The federal government IS a SPENDOHOLIC!!!
Tucked away in the 2010, 1040 Tax Booklet on page 97 are two pie graphs showing the revenue collected and borrowed by the federal government and the expenditures of the federal government for fiscal year 2009 which began in October of 2008 and ended in September of 2009. Of course, we are currently in the fiscal year 2011 budget. President Obama has sent to Congress the proposed fiscal year 2012 budget and the House of Representatives has already passed its own proposed budget for 2012.
From: 2010, 1040 Tax Booklet, page 97
“Major Categories of Federal Income and Outlays for Fiscal Year 2009”
In fiscal year 2009 (which began on October 1, 2008, and ended on September 30, 2009), federal income was $2.105 trillion and outlays were $3.518 trillion, leaving a deficit of $1.413 trillion.
Income Outlays
1) Borrowing to cover deficit 40%
Amount borrowed: $1,413,000,000,000 = one trillion, four hundred thirteen billion dollars
2) Personal income taxes 26%
Amount from personal income tax: $914,680,000,000 = nine hundred fourteen billion, six hundred eighty million dollars
3) Social security, Medicare, and unemployment and other retirement taxes 25%
Social security, etc. taxes: $879,500,000,000 = eight hundred seventy nine billion, five hundred million dollars
4) Excise, customs, estate, gift, and miscellaneous taxes 5%
Excise, etc. taxes: $175,900,000,000 = one hundred seventy five billion, nine hundred million dollars
5) Corporate income taxes 4%
Corporate income taxes: $140,720,000,000 = one hundred forty billion, seven hundred twenty million dollars
Total taxes collected: $2,110,800,000,000 = two trillion, one hundred ten billion, eight hundred million dollars (Difference due to rounding.)
NOTE:
$2,110,800,000,000 = amount collected in taxes
$1,413,000,000,000 = amount borrowed (increase in national debt!)
$3,518,000,000,000 = total spending
(The amount of taxes collected and amount borrowed do not equal total spending due to rounding.)
Outlays
(The percentages for outlays do not total 100% due to rounding.)
1) Social security, Medicare, and other retirement 34%
Social security, Medicare, and other retirement: These programs provide income support for the retired and disabled and medical care for the elderly.
$3,518,000,000,000 = total spending
$1,196,120,000,000 = amount for social security etc
That is, one trillion, one hundred ninety six billon, one hundred twenty million dollars (NOTE: the amount taken in in taxes for this same specific category is “Social security, etc. taxes: $879,500,000,000 = eight hundred seventy nine billion, five hundred million dollars” leading to a deficit in this category of -$316, 620,000,000. That is, the deficit in this category is over three hundred sixteen billion dollars!
2) National defense, veterans, and foreign affairs 22%
National defense, veterans, and foreign affairs: About 18% of outlays were to equip, modernize, and pay our armed forces and to fund national defense activities; about 3% were for veterans benefits and services; and about 1% were for international activities, including military and economic assistance to foreign countries and the maintenance of U.S. embassies abroad.
$3,518,000,000,000 = total spending
$0,773,960,000,000 = amount for national defense etc
That is, seven hundred seventy three billion, nine hundred sixty million dollars
3) Social programs 21%
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.
$3,518,000,000,000 = total spending
$0,738,780,000,000 = amount for social programs
That is, seven hundred thirty eight billion, seven hundred eighty million dollars
4) Physical, human, and community development 15%
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.
$3,518,000,000,000 = total spending
$0,527,700,000,000 = amount for Physical, human, and community development
That is, five hundred twenty seven billion, seven hundred million dollars
5) Net interest on the debt 5%
$3,518,000,000,000 = total spending
$0,175,900,000,000 = amount for interest on the debt
That is, one hundred seventy five billion, nine hundred million dollars just in interest payments!!!
This amount would be even higher if interest rates weren’t at historically low rates. The problem is, extremely low interest rates help the federal government in keeping its cost lower but the same low interest rates is a form of stealing from we, the people who are savers. Since savings income is at such a low rate, it discourages traditional savings [encourages hoarding in such forms as gold and art collections] and decreases the amount of taxes collected on savings income.
