Overlooked Treasury Report Supports Musk’s Warning About Federal Deficits Sinking the U.S.

Just Facts Daily ^ | 03/12/2025 | James D. Agresti

[Sir_Humphrey]

Overview

Elon Musk recently stated that “rich people” should “be caring more” about federal deficits because “if the ship of America sinks,” “we all sink with it.” This may seem like hyperbole, but a widely overlooked report from the U.S. Treasury shows it is a likely scenario unless major changes are made.

The Treasury report, quietly released in January, shows that if the federal government reported its finances in the same manner that large corporations are required by law to report theirs, the primary measure of federal red ink wouldn’t be $36 trillion in national debt but $143 trillion in debts, liabilities, and unfunded obligations.

[alloysteel]

“Unfunded obligations” is quickly becoming “unfounded obligations”, and somewhere in there is an escape clause for all the chicanery and shenanigans being openly employed to collapse the system.

All is well on the home front. Until it isn’t.

The saga of the Coyote and the Road Runner was not supposed to be an instruction book.

[LouAvul]

Treasury reports confirm that Congress’ drunken spending sprees are sinking the US? Heck, I learned about that in 1st semester high school economics. Didn’t need to spend a billion $ for that info. Anybody with at least two functioning IQ points knows it, which is why Kongress doesn’t know it.

[Alberta's Child]

Massive debt under the weight of unconstrained entitlement spending is the inevitable progression of any democratic society.

[central_va]

Yet, for some strange illogical reason, most RINO deficit hawks hate the tariff which will raise huge amounts of revenue.

[erlayman]

We will be right up there with St Lucia, Liberia and Argentina as the countries with highest percent of revenue from tariffs.

[central_va]

We will be right up there with St Lucia, Liberia and Argentina as the countries with highest percent of revenue from tariffs.

Waht is ypur point? Please, spell it out.

[Sir_Humphrey]

Tariffs won't solve the deficit problem. The proposed tariffs won't even cover the annual interest on the debt. Just do the math. You can't run the government only on tariff revenue.

[central_va]

Tariffs won't solve the deficit problem. The proposed tariffs won't even cover the annual interest on the debt. Just do the math. You can't run the government only on tariff revenue.

Who said they would, but are you saying bringing in an additional $500/yr is a bad thing? Are you? Do the math. I would say between getting rid of the fraud spending, tariffs and lowering income tax rates a balanced budget could be in the near future.

[central_va]

additional $500B/yr...

Fixed it.

[sauropod]

bkmk

[Sir_Humphrey]

tariff argument aside, I'm not saying $500B is a bad thing at all. My point is that it's just a drop in the bucket compared to the 143 trillion debit we will have once we satify all our unfunded liabilities. The cuts in current spending have got to be much deeper and more substantial.

[central_va]

Ok, IMO the proper way to discuss the finances of the US government is to separate spending from revenue. The two things are not related. They are opposite sides of the ledger. A spending cut does not affect revenue and vice versa.

Also, I thought we were talking about the deficit not the debt which, again, are two different things.

[griswold3]

February report on Gov
Receipts $293B
Expenses $603B

[Segovia]

We don’t have a revenue problem, we have a SPENDING problem!

[Resolute Conservative]

We used to run it without an income tax with no problem until we had elected officials start stealing from us and sending money to other countries as aid.

[erlayman]

The point being you also need to consider the extra thousands of inflated prices for the average American. If the most regressive tax imaginable worked more countries would be on the bandwagon. And Trump is talking about doing away with income taxes altogether although that isn’t likely.

[central_va]

If the most regressive tax imaginable worked more countries would be on the bandwagon.

You clearly are not paying attention to what has happening for decades. Virtually every country puts up trade barriers on US exports. Wake up or drop out of the conversation.

[central_va]

Also, am I actually debating with someone that likes PROGRESSIVE taxation on Free Republic? Really?

[Sir_Humphrey]

We don't have a revenue problem, we have a SPENDING problem!

Winner Winner Prime Rib Dinner!