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Topic: Federal Debt and Deficit

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847badgerfan

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Re: Federal Debt and Deficit
« Reply #42 on: July 24, 2024, 06:26:31 PM »
Exactly.  100 years of higher taxes and getting less for them.
People won't stand for that.
If you could convince me that raising my taxes would not lead to increased spending, I'd sign up in a minute.

Of course, I happen to care about our Republic and would do anything I could to keep it.

I'm weird.
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utee94

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Re: Federal Debt and Deficit
« Reply #43 on: July 24, 2024, 06:41:48 PM »
We already pay enough in taxes.  Hold them where they are and cut spending. 


OrangeAfroMan

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Re: Federal Debt and Deficit
« Reply #44 on: July 24, 2024, 06:58:15 PM »
If you could convince me that raising my taxes would not lead to increased spending, I'd sign up in a minute.

Of course, I happen to care about our Republic and would do anything I could to keep it.

I'm weird.
You can also afford it.  Patriotism?
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MrNubbz

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Re: Federal Debt and Deficit
« Reply #45 on: July 24, 2024, 09:47:16 PM »
If you could convince me that raising my taxes would not lead to increased spending, I'd sign up in a minute.

Of course, I happen to care about our Republic and would do anything I could to keep it.

I'm weird.
Hardly that DC cesspool is an anarchist's dream
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Hawkinole

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Re: Federal Debt and Deficit
« Reply #46 on: July 24, 2024, 11:30:39 PM »
My point is simply that adding a prescription drug benefit to Medicare without addressing the MASSIVE cost of that prescription drug benefit is tantamount to voting for unicorns and ferries. 
You write carefully, succinctly, and rarely have a typographical or spelling error when posting. I gotta tell you ... this typgraphical error brought a smile to my face, and damn near made me chuckle.

utee94

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Re: Federal Debt and Deficit
« Reply #47 on: July 25, 2024, 02:59:13 AM »
Musta been auto-correct. :)


847badgerfan

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Re: Federal Debt and Deficit
« Reply #48 on: July 25, 2024, 08:11:15 AM »
We already pay enough in taxes.  Hold them where they are and cut spending.


What would get cut? I can think of a lot of "pork" that could get cut, but it's not a whole lot of money compared to what we are up against.

Audits would be a good thing. I think companies are getting paid way too much for their services (I'm looking at you, defense contractors).
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FearlessF

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Re: Federal Debt and Deficit
« Reply #49 on: July 25, 2024, 08:15:20 AM »
so, it's not a whole lotta money

Let's cut it because it's the right thing to do and it is some money

too many think since it won't do too much, why bother
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Cincydawg

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Re: Federal Debt and Deficit
« Reply #50 on: July 25, 2024, 08:41:44 AM »
All of us want to cut frivolous spending.  It's obviously not something government can manage no matter who is in charge.  I've seen this on a much much smaller scale where I worked.  

A problem in dealing with defense contractors like Lockheed or Boeing is that if you really held them to account on the "F-35" and it's ilk, you'd put them out of business.  They bid on some project, and may underbid, and maybe build a couple prototypes that get accepted, and then the cost turns out to be 2-3-4x.

The US spent more money on the B-29 project than the Manhattan project.  And we didn't have any other bomber at the time able to lift the atomic bomb and carry it those distances.

medinabuckeye1

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Re: Federal Debt and Deficit
« Reply #51 on: July 25, 2024, 08:54:54 AM »
What would get cut? I can think of a lot of "pork" that could get cut, but it's not a whole lot of money compared to what we are up against.

Audits would be a good thing. I think companies are getting paid way too much for their services (I'm looking at you, defense contractors).
Well . . .
so, it's not a whole lotta money

Let's cut it because it's the right thing to do and it is some money

too many think since it won't do too much, why bother
Like I said before, I get the sentiment and you have to start somewhere but you can't fill a multi-Trillion dollar hole with a few Billion here and there.  

Here is a CBO site that shows 2023 Expenditures and Revenues.  I think it is helpful to view them as a percentage of GDP so here are outlays:
  • 5.0% Social Security
  • 3.4% Nondefense discretionary
  • 3.1% Medicare
  • 3.0% Defense
  • 2.4% Net Interest
  • 2.3% Medicaid
  • 1.9% Other
  • 1.7% Income Security Programs
  • 22.7% Total (note, the above totals 22.8%, the 0.1% difference is due to rounding.  Which brings up a good point, 0.1% of GDP is literally BILLIONS of dollars and in this context that is a mere rounding difference).  
Revenues:
  • 8.1% Individual Income Taxes
  • 6.0% Payroll Taxes
  • 1.6% Corporate Income Taxes
  • 0.8% Other
  • 16.5% Total

Total Revenues are 16.5% of GDP which is historically close to but maybe a hair below the postwar normal.  The record is 19.8% achieved in both 1945 and 2000.  In 1944 Federal Revenues were 19.5% and they haven't exceeded 19% in any other year.  Based on that, I would submit that roughly 19% is close to a hard cap on the amount that the Federal Government can realistically collect.  Thus, no more than 2.5% of GDP can come from increased revenues.  

The deficit for 2023 was a staggering 6.2% of GDP.  What makes that really troubling is that we had that enormous deficit on pretty solid revenues and without any major calamity to explain it.  It isn't like 1942-1946 when the large deficits were explained by our involvement in and spending for WWII.  It isn't even like 2009-2011 when the deficits were based on stimulatory spending and tax cuts in response to the credit bubble nor even 2020-2022 when the deficits were based on stimulatory spending in response to COVID.  

FearlessF

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Re: Federal Debt and Deficit
« Reply #52 on: July 25, 2024, 09:03:21 AM »
Well . . .Like I said before, I get the sentiment and you have to start somewhere but you can't fill a multi-Trillion dollar hole with a few Billion here and there. 
I understand.
That doesn't excuse the fact that if it's wasteful, it needs to be cut.

It helps the mindset.
Certainly does in my personal life with money management
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utee94

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Re: Federal Debt and Deficit
« Reply #53 on: July 25, 2024, 09:07:17 AM »
Gotta start somewhere.

And I'm not suggesting that the cuts will be "painless."  Deep cuts will be painful, and will almost certainly stall the economy in the short term.

847badgerfan

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Re: Federal Debt and Deficit
« Reply #54 on: July 25, 2024, 09:10:41 AM »
I guess I would need to take a deep dive into what our discretionary spending actually goes to.

3.4% of GDP seems very high.
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Cincydawg

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Re: Federal Debt and Deficit
« Reply #55 on: July 25, 2024, 09:19:37 AM »
I agree of course with "starting somewhere", fine.  What politicians do is claim to cut $X "somewhere" when massive spending is going on elsewhere they didn't cut.

And I agree "we" are responsible in this form of government, which I've come to see as the core of the problem.

 

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