U.S. Deficit Explodes Even As Economy Grows

[berg80]

The need to increase the debt limit1 has focused attention on the size and trajectory of the federal debt. Long-term projections show2 that federal debt as a percentage of the U.S. economy is on a path to grow indefinitely, with increased noninterest spending due to demographic changes such as increasing life expectancy, declining fertility, and decreased immigration and rising health care costs permanently outstripping revenues under projections based on current law. House Republican leaders have used this fact to call for spending cuts,3 but it does not address the true cause of rising debt: Tax cuts initially enacted during Republican trifectas in the past 25 years slashed taxes disproportionately for the wealthy and profitable corporations, severely reducing federal revenues. In fact, relative to earlier projections, spending is down, not up. But revenues are down significantly more. If not for the Bush tax cuts4 and their extensions5—as well as the Trump tax cuts6—revenues would be on track to keep pace with spending indefinitely, and the debt ratio (debt as a percentage of the economy) would be declining. Instead, these tax cuts have added $10 trillion to the debt since their enactment and are responsible for 57 percent of the increase in the debt ratio since 2001, and more than 90 percent of the increase in the debt ratio if the one-time costs of bills responding to COVID-19 and the Great Recession are excluded. Eventually, the tax cuts are projected to grow to more than 100 percent of the increase.
https://www.americanprogress.org/ar....-,The Trump tax cuts,end of fiscal year 2023

 

[francoHFW]

People generally choose the life they have. They could make better choices.

So there is no connection between ridiculously expensive college and training and crappy infrastructure and no benefits of citizenship like day care help paid parental leave like every other modern country..... And you blame it on the victims because you are a brainwashed functional GOP base drone. Change the damn channel we are all going to hell so the rich can have 500 foot yachts for the first time since the Gilded Age which was the last time inequality was this bad, ALMOST!!!!!!!!!! WAKE UP, SLEEPY....

 

[francoHFW]

The need to increase the debt limit1 has focused attention on the size and trajectory of the federal debt. Long-term projections show2 that federal debt as a percentage of the U.S. economy is on a path to grow indefinitely, with increased noninterest spending due to demographic changes such as increasing life expectancy, declining fertility, and decreased immigration and rising health care costs permanently outstripping revenues under projections based on current law. House Republican leaders have used this fact to call for spending cuts,3 but it does not address the true cause of rising debt: Tax cuts initially enacted during Republican trifectas in the past 25 years slashed taxes disproportionately for the wealthy and profitable corporations, severely reducing federal revenues. In fact, relative to earlier projections, spending is down, not up. But revenues are down significantly more. If not for the Bush tax cuts4 and their extensions5—as well as the Trump tax cuts6—revenues would be on track to keep pace with spending indefinitely, and the debt ratio (debt as a percentage of the economy) would be declining. Instead, these tax cuts have added $10 trillion to the debt since their enactment and are responsible for 57 percent of the increase in the debt ratio since 2001, and more than 90 percent of the increase in the debt ratio if the one-time costs of bills responding to COVID-19 and the Great Recession are excluded. Eventually, the tax cuts are projected to grow to more than 100 percent of the increase.
https://www.americanprogress.org/article/tax-cuts-are-primarily-responsible-for-the-increasing-debt-ratio/#:~:text=vastly less revenue.-,The Trump tax cuts,end of fiscal year 2023

Tax the rich again and invest in America again so we don't have the worst inequality upward mobility and poverty and homelessness anywhere in the modern world ever by far for crying out loud... Trickle down is a disaster OMG change the damn channel read something not published by scumbags.....

 

[g5000]

G500(MAC) suggests there is $1.5T laying around to confiscate without killing the already fragile economy.

Where is it? Our savings? Corporate? The “Rich”?

No, it is in tax expenditures.

We have an insane tax system in which entities earning identical incomes pay radically different taxes. And that is because of tax expenditures.

Tax expenditures cause tax rates to rise and borrowing to rise.

Eliminate them, and everyone earning identical incomes would pay identical taxes at lower rates.

if it’s so easy, we are in year 11 of Obiden. Yet they do nothing? Trump policy increased revenue legitimately not only thru inflation.

