It’s Not A Spending Problem. It’s A Revenue Problem

[Dadoalex]

A long time Republican talking point on the budget is that we allegedly have a spending problem and don’t have a revenue problem. They have it exactly backwards. It’s time to fact check Republican gaslighting on spending and taxes.
The GOP is gaslighting us on spending when they claim that spending is allegedly out of control. Let’s look at the facts. Federal spending was 31.2 percent of GDP in 2020. Federal spending was 25.6 percent of GDP in 2022. Federal spending will be 24 percent of GDP under Biden’s budget. Spending is down significantly since Biden took office.

Bush was the only two term president in American history to preside over a decline in middle class incomes during his two terms as president. Moreover, at the time, Bush had the worst job creation record since Herbert Hoover.

The Trump jobs record was worse. In 2020, the U.S. economy lost a net 10 million jobs. Weekly unemployment claims between March and December 2020 exceeded the worst week of the 2008–09 recession. Trump left office after nearly 50 straight weeks of the worst job losses in American history. Trump was the first president since the Great Depression to leave office with fewer jobs in the country than when he was inaugurated.

Trump promised that the 2017 tax cuts would: 1. Deliver a $4,000 pay raise to the middle class; 2. Pay for themselves; 3. Kick off an investment boom; 4. Generate 6% GDP growth. 5. Generate more job growth.

None of this happened. Even before the pandemic, middle class incomes rose a paltry 1% adjusted for inflation; the deficit increased from $585 billion to $1 trillion; 85% of the tax cuts were spent on dividends and stock buybacks; there was no investment boom; GDP growth was no different than it was under Obama; and job growth declined by 20%. By Trump’s own criteria, the 2017 tax cuts were a failure.

Daily Kos

Daily Kos is a progressive news site that fights for democracy by giving our audience information and resources to win elections and impact government. Our coverage is assiduously factual, ethical, and unapologetically liberal. We amplify what we think is important, with the proper context—not...

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You Magats do know we keep records of these things right?

Actually, it's both.

GOP tax cuts increased the deficit and debt but also increased spending because the increased debt also increased interest payments on the debt adding some $300B to the deficit and $9 trillion in debt in the process.

Plus the GOP instituted many programs that have cost trillions sine their start without collecting a single extra dollar in taxes to pay for them. (Iraq, Afghanistan, and medicare part d)

Unless we are willing to raise taxes and restrict spending growth the problem will only get worse.

 

[multivita-man]

Federal revenue increased every year after the tax cuts, with the obvious exception of 2020, and even that was only a minor dip.

U.S. Federal Government Tax Revenue

The federal government generates tax revenue through sources like income and corporate taxes. Learn how much tax revenue the U.S. generates each year.

www.thebalancemoney.com

Not enough to keep up with spending; debt/GDP ratio increased every year after 2017. Not substantially until 2020, but still, it was irresponsible to introduce those tax cuts.

Neither party is having a serious discussion about the sacrifices that will need to be made to return to fiscal sanity.

 

[Ordinary Guy]

Another big spend democrat, it is always the burdens to society that favor this shit

 

[Mac-7]

Not enough to keep up with spending; debt/GDP ratio increased every year after 2017. Not substantially until 2020, but still, it was irresponsible to introduce those tax cuts.

Neither party is having a serious discussion about the sacrifices that will need to be made to return to fiscal sanity.

Solving the problem is simple

Freeze the current budget and allow no spending increase anywhere across the board in next years budget

That way everyone shares the pain equally

 

[leftwinger]

REG: NEW SPENDING BILL.

This “deal” normalizes record high spending started during the pandemic. It sets these historically high spending levels as the baseline for all future spending. The bill then grows govt even more each year at about ~1%.
After factoring in a small cut to discretionary spending over the next 2 yrs, we are still talking about ~$6T more or less in spending bc of large increases in spending elsewhere. In other words, it’s a wash spending-wise.
Govt grew massively over the past 3 years. This growth was supposed to be emergency funding only during COVID. During this time, govt grew 40% or by $2 trillion from 2019 to 2023. We went from spending just over $4T to spending just over $6T.

This deal keeps that record high spending intact and makes it the baseline for all spending. Wild.
The bill doesn’t actually set a debt limit. Rather it suspends the debt limit entirely until Jan. 2, 2025 and there is no actual amount capping the debt ceiling.
Some say there will be a $2T deficit in 6 years, but that CBO guesstimate relies on spending caps that do not exist and are not binding in any way in this deal.

