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Fasten your Seat Belts! An Even Tougher Deficit Plan
By ANDREW L. YARROW, The Fiscal Times on Nov 17, 2010
Former Congressional Budget Director Alice Rivlin and former Senate Budget Committee Chairman Pete V. Domenici, R-N.M., have been combating public debt for decades, and have few peers as federal budget mavens. Today, the Bipartisan Policy Center (BPC) Debt Reduction Task Force they co-chair is releasing some of the most far-reaching proposals yet for sharply reducing the federal debt, beginning in 2020.
The task force report outlines measures to blow up the income tax and start over, slash projected Medicare and Medicaid costs by $756 billion over the coming decade, impose a medium-term freeze on defense and domestic discretionary spending, introduce a host of solvency-creating Social Security reforms, and impose a national debt reduction sales tax, Rivlin told The Fiscal Times during a recent interview in her Brookings Institution office.
The proposed national sales tax known as a Value Added Tax (VAT) will be highly controversial because it would be imposed on top of existing state sales taxes potentially a blow to the economic recovery. And the proposal for Medicare would dramatically alter the way the national health insurance program for the elderly is financed and operated.
Debt is a big problem, which is why ours is a bold plan, said Rivlin, who also serves on President Obamas bipartisan deficit commission, which is due to issue its own report in two weeks. Rivlin and Domenici believe the country is facing a serious fiscal crisis with the annual budget deficit well in excess of $1 trillion and the national debt threatening to bump up against a $14.3 trillion debt ceiling by early next year.
This crisis is an opportunity to do some significant reforms, Rivlin said. And its important to demonstrate that a bunch of Republicans and Democrats can come together on something the group believes is viable, even if not everyone agrees with all the pieces.
Last week, the chairmen of the Presidents commission, Erskine Bowles, former chief of staff to President Clinton, and former Republican Sen. Alan Simpson, R-Wyoming, publicly floated recommendations to reduce deficits by $3.8 trillion over the next decade and spark discussion among commission members. These ideas, which overlap with some being presented today by the BPC group, have won some kudos for the boldness but already sparked fierce criticism across the political spectrum.
If anything, the Rivlin-Domenici task force recommendations are even bolder. Overall, the plan would cut the deficit by $5.8 trillion by 2020. The plan includes nine components that address virtually all aspects of federal spending and taxes in ways intended to establish long-term fiscal responsibility, spread cuts among entitlement and discretionary spending, radically revamp Americas tax system, and help stimulate economic growth. The pieces of this plan, like any budget plan, are ones that would not have much chance if voted on by themselves, but Im very excited about the broader package, Rivlin said. (The task force is partly funded by the Peter G. Peterson Foundation. Peter Peterson also finances The Fiscal Times.)...
Through March, the federal government collected approximately $695,391,000,000 in individual income taxes. That is about $7,387,280,000 more than the $688,003,720,000 in individual income taxes (in constant 2017 dollars) that the federal government collected in the first six months of fiscal 2016. The federal government also collected $547,491,000,000 in Social Security and other payroll taxes during the first six months of fiscal 2017. That is about $2,731,820,000 more than the $544,491,000,000 in Social Security and other payroll taxes (in constant 2017 dollars) that the government collected in the first six months of fiscal 2016.
Despite collecting record amounts of individual income taxes and payroll taxes, the Treasury still ran a deficit of $526,855,000,000 in the first six months of fiscal 2017. Also, even with record revenues f2rom individual income taxes and payroll taxes in the first six months of fiscal 2017, overall federal tax collections were slightly down. In the first six months of fiscal 2016, the federal government collected $1,513,124,070,000 (in constant 2017 dollars) in total taxes. In the first six months of this fiscal year, total federal tax collections have dropped to $1,473,137,000,000—a decline of about $39,987,070,000 from total tax collections in the first six months of fiscal 2016.
The largest part of that decline can be attributed to a drop in corporate income tax collections. In the first six months of fiscal 2016, the federal government brought in $124,954,730,000 (in constant 2017 dollars) in corporate income taxes. In the first six months of this fiscal year, it has brought in only $100,234,000,000—a decline of about $24,720,730,000. Receipts from customs duties and excise taxes are also down from last year. In the first six months of fiscal 2016, the federal government collected $18,115,860,000 (in constant 2017 dollars) in customs duties. In the first six months of fiscal 2017, it has collected only $16,936,000,000—a decline of about $1,179,869,000.
In the first six months of fiscal 2016, the federal government collected $40,233,320,000 (in constant 2017 dollars) in excise taxes. In the first six months of this fiscal year, it has collected only $37,488,000,000—a decline of $2,745,320,000. The federal government ran its $526,855,000,000 deficit through the first six months of this fiscal year because while the Treasury was collecting $1,473,137,000,000 in total taxes, it was spending $1,999,991,000,000. Because there were 153,000,000 people employed in the United States in March, according to the Bureau of Labor Statistics, the $1,473,137,000,000 in taxes the federal government has collected so far this fiscal year equals about $9,628 for every person with a job. The $526,855,000,000 deficit equals about $3,443 for every person with job.