Revenues have increased every year for decades, except during recessions like 2001, 2008, and 2020.

You are being hoaxed. So long as tax rates stay within certain margins, revenues consistently go up.

When Clinton and Obama increased taxes, revenues went up. This is something the MAGA media won't tell you.

I did not say it would be EASY to solve our debt problem. I said it would be SIMPLE.

Big difference.

It is DIFFICULT because our politicians depend on the massive feed bag put on their muzzles by special interests to keep things fucked up in their favor.

 

[g5000]

"Don't be distracted by shiny objects"

Proceeds to post WAPO article

Oh the sweet, sweet irony.

What a dumbass moron you are.

What news source would you prefer to see that our deficit has exploded, dipshit?

This is how you morons are kept ignorant. You are trained to ignore any message that doesn't come from your propagandists. They have you distracted by trannies and Negroes Behaving Badly.

Sad.

 

[RhodyPatriot]

You are trained to ignore any message that doesn't come from your propagandists.

Au contraire.

I finally got some sense and stopped listening to the propagandists in May of 2020.

I see you're still as brainwashed as ever.

You have a good night now.

 

[g5000]

Revenue increased because of the billions and billions and billions the Fed was pumping and the billions in debt.

Um...no. The billions in debt are caused by OUTLAYS. Revenues are INLAYS.

The debt is because outlays are greater than inlays.

That can't last forever.

Truh. That's why I started this topic. We are being driven full speed ahead toward the destruction of our republic while the rube herd is kept distracted by trannies and Mexicans.

 

[g5000]

LFPR rate was up compared to now. That helps grow revenue, SS and Medicare funds too. Before they launched Fauchi flu to create another crisis.

LFPR is recovered. As for the rest, I don't feed into stupid conspiracies. Sorry.

 

[g5000]

Note: it seems increasing GOVT revenue thru inflation does no good for GOVT operating expenses as the costs rise with inflation….duh. Eat that up, anthony.

Cut Spending, the 25 year old battle cry going unanswered.

We can balance the budget simply by eliminating tax expenditures and raising the retirement age to 70 and indexing it to 9 percent of the population going forward.

This would not only balance the budget, it would provide a surplus we could use to pay down the debt and lower tax rates for everyone.

Simple. But impossible so long as we tolerate the corruption of ALL our politicians.

 

[g5000]

Except it’s very likely Putin and Russia are being strengthened.

ps. Why do you think harming Russia is in the interests of the American people? Did corporate tv tell you that?

Ukraine is the world's bread basket. Do you seriously want a mass murdering war criminal KGB thug controlling our food supply?

 

[g5000]

And how do we hold them accountable? If you think that just voting for "other" will work, you are delusional.

We hold them accountable by refusing to be distracted by shiny objects. We start making the debt our number one issue.

When some dipshit promises to pay off the debt and then proceeds to double the deficit and add $8 trillion to the debt, we stop praising him as an Orange Jesus and fire his lying ass.

When some other fucktard starts going off about Jewish Space Lasers, we ask what they are doing about the debt.

We make every question about the debt and stop these stupid fauxrages about trannies and other small shit.

 

[leftwinger]

We can balance the budget simply by eliminating tax expenditures and raising the retirement age to 70 and indexing it to 9 percent of the population going forward.

This would not only balance the budget, it would provide a surplus we could use to pay down the debt and lower tax rates for everyone.

Please show what $1.5T in "tax expenditures" looks like. Thanks. I am working here no time to dig into it.
Again, if it is so easy. You have had 11 years of Obiden now in the books. No changes to date?

 

[g5000]

Exactly the kind of people who will never be elected.

Yeahhh...sad but true.

The American people don't want quality people running things. They never have.

We get the politicians we deserve.

From 1832:

On my arrival in the United States I was surprised to find so much distinguished talent among the subjects, and so little among the heads of the Government. It is a well-authenticated fact, that at the present day the most able men in the United States are very rarely placed at the head of affairs; and it must be acknowledged that such has been the result in proportion as democracy has outstepped all its former limits. The race of American statesmen has evidently dwindled most remarkably in the course of the last fifty years.