And only in DC is a bill clawing back small amounts of unspent COVID funds considered a cut.
They tell us this bill cuts $41b in its first year; about the same amount as the unspent COVID funds. Pretty convenient. Also not a cut.
And on that note, do we really think the states will send back unspent COVID funds or will they find a way to use the money so they don’t have to send it back?

Fauchi Flu Same as Obiden 1.0 housing Meltdown: Congress Creates a crisis, Added in ~$1T stimulus.....then bake that into the budget for the remaining 7-8 years.

 

[multivita-man]

Solving the problem is simple

Freeze the current budget and allow no spending increase anywhere across the board in next years budget

That way everyone shares the pain equally

That doesn't look at the impact of spending cuts, some of which ironically could end up leading to higher deficits. Cutting IRS enforcement, as this apparent agreement has done, seems good on the surface, but it's going to lead to less revenue and it may encourage cheating or non-compliance -- centrist economists and the CBO say that, not just woke me. That's one telltale sign that Republicans aren't serious about cutting the deficit. Taking the Trump tax cuts off the table is another example.

OTOH, the age of SS and Medicare needs to be raised by a year or two. Both parties would take a hit but the Democrats more so because their voters are counting on them not to do it. Biden should also maybe find some of those student debt holders to sacrifice. They won't, so that's how I know the Dems aren't that serious either.

 

[leftwinger]

Not enough to keep up with spending; debt/GDP ratio increased every year after 2017. Not substantially until 2020, but still, it was irresponsible to introduce those tax cuts.

Neither party is having a serious discussion about the sacrifices that will need to be made to return to fiscal sanity.

GDP would have been increasing just fine without your boys launching Fauci Virus. Always spinning the numbers aren't we. Those years off the books.

 

[multivita-man]

GDP would have been increasing just fine without your boys launching Fauci Virus. Always spinning the numbers aren't we. Those years off the books.

I'm talking about 2018 and 2019, which is before the virus. The debt-GDP ratio went up then, too. Not nearly as much, obviously, but they still increased.

But pandemics happen and MAGAs need to get over it already.

 

[kaz]

A long time Republican talking point on the budget is that we allegedly have a spending problem and don’t have a revenue problem. They have it exactly backwards. It’s time to fact check Republican gaslighting on spending and taxes.
The GOP is gaslighting us on spending when they claim that spending is allegedly out of control. Let’s look at the facts. Federal spending was 31.2 percent of GDP in 2020. Federal spending was 25.6 percent of GDP in 2022. Federal spending will be 24 percent of GDP under Biden’s budget. Spending is down significantly since Biden took office.

Bush was the only two term president in American history to preside over a decline in middle class incomes during his two terms as president. Moreover, at the time, Bush had the worst job creation record since Herbert Hoover.

The Trump jobs record was worse. In 2020, the U.S. economy lost a net 10 million jobs. Weekly unemployment claims between March and December 2020 exceeded the worst week of the 2008–09 recession. Trump left office after nearly 50 straight weeks of the worst job losses in American history. Trump was the first president since the Great Depression to leave office with fewer jobs in the country than when he was inaugurated.

Trump promised that the 2017 tax cuts would: 1. Deliver a $4,000 pay raise to the middle class; 2. Pay for themselves; 3. Kick off an investment boom; 4. Generate 6% GDP growth. 5. Generate more job growth.

None of this happened. Even before the pandemic, middle class incomes rose a paltry 1% adjusted for inflation; the deficit increased from $585 billion to $1 trillion; 85% of the tax cuts were spent on dividends and stock buybacks; there was no investment boom; GDP growth was no different than it was under Obama; and job growth declined by 20%. By Trump’s own criteria, the 2017 tax cuts were a failure.

Daily Kos

Daily Kos is a progressive news site that fights for democracy by giving our audience information and resources to win elections and impact government. Our coverage is assiduously factual, ethical, and unapologetically liberal. We amplify what we think is important, with the proper context—not...

m.dailykos.com

Mod Edit - Deleted. Clean start

What is wrong with you? It's a clear spending problem. You've lost your mind

 

[leftwinger]

I'm talking about 2018 and 2019, which is before the virus. The debt-GDP ratio went up then, too. Not nearly as much, obviously, but they still increased.

But pandemics happen and MAGAs need to get over it already.

You get over it. Man-made catastrophe launched to kill the economy. Need to punish those involved. Fauchi....whomever.
Pandemic? the new buzzword of the loony leftist. I don't remember anything like it ever.....maybe a minor Flu bug?