6) Law enforcement and general government 2%
$3,518,000,000,000 = total spending
$0,070,360,000,000 = amount for law enforcement etc
That is, seventy billion, three hundred sixty million dollars
NOTE that the federal government borrowed 40% of ALL the money spent. Let’s simplify the spending problem involved in this budget. If a household had an annual income of $60,000 (sixty thousand dollars) and spent $100,000, that household would have to borrow $40,000 to spend that much money. That household has then borrowed 40% of the money it spent. If that household continued to do that year, after year, after year; what would be the result?
The House of Representatives recently cut the fiscal 2011 budget by 61 billion dollars. [This cut, of course, did not pass the Senate. The compromise was $38 billion dollars in vastly different areas than originally intended.] Using the figures for total expenditures for 2009 which is lower than the total expenditures that will occur for the 2011 budget, what kind of cut would this had been?
It would look like this: $61,000,000,000 divided by $3,518,000,000,000 = .0173. That’s right! A 61 billion dollar cut in the fiscal year 2011 budget is a cut of LESS than 2%. A cut of less than two percent of a budget that will borrow over 40% of the money spent. That’s not even a drop in the bucket in comparison to what NEEDS to be cut from the budget.
And yet, all you heard from the Democrats were complaints about the extreme and excessive cuts! Are they serious! WE need to CUT much more of the 2011-2012 proposed budget. NO ONE, not even nations, can continually spend more than earned, collected without major, detrimental consequences.
Spending above income may have TEMPORARY, SHORT TERM benefits for economic growth. However, the long term harm IS devastating. If a person or a nation could borrow itself out of debt, we should finance all of government by borrowing. That, of course, is NONSENSE!!! There is an old saying, pay me now or pay me later. To wait, to procrastinate, to borrow even more is to multiple the ultimate PAIN!!!
WE MUST stop borrowing! WE MUST stop spending more than we have! It will only stop if demanded by we, the people!! An alcoholic is not cured by drinking more alcohol! A spendoholic is NOT cured by spending more money! STOP the SPENDING!!!
Tucked away in the 2010, 1040 Tax Booklet on page 97 are two pie graphs showing the revenue collected and borrowed by the federal government and the expenditures of the federal government for fiscal year 2009 which began in October of 2008 and ended in September of 2009. Of course, we are currently in the fiscal year 2011 budget. President Obama has sent to Congress the proposed fiscal year 2012 budget and the House of Representatives has already passed its own proposed budget for 2012.
From: 2010, 1040 Tax Booklet, page 97
“Major Categories of Federal Income and Outlays for Fiscal Year 2009”
In fiscal year 2009 (which began on October 1, 2008, and ended on September 30, 2009), federal income was $2.105 trillion and outlays were $3.518 trillion, leaving a deficit of $1.413 trillion.
Income Outlays
1) Borrowing to cover deficit 40%
Amount borrowed: $1,413,000,000,000 = one trillion, four hundred thirteen billion dollars
2) Personal income taxes 26%
Amount from personal income tax: $914,680,000,000 = nine hundred fourteen billion, six hundred eighty million dollars
3) Social security, Medicare, and unemployment and other retirement taxes 25%
Social security, etc. taxes: $879,500,000,000 = eight hundred seventy nine billion, five hundred million dollars
4) Excise, customs, estate, gift, and miscellaneous taxes 5%
Excise, etc. taxes: $175,900,000,000 = one hundred seventy five billion, nine hundred million dollars
5) Corporate income taxes 4%
Corporate income taxes: $140,720,000,000 = one hundred forty billion, seven hundred twenty million dollars
Total taxes collected: $2,110,800,000,000 = two trillion, one hundred ten billion, eight hundred million dollars (Difference due to rounding.)
NOTE:
$2,110,800,000,000 = amount collected in taxes
$1,413,000,000,000 = amount borrowed (increase in national debt!)
$3,518,000,000,000 = total spending
(The amount of taxes collected and amount borrowed do not equal total spending due to rounding.)
Outlays
(The percentages for outlays do not total 100% due to rounding.)