Several causes may be assigned to this phenomenon. It is impossible, notwithstanding the most strenuous exertions, to raise the intelligence of the people above a certain level. Whatever may be the facilities of acquiring information, whatever may be the profusion of easy methods and of cheap science, the human mind can never be instructed and educated without devoting a considerable space of time to those objects.

<snip>

Long and patient observation, joined to a multitude of different notions, is required to form a just estimate of the character of a single individual; and can it be supposed that the vulgar have the power of succeeding in an inquiry which misleads the penetration of genius itself? The people has neither the time nor the means which are essential to the prosecution of an investigation of this kind: its conclusions are hastily formed from a superficial inspection of the more prominent features of a question. Hence it often assents to the clamor of a mountebank who knows the secret of stimulating its tastes, while its truest friends frequently fail in their exertions.

<snip>

In the United States the people is not disposed to hate the superior classes of society; but it is not very favorably inclined towards them, and it carefully excludes them from the exercise of authority. It does not entertain any dread of distinguished talents, but it is rarely captivated by them; and it awards its approbation very sparingly to such as have risen without the popular support.

Whilst the natural propensities of democracy induce the people to reject the most distinguished citizens as its rulers, these individuals are no less apt to retire from a political career in which it is almost impossible to retain their independence, or to advance without degrading themselves.

Democracy in America, Part I. by Alexis de Tocqueville

 

[g5000]

Public won't give a hoot until the dollar losses much of its value and 20% inflation hits us like it did Italy back in 1980.

I predicted years ago the government would inflate us out of our debt bubble.

The Fed's Bond Bubble Doomsday Machine

When you buy a bond, you are making a loan to the issuer. That bond is money owed to the buyer, making it an asset. When the Federal Reserve buys a US Treasury bill, note, or bond, it is making a loan to the federal government because the federal government has appropriated more spending than...

www.usmessageboard.com

Of the six ways to reduce debt, inflation is the least unpalatable to the public.

 

[g5000]

Another Republican who can't see past the end of his nose and is OK with the country going to hell as long as he's alright What the heck is wrong with you people, I mean beside the election fraud vaccine global warming Biden Etcetera Etcetera fraud without evidence total BS?

I'm pretty sure he was joking.

 

[g5000]

The Democrats have plenty of people with honor who want to improve things for the people

Not really.

Democrats: Tax and spend

Republicans: Borrow and spend

Neither party is really interested in balancing the budget.

 

[g5000]

Biden is trying to reign in the Trump spending increase/tax cut actions...

Biden has reduced spending considerably but the problem is some spending had to increase because the economy would suffer more if you cut everything.

Infrastructure spending provides a return on investment.

A great deal of government spending does not.

 

[Woodznutz]

So there is no connection between ridiculously expensive college and training and crappy infrastructure and no benefits of citizenship like day care help paid parental leave like every other modern country..... And you blame it on the victims because you are a brainwashed functional GOP base drone. Change the damn channel we are all going to hell so the rich can have 500 foot yachts for the first time since the Gilded Age which was the last time inequality was this bad, ALMOST!!!!!!!!!! WAKE UP, SLEEPY....

Buying or building a large yacht returns millions of dollars to designers, laborers, engineers, artisan's, craftsmen, suppliers, and others. These yachts are rented out for cruises and dockside parties and other events. They are crewed by dozens of people who have the opportunity to see the world while earning good pay. They also must be maintained which also provides employment for skilled workers. You could pay for your college by working on a yacht. All in all yachts are a good thing. The bigger they are the more money flows back into the economy. It's the real trickle down that is the basis of all modern economies.

 

[g5000]

Please show what $1.5T in "tax expenditures" looks like. Thanks. I am working here no time to dig into it.
Again, if it is so easy. You have had 11 years of Obiden now in the books. No changes to date?

https://home.treasury.gov/system/files/131/Tax-Expenditures-FY2023.pdf

 

[Woodznutz]

Tax the rich again and invest in America again so we don't have the worst inequality upward mobility and poverty and homelessness anywhere in the modern world ever by far for crying out loud... Trickle down is a disaster OMG change the damn channel read something not published by scumbags.....

More opportunities for upward mobility today than ever. Especially with so many taking themselves out of the job market via crime, drugs, mental illness, laziness, and of course unrealistic expectations.