Cold hard numbers about US budget, personal income, and flat tax

Discussion in 'Politics' started by gekaap, Mar 9, 2011.

  1. gekaap
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    gekaap BANNED

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    Source for income figures (2008)

    Source for budget figures (2010)

    I've used the most recent information I could find. If anyone can find more recent data I'm happy to plug away new calculations. If anyone feels the calculations are in error, I'm happy to hear what calculations you come up with.

    Total income earned by Americans in 2008 was about $8.4 trillion. Considering the economic hard times that we've hit since I'm willing to wager that figure is still pretty close to where we'd be for the most recent year.

    The budget for FY 2010 showed about $3.4 trillion in expenditures. How, then, would a flat tax fit into the scenario? Assuming we are aiming for a balanced budget, a flat tax (assuming no kinds of tax breaks whatsoever are made available) would demand a 40.48% tax rate, just to cover budgetary expenses. Again, that only covers expenses, it does nothing to address the national debt. So, is that what anyone wants?

    Of course, it could be suggested that the government is spending too much and the budget needs to be reduced. Okay then, what specific cuts would you make? Exactly where and exactly how much? If you could, please do the math to show what the total budget would be after your cuts, and what the flat tax rate would be to cover the expenses of your reduced budget.

    But don't stop there. No doubt one thing that is going to be mentioned is entitlement spending. If that's where you think things need to be trimmed, please consider and explain the effects that reducing entitlements will have on the economy, specifically how a the new flat tax would better enable the poor to be better off financially, and how the poor's ability to pay for goods and services will affect the greater economy. And if you'd be so kind, let us know how the mathematics work out.
     
  2. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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    That's the thing about "Flat -Taxes" and "Entitlement" cuts. They seldom address what is going on in the real world. Even people, like myself, who would like to see military expenditures cut must realize these cuts have to be phased in gradually. There are real people depending on that spending...and real jobs will get cut. If there are massive cuts there will be massive unemployment.
     

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