Your paycheck is about to shrink [Decreased Witholdding about to go away]

Here is a deal I'm willing to make...

Bring Federal expenditures down to FY2007 levels (inflation adjusted): $2,800 Billion
The FY2010 expenditures were: $3,456 Billion.
Current FY2011 estimate: $3,841 Billion

Kinda going in the wrong direction, eh. And, the fiscal emergency is over. In fact, much of the deficit spending should automatically drop off the balance sheet this year - unless the Libs made the spending structural. Thus, the reduction should be easy. Just kinda fall off, eh...

Once the Federal government shows this good faith effort I will accept tax increases to make up the difference between revenue and expenditures.

I might even be magnanimous enough to allow a $70 - $100 Billion increase in expenditures over inflation to allow for increased recession spending. Thus, show me good faith and drop expenditures to $2,900 Billion.

Here is my SWAG. Once the Feds do this and make the Bush tax code permanent, the deficit will go away as the velocity of money improves tax revenue. If not, I will pay the piper till deficits zero out or even turn to workable surpluses - gracefully and without complaint. I won't be like Warren Buffet and complain about low taxes on one hand and pay a legion of tax lawyers to grind the tax code on the other.
 
Well, from what I've seen of the future projections of the cost of continuing the tax cut saddled with the increases in Medicare and Social Security, we are going to need to fashion a really good paddle because we will be out in a creek.
 
Silverbird,

The entire 'Bush Tax Cut' costs $320 Billion per year. Of that, 'The Corpulant 5%' consume $70 Billion a year.

Our single year deficit this year was $1,294 Billion.
Last year's single year deficit this year was $1,417 Billion.

If we keep that $320 Billion in the private sector (and do not make a grab for it) that money will move around. Money movement will create tax revenue for all government entities. Pulling it back will result in folks hiding income, holding non-performing assets, and playing tax games.

And, what is government doing with it? Bloating the Agriculture Department by 46%? Bloating the Energy Department by 46%?

And, what happens after we bloat spending by another 21% over the next two years? Especially when folks start demanding more interest on Treasuries.

As soon as the Feds and State gubmint cut spending to 2007 levels (inflation adjusted) I will yell from the top of a mountain for temporary tax increases to make up the difference. My guess, however, would be that making the 'Corpulent Bush Tax Cuts' permanent while triming gubmint bloat will result in a balanced budget before a demand for tax increased becomes necessary!!!
 
Bush gave one to everybody. But it was scheduled to end this year, that's how is was written. Every budget up to this one assumed (and we know what three words you can get out of assumed) everyone gets punked next year so the future budget calculations looked really rosy.

Now comes the punk.
 
Silverbird,

This is too funny.

We can't afford the 'Making Work Pay' giveaway! That $30 a pay period (family of four) is debt financed! We will just have to suck it up and add that to the $200 a pay period tax cut Bush gave us (but, of course, he only gave it to the corpulent fat cat bankers).

Time to give it back.
Get ready for some austerity.
That will get the economy running again.
 
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