 

[multivita-man]

You get over it. Man-made catastrophe launched to kill the economy.

 

[Independent thinker]

A long time Republican talking point on the budget is that we allegedly have a spending problem and don’t have a revenue problem. They have it exactly backwards. It’s time to fact check Republican gaslighting on spending and taxes.
The GOP is gaslighting us on spending when they claim that spending is allegedly out of control. Let’s look at the facts. Federal spending was 31.2 percent of GDP in 2020. Federal spending was 25.6 percent of GDP in 2022. Federal spending will be 24 percent of GDP under Biden’s budget. Spending is down significantly since Biden took office.

Bush was the only two term president in American history to preside over a decline in middle class incomes during his two terms as president. Moreover, at the time, Bush had the worst job creation record since Herbert Hoover.

The Trump jobs record was worse. In 2020, the U.S. economy lost a net 10 million jobs. Weekly unemployment claims between March and December 2020 exceeded the worst week of the 2008–09 recession. Trump left office after nearly 50 straight weeks of the worst job losses in American history. Trump was the first president since the Great Depression to leave office with fewer jobs in the country than when he was inaugurated.

Trump promised that the 2017 tax cuts would: 1. Deliver a $4,000 pay raise to the middle class; 2. Pay for themselves; 3. Kick off an investment boom; 4. Generate 6% GDP growth. 5. Generate more job growth.

None of this happened. Even before the pandemic, middle class incomes rose a paltry 1% adjusted for inflation; the deficit increased from $585 billion to $1 trillion; 85% of the tax cuts were spent on dividends and stock buybacks; there was no investment boom; GDP growth was no different than it was under Obama; and job growth declined by 20%. By Trump’s own criteria, the 2017 tax cuts were a failure.

Daily Kos

Daily Kos is a progressive news site that fights for democracy by giving our audience information and resources to win elections and impact government. Our coverage is assiduously factual, ethical, and unapologetically liberal. We amplify what we think is important, with the proper context—not...

m.dailykos.com

Mod Edit - Deleted. Clean start

LOL. So, you think the rich can fork over 32 trillion dollars? We very obviously have a spending problem.

 

[shockedcanadian]

A long time Republican talking point on the budget is that we allegedly have a spending problem and don’t have a revenue problem. They have it exactly backwards. It’s time to fact check Republican gaslighting on spending and taxes.
The GOP is gaslighting us on spending when they claim that spending is allegedly out of control. Let’s look at the facts. Federal spending was 31.2 percent of GDP in 2020. Federal spending was 25.6 percent of GDP in 2022. Federal spending will be 24 percent of GDP under Biden’s budget. Spending is down significantly since Biden took office.

Bush was the only two term president in American history to preside over a decline in middle class incomes during his two terms as president. Moreover, at the time, Bush had the worst job creation record since Herbert Hoover.

The Trump jobs record was worse. In 2020, the U.S. economy lost a net 10 million jobs. Weekly unemployment claims between March and December 2020 exceeded the worst week of the 2008–09 recession. Trump left office after nearly 50 straight weeks of the worst job losses in American history. Trump was the first president since the Great Depression to leave office with fewer jobs in the country than when he was inaugurated.

Trump promised that the 2017 tax cuts would: 1. Deliver a $4,000 pay raise to the middle class; 2. Pay for themselves; 3. Kick off an investment boom; 4. Generate 6% GDP growth. 5. Generate more job growth.

None of this happened. Even before the pandemic, middle class incomes rose a paltry 1% adjusted for inflation; the deficit increased from $585 billion to $1 trillion; 85% of the tax cuts were spent on dividends and stock buybacks; there was no investment boom; GDP growth was no different than it was under Obama; and job growth declined by 20%. By Trump’s own criteria, the 2017 tax cuts were a failure.

Daily Kos

Daily Kos is a progressive news site that fights for democracy by giving our audience information and resources to win elections and impact government. Our coverage is assiduously factual, ethical, and unapologetically liberal. We amplify what we think is important, with the proper context—not...

m.dailykos.com

Mod Edit - Deleted. Clean start

Why not address both sides of the ledger? You can raise taxes on corporations to make up the revenue. However, my guess is that you would also have to RAISE tariffs from some countries (not just China) in order to, yes, protect some industries and discourage some corps from leaving. If you do not, they will simply move due to higher taxes. So as much as I am a libertarian, when capital is TOO fluid and it just becomes an issue of currency arbitrage, well, then govt must make them an offer they can't refuse...

