Posted on 09/26/2013 8:10:22 AM PDT by Kaslin
How much would the U.S. federal government need spend per household to even come close to balancing the annual U.S. federal budget?
The answer is presented in a single picture below:
Comparing the relative location of the Zero Deficit Line on the chart, which is based on the overall trend of the U.S. federal government's total receipts with respect to median household income from 1967 through 2008 (before President Obama was sworn into office), with the level of spending done by the U.S. federal government in 2012, we find that the federal government would have to reduce its spending by $7,690 per U.S. household to even get anywhere close to a balanced budget.
To get a sense of how much money that really is, please consider that in 2012, there were 122,438,420 U.S. households.
Also keep in mind that the U.S. national debt will only continue to rise if the amount of federal government spending keeps falling on the wrong side of the Zero Deficit Line.
White House Office of Management and Budget. The Budget for Fiscal Year 2014, Historical Tables. Table 1.1. - Summary of Receipts, Outlays, and Surpluses or Deficits (-): 1789-2017. [PDF Document]. 10 April 2013.
U.S. Census. Current Population Survey. Historical Income Tables: Households. Table H-5. Race and Hispanic Origin of Householder - Households by Median and Mean Income. [Excel Spreadsheet]. 17 September 2013.
The fed govt collects about a $trillion a year in income taxes. With a $trillion deficit, it would need to double income tax collections to balance the budget with no spending cuts.
It ain’t gonna happen anytime soon.
It shot up under Obama, but note that it also shot up under Lyndon Baines Bush from 2000 onward. We have not had a fiscally conservative government in this country since Ronald Reagan. The closest we came after him — and its a sad statement — was Bill Clinton and that’s because we had a somewhat conservative Congress to hold him back on spending.
The last year number was about $1.5 trillion in personal and corporate income tax.
But notice that median income ALSO was still going up. The amazing thing about the Obama chart is how badly median income was. No other recession has a curve that pushed median income backwards for so long.
The only way to increase revenues is to LOWER marginal rates, not raise them.
A slight correction: It didn’t just shot up under that arrogant pos occupant of 1600 Pennsylvania Ave, it shot up like a rocket.
Guys, heads up.
This is a look over there moment. Word is the CR under debate had a level of spending in it out to Dec 15. Reid is pulling it back to Nov 15, but holding the spending level and THAT WILL BUST THE SEQUESTER LIMITS.
This Obamacare fight is being used to conceal a huge ramp in spending that breaks the Sequester law, which is the only thing that has restrained a smidgeon of spending in modern history.
of course
And you forgot to mention that The first Rapist also was the first president to successfully pass an unconstitutional retroactive tax increase.
Plus the first a*****e to tax Social Security Income.
Pretty much permanent tax increases.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.