions booklet published by the federal government Cat. No. 11325E. The federal government’s 2007 fiscal year runs from October 1, 2006 through September 30, 2007. The government reduced the amount of information provided in 2007—not discussing the different income categories and only briefly discussing four of the six outlays categories. The information as given in the booklet:

“Major Categories of Federal Income and Outlays for Fiscal Year 2007

On or before the first Monday in February of each year, the President is required by law to submit to the Congress a budget proposal for the fiscal year that begins the following October. The budget plan sets forth the President’s proposed receipts, spending, and the surplus or deficit for the Federal government. The plan includes recommendations for new legislation as well as recommendations to change, eliminate (almost never happens—my addition), and add programs (almost always happens—my addition). After receipt of the President’s proposal, the Congress reviews it and makes changes. It first passes a budget resolution setting its own targets for receipts, outlays, and the surplus or deficit. Next, individual spending and revenue bills that are consistent with the goals of the budget resolution are enacted. (Or, the President proposes and the Congress disposes. Congress is the Constitutional body that determines the amount collected and the amount spent—not the President!—my addition)

In fiscal year 2007 (which began on October 1, 2006, and ended on September 30, 2007), federal income was $2.568 trillion ($2,568,000,000,000—my addition) and outlays were $2.730 trillion ($2,730,000,000,000—my addition), leaving a deficit of $0.162 trillion ($0,162,000,000,000—my addition).

[Notice: The federal government discussed the 1992 fiscal year budget in terms of billions of dollars. Now, the discussion is in terms of trillions of dollars. In fifteen years the budget INCOME increased from $1,090,500,000,000 to $2,568,000,000,000—a 235.488% increase in income in 15 years. In fifteen years the budget OUTLAYS increased from $1,380,900,000,000 to $2,730,000,000,000—a 197.697% increase in outlays in 15 years. Thus, even though federal income increased significantly over 15 years, federal spending increased to an even greater extent in dollar terms. And yet, the yearly deficit decreased. The deficit in 1992 was $0,290,400,000,000 and “just” $0,162,000,000,000 in 2007

$2,730,000,000,000 Total Federal outlays MINUS
$2,568,000,000,000 Total Federal income

$0,162,000,000,000 in the red for fiscal year 2007—my addition.]

Footnotes for Certain Federal Outlays

1. Social security, Medicare, and other retirement: These programs provide income support for the retired and disabled and medical care for the elderly.

2. National defense, veterans, and foreign affairs: About 20% of outlays were to equip, modernize, and pay our armed forces and to fund the Global War on Terror and other national defense activities; about 3% went for veteran benefits and services; and about 1% went for international activities, including military and economic assistance to foreign countries and the maintenance of U.S. embassies abroad.

3. Physical, human, and community development: These outlays were for agriculture; natural resources; environment; transportation; aid for elementary and secondary education and direct assistance to college students; job training; deposit insurance, commerce and housing credit, and community development; and space, energy, and general science programs.

4. Social programs: About 13% of total outlays were for Medicaid, food stamps, temporary assistance for needy families, supplemental security income, and related programs; and the remaining outlays were for health research and public health programs, unemployment compensation, assisted housing, and social services.”

Some observations:

1) The 2007 fiscal year federal budget which begins in October of 2006 and runs through September of 2007 was the last federal budget that was passed by a Republican controlled Congress with a Republican President. The Democrats gained control of both Houses of Congress in the November 2006 elections. Congress writes (or rewrites) and passes the federal budget.

2) Comparing the percents of income received and income spent in 2007 as compared to 1992 leads to the following on the income side of the budget:

A) individual income taxes:
individual income taxes in 1992 was 35%
individual income taxes in 2007 was 43%
The % of individual income tax collected increased significantly by 8%.

B) social security, Medicare, unemployment, and others
social security, ect. in 1992 was 30%
social security, ect. in 2007 was 32%
The % of social security and others collected increased by 2%.

C) corporation income taxes
corporation taxes in 1992 was 07%
corporation taxes in 2007 was 13%
The % of corporation taxes collected increased significantly by 6%.

D) excise and other taxes
excise and other taxes in 1992 was 7%
excise and other taxes in 2007 was 6%
The % of excise and other taxes collected decreased by 1%.

E) Money borrowed to cover budget costs
Money borrowed in 1992 was 21%
Money borrowed in 2007 was 06%
The % of money borrowed significantly decreased by 15%.

3) Comparing the percents of income received and income spent in 2007 as compared to 1992 leads to the following on the outlays side of the budget:

A) Social security, Medicare, and other retirement
The % of social security and others in 1992 was 33%
The % of social security and others in 2007 was 38%
The % of social security and others outlays increased by 5%. Thus, not only did the total amount of expense for social security and others increase significantly but the % spent in relation to amount collected also increased. The amount collected increased by only 2% while the amount spent increased by a larger 5%. The deficit between the amount collected and the amount spent increased in both dollar amount and also by a larger percentage difference.

B) National Defense, veterans, and foreign affairs
The % of national defense and others in 1992 was 24%
The % of national defense and others in 2007 was 23%
The % of national defense and others outlays decreased by 1%. Thus, even with the War on Terror and two conflicts being fought, the % of the federal budget spent on national defense actually deceased from fifteen years previously. How did that happen?

C) Social programs
The % of social programs in 1992 was 17%
The % of social programs in 2007 was 19%
The % of social programs outlays increased by 2%. Thus, the % spent on social security, Medicare, and other retirement and social programs now account for 57% of the total national budget—increasing by 7% from 1992 when it was 50%.

D) Net interest
The % of net interest in 1992 was 14%
The % of net interest in 2007 was 09%
The % of net interest outlays decreased by 5%. Thus, although the amount of net interest spent has increased in dollar terms, the % has decreased as a total amount of the federal budget. We have increased our spending significantly in the area of social security and others and social programs.

E) Physical, human, and community development
The % of P, H, & CD in 1992 was 10%
The % of P, H, & CD in 2007 was 09%
The % of P, H, & CD outlays decreased by 1%. The change seems not to be very significant as a percentage change.

F) Law enforcement and general government
The % of law enforcement & government in 1992 was 02%
The % of law enforcement & government in 2007 was 02%
The % of law enforcement and general government outlays remained the same.

In summery, both national defense, veterans, and foreign affairs spending and physical, human and community development spending decreased by 1% over the last fifteen years as a % of the total federal budget. Spending on net interest decreased by 5%. Law enforcement and general government stayed the same. Social security, Medicare, and other retirement and social programs increased by 7%.

Yet, the federal government believes it is necessary to spend even more money to take control of and “save” healthcare from the clutches of the evil free enterprise system. Given our past experiences of the federal government “saving” us through previous programs, just how confident are you that the government will “save” us by taking control of healthcare? But wait, President Barack Hussein Obama has promised us “change you can believe in.” If you believe in MORE government control and MORE taxes and MORE deficits, and MORE rationing, you will receive “change you can believe in!”

The fiscal year 2007 budget deficit—$0,162,000,000,000 in the red. The projected deficit for the fiscal year 2009 budget after 2+ years of a Democratic controlled Congress and approximately 7 months of a Barack Hussein Obama Administration—$1,500,000,000,000 in the red! Over a TRILLION dollars more!!! CHANGE that you can BELIEVE in?!?

Do you STILL believe that NONSENSE?

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