cancel
Showing results for 
Search instead for 
Did you mean: 
ISUMan
Frequent Contributor

Re: PS

I'm sick of hearing people refer to tax cuts as "unfunded expenses".  A tax cut is not an expense, it's a cut in "potential" revenue.  In order to be an expense it is something that demands an outflow based on a good or service received.  A tax cut is simply letting people keep the money that is rightly theres.  If you believe that our money is the govt's property from the get go to distribute as they see fit then I can understand this "unfunded expense" arguement.  Then again that is Marxism.

0 Kudos
GoredHusker
Senior Contributor

Re: PS

Wrong Pal, $hit hit the fan during the 06' midterm elections when D's took both the house and the senate.  This set up the meltdown we now know as the 08' recession.  In 00', Bush Jr. inherited an economy headed towards recession.  Then, he proceeded to spend money like a drunken sailor on two unfunded wars.  However, the big deficits started after the 06' midterms.  Bush Jr. and Obama are basically the same.  Bush Jr. wasted a tremendous amount of money, and Obama has wasted a tremendous amount of money.  Bush Jr. gave us an unfunded prescription drug plan which is another unfunded social program.  Obama gave us Obamacare which is another unfunded social program.  Who says the American public doesn't know what they want?  When it's all said and done, we're going to have have 16 years of the exact same leadership.    

 

Is the balance budget you refer to the same as those so called surpluses Clinton supposedely had after raiding the trust fund?  I don't agree that SS shouldn't be addressed with the fiscal cliff considering how often it has been raided only to try to make other parts of the budget appear decent.  Plus, if it isn't addressed now it won't be addressed anytime soon.  Bush Jr. and Obama have been great for the rich, but they've been horrible for the poor.  Their onslaught of the U.S. dollar has created massive quantities of poor people.  We now have enough people on food stamps that the food stamp program now costs roughly 100 BILLION a year.  If the POTUS isn't going to do anything, then Congress must take the bull by the horns.  

lsc76cat
Senior Advisor

Re: PS

Bush made the same mistake that LBJ did when he listened to the people that Eisenhower warned the country about.  Kennedy was smart enough not to let them push him into Vietnam.  Unfortunately Bush didn't listen to his dad and Scowcroft when they told him to stay out of Iraq.

Prescription drug program came about because several states were initiating reforms that the drug companies didn't like.  They went and got the feds to step in and give them something more to their liking.

There's a reason the real estate market stayed stong around DC when the rest of the east coast and most of the country was in a slump.  All those bureaucrats and lobbyists gotta live somewhere.

0 Kudos
kraft-t
Senior Advisor

Simple math for the logically challenged

You make deposits in a Bank. The bank loans the funds out to borrowers and borrowers pay it back with interest.

 

The SS trust fund is excess revenues over and above what is consumed for benefits. 2 trillion and counting.

 

When your bank and the SS trust fund loan out money, they do so to EARN interest on the funds instead of allowing the funds to sit idle without realizing a return. Most grownups understand that.

 

If you contend that money borrowed from the bank or the SS trust fund is stolen, then remind me not to lend you money. The loans will be repaid whether government or the bank has the funds. If not they will borrow it and repay with interest. Or they will tax your sorry butt a few dollars more so that our  commitment to lenders remains unbroken. The full faith and credit of the Unitied States has never been questioned until a few nameless idiots decided that default was an option.

 

So I suppose you will default on bond issues to China, Saudi Arabia american bond holders and the senior SS trust fund.

 

Yes Kraft-t is coherent. He does expect government to pay their bills one way or the other.

 

 

0 Kudos
jec22
Veteran Advisor

Re: Simple math for the logically challenged

Kraft, let me put this in simple terms.   I own a business, Uncle Sam's Farms.  I am showing a profit of one million on my cattle side, but the hogs and the dairy are down 20 million.  I have no more access to credit.  Do you think when I go belly up the bankers are going to say, hey keep the one million and cattle, we will just eat the loss on the hogs and dairy?

 

All the money goes into one pot.   The one million and cattle were just used to up the credit line last year to cover the hog and dairy losses. 

 

So the game works for SS as long as you keep printing money and/or can keep borrowing money. 

 

Separate fund....only in your dreams.

0 Kudos
Mizzou_Tiger
Senior Advisor

Re: OptionEye....Nov 27th

Lmao......krafty........you are an f-ing looney toon empty tin can.....

I think bobblehead has railed you one too many times.........and went a little too deep......you have brain damage.....
0 Kudos
Silverwheaton
Senior Contributor

Re: Simple math for the logically challenged

Kraft-T,

You just need to go and take accounting 101.  Lol.  Please take time to understand the Wall Street Journal article I linked to, and address the problem described therein.  Here is an important paragraph from the article:

 

  The actual liabilities of the federal government—including Social Security, Medicare, and federal employees' future retirement benefits—already exceed $86.8 trillion, or 550% of GDP. For the year ending Dec. 31, 2011, the annual accrued expense of Medicare and Social Security was $7 trillion. Nothing like that figure is used in calculating the deficit. In reality, the reported budget deficit is less than one-fifth of the more accurate figure.

 

Partial default is not an option!!  It is written in stone! We can’t increase taxes enough to stop partial default because of this:

 

When the accrued expenses of the government's entitlement programs are counted, it becomes clear that to collect enough tax revenue just to avoid going deeper into debt would require over $8 trillion in tax collections annually. That is the total of the average annual accrued liabilities of just the two largest entitlement programs, plus the annual cash deficit.

 

  Nothing like that $8 trillion amount is available for the IRS to target. According to the most recent tax data, all individuals filing tax returns in America and earning more than $66,193 per year have a total adjusted gross income of $5.1 trillion. In 2006, when corporate taxable income peaked before the recession, all corporations in the U.S. had total income for tax purposes of $1.6 trillion. That comes to $6.7 trillion available to tax from these individuals and corporations under existing tax laws.

In short, if the government confiscated the entire adjusted gross income of these American taxpayers, plus all of the corporate taxable income in the year before the recession, it wouldn't be nearly enough to fund the over $8 trillion per year in the growth of U.S. liabilities. Some public officials and pundits claim we can dig our way out through tax increases on upper-income earners, or even all taxpayers. In reality, that would amount to bailing out the Pacific Ocean with a teaspoon. Only by addressing these unsustainable spending commitments can the nation's debt and deficit problems be solved.

 

At the very minimum we are going to have to do means testing for social security benefits or raise the retirement age so that the numbers work!  So therefore some of that money that the trust fund loaned out will not be paid back!  Quite frankly the US is BANKRUPT and will have to default.   And its debts are going to have to be written down one way or another.  I don’t like it any better than you or any other taxpayer.  But that is the way it is.  DON’T IGNORE THE NUMBERS IN THAT ARTICLE!  NUMBERS DON”T LIE.   People lie, but these numbers are not disputed by accountants on both sides of the aisle.

0 Kudos
Silverwheaton
Senior Contributor

Re: Simple math for the logically challenged

JEC22,

 

Very good comparison!  Pretty plain to understand.

0 Kudos
kraft-t
Senior Advisor

Do you have any idea

How immature you sound?

0 Kudos
Mizzou_Tiger
Senior Advisor

Re: OptionEye....Nov 27th

Krafty.......you can't do simple math......yet a 5 year old can........

Who's immature??????

You are a freakin empty tin can.......and some how find a way to make yourself look even more ignorant every time you post.....
0 Kudos