The government figures on 8%. That’s what you have to pay tax on. Anything over that is supposed to be declared as well of course.
For you folks who missed it, the CBO re-evaluated 2024’s fiscal deficit — upwards to $1.9T.
And for you folks who think the answer is lower spending, here you go:
https://en.wikipedia.org/wiki/United_States_federal_budget
Study it carefully and don’t just wave a hand and announce X can be cut and Y is fraud and Z is waste.
Revs $4.4T, Spending $6.3T — deficit $1.9T
Soc Sec and Medicare add to 2.1T spending. Medicaid adds another 0.6T (and before you rage on that, remember it pays 80-90% of elderly nursing home costs).
Interest, with a rate of 3.2% (and climbing as older debt matures and rolls over new instruments with higher rates), is now over $1T. People quote this wrong because they quote last year’s interest rate. It is rising because the Fed is at 5% and is going to stay there until inflation is 2%, which could be years — or never.
DoD 0.8T. Non defense discretionary is the only place you can go for cuts and it’s only 0.9T. This would be food inspection, the FAA, NASA, the VA, Law Enforcement, State.
You can say YEAH, CUT THAT, but all you will accomplish is a few hundred million here and there, and then go to GOP voters and point and say SEE? I CUT SPENDING. BS. You did nothing. You could cut all 0.9T and it would be nothing, with no further air traffic or VA services.
THERE IS NO SOLUTION. IT WENT TOO FAR. Nihilism is ascendant because math is ascendant.