Regaining Control Of The National Deficit

[kyzr]

Still, in no way, does this answer how Texas will replace the $89B it takes from the feds. Keep swinging.

TX has a surplus and is cutting taxes by $10b. $89b is no problem in a $1.5T TX economy

https://gov.texas.gov/uploads/files/organization/budget-policy/Proposed_State_Budget_for_FY_2026-2027.pdf

 

[candycorn]

TX has a surplus and is cutting taxes by $10b. $89b is no problem in a $1.5T TX economy

https://gov.texas.gov/uploads/files/organization/budget-policy/Proposed_State_Budget_for_FY_2026-2027.pdf

The surplus is 23B... All you got to do now is come up with the other $66B.

Where is that coming from?

 

[candycorn]

That's just it. The states don't. The national debt is paid by the federal government. But, new expenditures are transferred to the states so we no longer have deficits adding even more money onto the national debt. From now on the national debt either stays where it is or goes down. No adding more to it.

So we’re still paying federal taxes but not getting any federal services?

Your idea sounds batshit crazy.

 

[Ace Nova]

Lol, no.

?

Don't take my word for it - read the link.

 

[Crepitus]

?

Don't take my word for it - read the link.

They get some of the lowest numbers as a percentage of their budget of any state.

 

[BluesLegend]

Every family of 4 in America owes $220,000 of the national debt, and is borrowing another $80k a year. In 10 years they will owe $3 million and that doesn't even include the interest.

It's over, the idiots in Washington bankrupted us.

 

[ThunderKiss1965]

And red states would look exactly like poor African third world countries within 6 months.

You mean Blue cities. The area where I live within a Red State will be fine without your unconstitutionally over intrusive Federal Government.

 

[Ace Nova]

They get some of the lowest numbers as a percentage of their budget of any state.

That's because California has the largest budget and highest population out of all states.

It does not change the fact that they receive roughly $163 Billion in Federal Aid -placing them at #1 ahead of 2nd place New York at roughly $110 Billion.

That said, California does a decent job in terms of "%" of their budget. And it is a "donor state" meaning it, its citizens and businesses pay more in Federal Tax than it receives in Federal Government aid.

Out of the 29 "donor states" in 2025 17 of them were "Red States" in this past election.

So contrary to "popular belief" blue states - across the board - would suffer just as much - if not more - than many red states if funding is cut.

The state that relies on Federal Government aid as part of their budget the most is Vermont - a blue state - followed by Alaska and West Virginia - red states.

Donor States 2025

worldpopulationreview.com

Most red states have substantially smaller budgets than California or New York - so naturally, the likelihood of the aid being a larger part of their budget is more common.

That said - it is a lot harder to come up with 163 billion dollars as a whole - if your the State of California - with the budget deficit and debt they have - than it would be for a state like Tennessee to need to come up with $21 billion (their total Federal aid) when having no deficit and a surplus of $39+ billion (They could easily use their surplus to compensate for the entirety of the Federal Aid if they were to lose it).

Debt by State 2025

worldpopulationreview.com

 

[Crepitus]

That's because California has the largest budget and highest population out of all states

Ayup, so you understand.

 

[kyzr]

Every family of 4 in America owes $220,000 of the national debt, and is borrowing another $80k a year. In 10 years they will owe $3 million and that doesn't even include the interest.

It's over, the idiots in Washington bankrupted us.

Graphically...

 

[Ace Nova]

Every family of 4 in America owes $220,000 of the national debt, and is borrowing another $80k a year. In 10 years they will owe $3 million and that doesn't even include the interest.

It's over, the idiots in Washington bankrupted us.

76% of the debt is owned domestically and 21% of the debt is owned by the government itself. That means that we own 76% of it "to ourselves". So no, each family of 4 doesn't really owe $220,000 of the Federal debt. They typically put that number out there so people realize how much it is - but as "technically owing it" - no - each family is only responsible for their own personal debt.

The problem with having a substantially high debt isn't necessarily the amount owed and needing to pay it back - the issue is the interest on it (as you mentioned) and the risk of someday missing an interest payment - or worse yet - defaulting repeatedly, etc

If that were to happen, depending on the severity - best case scenario would be The U.S. would drop its credit rating, costing the government even more money (in terms of interest) to borrow in the future. A "mid-case" scenario could cause massive inflation - devaluing the dollar. Worst case scenario would be really bad - there could be an internal economic collapse followed by a worldwide economic collapse.

But rest assured - no one - including other countries - wants any of these possibilities to happen - so there would be a myriad of procedures, etc put in place prior to something of the sort happening.

As far as "paying down the debt" that should hopefully begin to happen at some point after the budget is balanced. That said, the priority is to eliminate the deficit first and balance the budget. If the US were to permanently run a balanced budget moving forward, the debt itself would gradually "pay itself" down in terms of value because of inflation over decades, etc. For example, $36 trillion in 100 years won't be worth $36 trillion.

$18 trillion dollars in 1925 would be worth $1 trillion today. Which means if the rate of inflation stays the same and we do not add to the debt - the $36 trillion dollar debt could be worth around $2 trillion in a 100 years - obviously making it much easier to pay down as time moves on.

That said, inflation is countered by the interest we pay on the debt so it would be in our best interest to pay it down gradually over time instead of waiting 100 years.