1) Social security, Medicare, and other retirement 34%
Social security, Medicare, and other retirement: These programs provide income support for the retired and disabled and medical care for the elderly.
$3,518,000,000,000 = total spending
$1,196,120,000,000 = amount for social security etc
That is, one trillion, one hundred ninety six billon, one hundred twenty million dollars (NOTE: the amount taken in in taxes for this same specific category is “Social security, etc. taxes: $879,500,000,000 = eight hundred seventy nine billion, five hundred million dollars” leading to a deficit in this category of -$316, 620,000,000. That is, the deficit in this category is over three hundred sixteen billion dollars!
2) National defense, veterans, and foreign affairs 22%
National defense, veterans, and foreign affairs: About 18% of outlays were to equip, modernize, and pay our armed forces and to fund national defense activities; about 3% were for veterans benefits and services; and about 1% were for international activities, including military and economic assistance to foreign countries and the maintenance of U.S. embassies abroad.
$3,518,000,000,000 = total spending
$0,773,960,000,000 = amount for national defense etc
That is, seven hundred seventy three billion, nine hundred sixty million dollars
3) Social programs 21%
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.
$3,518,000,000,000 = total spending
$0,738,780,000,000 = amount for social programs
That is, seven hundred thirty eight billion, seven hundred eighty million dollars
4) Physical, human, and community development 15%
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.
$3,518,000,000,000 = total spending
$0,527,700,000,000 = amount for Physical, human, and community development
That is, five hundred twenty seven billion, seven hundred million dollars
5) Net interest on the debt 5%
$3,518,000,000,000 = total spending
$0,175,900,000,000 = amount for interest on the debt
That is, one hundred seventy five billion, nine hundred million dollars just in interest payments!!!
This amount would be even higher if interest rates weren’t at historically low rates. The problem is, extremely low interest rates help the federal government in keeping its cost lower but the same low interest rates is a form of stealing from we, the people who are savers. Since savings income is at such a low rate, it discourages traditional savings [encourages hoarding in such forms as gold and art collections] and decreases the amount of taxes collected on savings income.
6) Law enforcement and general government 2%
$3,518,000,000,000 = total spending
$0,070,360,000,000 = amount for law enforcement etc
That is, seventy billion, three hundred sixty million dollars
NOTE that the federal government borrowed 40% of ALL the money spent. Let’s simplify the spending problem involved in this budget. If a household had an annual income of $60,000 (sixty thousand dollars) and spent $100,000, that household would have to borrow $40,000 to spend that much money. That household has then borrowed 40% of the money it spent. If that household continued to do that year, after year, after year; what would be the result?
The House of Representatives recently cut the fiscal 2011 budget by 61 billion dollars. [This cut, of course, did not pass the Senate. The compromise was $38 billion dollars in vastly different areas than originally intended.] Using the figures for total expenditures for 2009 which is lower than the total expenditures that will occur for the 2011 budget, what kind of cut would this had been?
It would look like this: $61,000,000,000 divided by $3,518,000,000,000 = .0173. That’s right! A 61 billion dollar cut in the fiscal year 2011 budget is a cut of LESS than 2%. A cut of less than two percent of a budget that will borrow over 40% of the money spent. That’s not even a drop in the bucket in comparison to what NEEDS to be cut from the budget.
And yet, all you heard from the Democrats were complaints about the extreme and excessive cuts! Are they serious! WE need to CUT much more of the 2011-2012 proposed budget. NO ONE, not even nations, can continually spend more than earned, collected without major, detrimental consequences.
Spending above income may have TEMPORARY, SHORT TERM benefits for economic growth. However, the long term harm IS devastating. If a person or a nation could borrow itself out of debt, we should finance all of government by borrowing. That, of course, is NONSENSE!!! There is an old saying, pay me now or pay me later. To wait, to procrastinate, to borrow even more is to multiple the ultimate PAIN!!!
WE MUST stop borrowing! WE MUST stop spending more than we have! It will only stop if demanded by we, the people!! An alcoholic is not cured by drinking more alcohol! A spendoholic is NOT cured by spending more money! STOP the SPENDING!!!
posted by Christian Gunslinger at 6:20 AM
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