The magic money wand

Does the fact the Untied States is in debt to the tune of $86,019 per citizen or a total debt of $28.6 trillion and an annual deficit of $3.1 trillion matter? Should we be concerned that we spend $403 billion each year on interest payments? SOURCE: US Debt Clock 8-22-21

Total US annual spending is about $7 trillion per year, but we only pay for little more than 50% of that spending.

At that rate of spending if we confiscate the entire net worth of the top 1% of US citizens, it would run the government for less than five years.

I’m thinking we have a problem with spending and telling Americans the truth about the taxes needed to keep the current programs such as Social Security and Medicare running as promised.

Have you heard about the additional taxes needed to forgive student loans, provide day care, lower eligibility age for Medicare, add additional benefits for Medicare, increase Social Security benefits and the COLA, all of which are being called for by Americas progressive politicians?

If you have, it was likely in the context of simply higher taxes on the millionaires and billionaires.

Don’t bet on it!

Don’t believe me? Look at the tax structures in the European Union and especially Scandinavia.

So if you are in the camp of Bernie, Elizabeth and the rest of Americas extreme progressive politicians and you support all the “more” they promise, get real.

Of course we can just ignore the spending and not pay for it all.

5 comments

  1. In 2006 the national debt was just 5 Trillion dollars, today it is over 28 Trillion dollars, 23 Trillion dollars added in just 15 years, CRAZY!!! The interest paid on the debt each year is 403 Billion dollars, not the 403 Million dollars (I wish) listed above. The CBO estimates at current spending, we will be spending more on interest payments than national defense in 10 short years. Maybe sooner if the bankers and politicians get their way. Unfortunately the only fix may be a total collapse of the world economy. Time to start over, go back to 75 cent minimum wage and gasoline at 18 cents. It worked well in 1950 and there where no Billionaires.

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  2. I believe the national debt will bring down our nation just like massive debt has destroyed other civilizations and empires unless the socialist do it first.

    However, people saw the banks and car companies get bailed out but failed to see that they paid the money back. During the pandemic people got free money and believed that they didn’t have to pay their rent. With all this “free” money I can understand why the young and uninformed believe that everything can be free.

    When the day comes that they are eating at soup kitchens, then maybe they will realize that nothing is free. When these same people give up there freedom so that the government will take came of them, maybe then they will realize what they have lost. I hope that I am dead before this happens.

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  3. I agree that everything can’t be a gift to the left but let’s face it the right has done nothing to keep the debt in check in fact they contributed mightily to the deficit during Trumps term. The tax changes he made were particularly devastating and so hearing the left clamor for all the freebies ,while a bit upsetting, has a ring of fairness given what transpired during his term. However be sure two wrongs don’t make a right so what to do. let’s start by taxing all income up to 300k with Social security and then move the retirement age to 68 and at least get the SS house in order. Then go back and make a minimum threshold for corporate taxes so that all companies pay taxes, no accounting tricks to cause avoidance. After that we can see where we are and then talk about any additional giveaways but debt forgiveness should not be in the equation you want to go to college pay for it up front or afterward but don’t forgive the debt unless some form of public service is performed be it military service or peace corp or some other similar offset. Finally like with corporations I would suggest the idea of the rich being taxed while true in theory is often undone by the way the rules are written which I suspect is why Trump doesn’t want his taxes divulged since he has manipulated the rules to avoid being taxed on the great majority of his income. The truth is that aspect of the tax code needs to be re-vamped so again there is some minimum tax regardless of any tax haven type investments. Some minimum regardless of what a person does should be subject to a 10% tax at the minimum regardless of what other manipulations the accounts magic performs. As you often state the politicians don’t have the guts to enact this type of fairness because they are always pandering for the vote so again let’s enact term limits and get them out after or six or years and then perhaps they will actually work for the good of the country as opposed to their continued employment.

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    1. While I agree with much of what you said, but consider the ramifications of term limits. The new folks will recycle many of the old staffers and these non-elected staffers will have more power than today to push political agendas behind the scenes.
      Regarding SS, why limit it to the first $300k? Add a fixed 3rd break point in the SS PIA calculation that adds 0% above the new break point and then totally eliminate the exemption any earned income for SS tax, just like Medicare taxes. Continue adjusting the 1st & 2nd breakpoints as normal, but leave new 3rd break point. Eliminate the 3rd break point once 2nd break point reaches the 3rd break point in the future. Also, raise FRA to 68 for those born in 1980-1999, to 69 for those born in 2000-2019, to 70 for those born in 2020 and thereafter.

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