 

[BluesLegend]

It’s Not A Spending Problem. It’s A Revenue Problem​

Right, the Federal government collects, borrows and SPENDS $6,000 BILLION a year and it's not a spending problem

 

[Rawley]

You get over it. Man-made catastrophe launched to kill the economy. Need to punish those involved. Fauchi....whomever.
Pandemic? the new buzzword of the loony leftist. I don't remember anything like it ever.....maybe a minor Flu bug?

Here's the flip side.

Federal Net Outlays as Percent of Gross Domestic Product

Graph and download economic data for Federal Net Outlays as Percent of Gross Domestic Product (FYONGDA188S) from 1929 to 2024 about outlays, federal, Net, GDP, and USA.

fred.stlouisfed.org

 

[kaz]

A long time Republican talking point on the budget is that we allegedly have a spending problem and don’t have a revenue problem. They have it exactly backwards. It’s time to fact check Republican gaslighting on spending and taxes.
The GOP is gaslighting us on spending when they claim that spending is allegedly out of control. Let’s look at the facts. Federal spending was 31.2 percent of GDP in 2020. Federal spending was 25.6 percent of GDP in 2022. Federal spending will be 24 percent of GDP under Biden’s budget. Spending is down significantly since Biden took office.

Bush was the only two term president in American history to preside over a decline in middle class incomes during his two terms as president. Moreover, at the time, Bush had the worst job creation record since Herbert Hoover.

The Trump jobs record was worse. In 2020, the U.S. economy lost a net 10 million jobs. Weekly unemployment claims between March and December 2020 exceeded the worst week of the 2008–09 recession. Trump left office after nearly 50 straight weeks of the worst job losses in American history. Trump was the first president since the Great Depression to leave office with fewer jobs in the country than when he was inaugurated.

Trump promised that the 2017 tax cuts would: 1. Deliver a $4,000 pay raise to the middle class; 2. Pay for themselves; 3. Kick off an investment boom; 4. Generate 6% GDP growth. 5. Generate more job growth.

None of this happened. Even before the pandemic, middle class incomes rose a paltry 1% adjusted for inflation; the deficit increased from $585 billion to $1 trillion; 85% of the tax cuts were spent on dividends and stock buybacks; there was no investment boom; GDP growth was no different than it was under Obama; and job growth declined by 20%. By Trump’s own criteria, the 2017 tax cuts were a failure.

Daily Kos

Daily Kos is a progressive news site that fights for democracy by giving our audience information and resources to win elections and impact government. Our coverage is assiduously factual, ethical, and unapologetically liberal. We amplify what we think is important, with the proper context—not...

m.dailykos.com

Mod Edit - Deleted. Clean start

We have 32 trillion in debt and they just agreed to 4 trillion more. That is a SPENDING problem. We have plenty of revenue. You can't add 4 trillion to taxes, it would wreck the economy

 

[skews13]

Show evidence. What, no evidence, only empty attacks?

Right !!!!

They’ve been conditioned and gaslighted so long, they only have the same talkingpoint they’ve been programmed to give.

The numbers are the numbers. Try as they may, and try as they might, there is no escaping them.

Get rid of the Bush and Trump tax cuts, the debt problems go away. The other side of that is freezing defense spending, or even cutting it.

 

[kaz]

They’ve been conditioned and gaslighted so long, they only have the same talkingpoint they’ve been programmed to give.

The numbers are the numbers. Try as they may, and try as they might, there is no escaping them.

Get rid of the Bush and Trump tax cuts, the debt problems go away. The other side of that is freezing defense spending, or even cutting it.

View attachment 790235

Taxes high enough to fund Biden spending levels would destroy the economy. Don't you have children? Do you care at all how much debt we dump on them? We're at 32 trillion going to 36 trillion and you want more. How much of our debt is fair to dump on them? 50 trillion? 100 trillion?

 

[BluesLegend]

Taxes high enough to fund Biden spending levels would destroy the economy. Don't you have children? Do you care at all how much debt we dump on them? We're at 32 trillion going to 36 trillion and you want more. How much of our debt is fair to dump on them? 50 trillion? 100 trillion?

Some want to borrow and spend like there's no tomorrow and stick future generations with OUR debt, that's low.

 

[kaz]

Some want to borrow and spend like there's no tomorrow and stick future generations with OUR debt, that's low.

Remember when the Democrats were shrieking that 20 billion for the wall would break us? They're the dumbest people. I mean the voters. Democrat politicians are evil