Feds Collect Record Income and Payroll Taxes Through March--Still Run $526,855,000,000 Deficit
Despite taking in record individual-income-tax revenues, the federal government ran a deficit of approximately $225 billion during the quarter. The Treasury collected a record $390,847,000,000 in individual income taxes in October through December, according to the Treasury statement. That was $30,568,380,000 more than the $360,278,620,000 that the Treasury collected (in constant December 2017 dollars) in individual income taxes in the first quarter of fiscal 2017 (which ran from October through December of 2016).
Fiscal 2016, when the Treasury collected $366,424,140,000 in individual income taxes in the first quarter (in constant December 2017 dollars), now ranks as the No. 2 all-time year for first-quarter individual-income-tax collections. Total tax collections in the first quarter of fiscal 2018 equaled $769,512,000,000. But because the government spent $994,467,000,000 during the quarter, the Treasury ran a deficit of $224,955,000,000.
The $769,512,000,000 in total tax revenues during the quarter did not set a record for first-quarter total tax collections. It was more than the $756,394,470,000 in total taxes (in constant December 2017 dollars) that the Treasury collected in the first quarter of fiscal 2017, but less than $798,012,340,000 in total taxes (in constant December 2017 dollars) that the Treasury collected in the first quarter of fiscal 2016.
The $769,512,000,000 in total tax revenues collected in the first quarter of this year included not only the record $390,847,000,000 in individual income taxes, but also $62,052,000,000 in corporate income taxes; $259,165,000,000 in Social Security and other payroll taxes; $19,458,000,000 in excise taxes; $5,258,000,000 in estate and gift taxes; $9,446,000,000 in customs duties; and $23,588,000,000 in miscellaneous government receipts.
According to the Census Bureau, there were 126,224,000 households in the United States in 2017. The $769,512,000,000 in total taxes collected by the federal government in the first quarter of fiscal 2018 equaled approximately $6,096 per household.
Feds Collect Record Income Taxes Through December; Still Run $225 Billion Deficit
First handlers and importers of 500,000 pounds of fresh mangos each year pay a fee to fund the Board, a cost that is collected by the U.S. Department of Homeland Security's Customs and Border Protection. The Board has 18 members, which includes 8 importers, 2 domestic producers, 1 first handler, and 7 foreign producers, according to its website. The National Mango Board is based in Orlando, Fla.
In December, Agriculture Secretary Sonny Perdue announced the appointment of six members to serve three-year terms on the National Mango Board. Three were from U.S. states and two were from Mexico and Peru. “I truly appreciate the time and expertise that these individuals have agreed to give guiding the National Mango Board in its mission to find ways to provide fresh mangos to U.S. consumers and help their industry thrive,” said Secretary Perdue.
Commenting on the Board, Judicial Watch said, "Here’s why this obscure government entity exists; to increase the consumption of fresh mangos in the United States, unlikely to be a pressing issue for most Americans. The board accomplishes this with promotion and market development activities that naturally also support a thriving industry. “'The board’s vision is to bring the world’s love of mangos to the U.S.,' according to the National Mango Board website, which describes itself as a 'promotion and research organization,'" reported Judicial Watch. "The site includes all sorts of interesting information about mangos, including the unique texture and flavors of different varieties, how to ripen, cut and store the fruit and tips on choosing the perfect mango—don’t focus on color because it’s not the best indicator of ripeness," reported Judicial Watch. "There are also recipes for just about any dish with mango, including tropical mango guacamole, shrimp and mango curry, mango Manchego stuffed with jalapeños and crusted pork with mango relish, among others. Six varieties of mangos are sold in the U.S.; Tommy Atkins, Haden, Kent, Keitt, Honey and Francis."
Judicial Watch continued, "One of the more recent studies sponsored by the board includes an in-depth analysis on the ideal temperature to deliver the highest quality mangos. The findings are delivered in an exhaustive 38-page report, but the nutshell is that the optimal transit temperature for mangos is around 55 degrees Fahrenheit. "The problem however, is that mangos are often transported in refrigerated trailers with other food items that require colder temperatures and the mangos get compromised. The experts in 'perishable food cold chain' hired to research the matter were left with the objective of finding commercially available pallet covers for the thermal protection of mango pallets transported in a mixed load refrigerated trailer. "It’s not clear how much this important research cost the Mango Board. For those wondering, Kent mangos were used in the study and pallet covers were tested with and without a base."
U.S. National Mango Board Runs on $6.7 Million a Year
