Can anybody in D.C. budget…SS Takes In Plenty!

The budget…the Income of the United States:


The budget...the Expenses of the United States:

A Country Boy’s Approach to Curing The National budget woes…

By L. J. Martin,, a conservative blog

What’s the big problem with the budget…none of those guys must be married.

Let me tell you, you folks in Congress…Democrats and Republicans alike…a lousy $100 billion cut in the budget is pissin’ in the wind.  Of course, you haven’t demonstrated enough good sense not to wet yourself in the past, so maybe it’s an unreal expectation.

During fiscal year 2009, the federal government collected approximately $2.1 trillion in tax revenue. Primary receipt categories included individual income taxes (43%), Social Security/Social Insurance taxes (42%), and corporate taxes (7%).[6] Other types included excise, estate and gift taxes. Tax revenues have averaged approximately 18.3% of gross domestic product (GDP) over the past 40 years, generally ranging plus or minus 2% from that level.  Note the amount we pay into SS, this doesn’t take a budget genius to figure out.

Tax revenues are significantly affected by the economy. Recessions typically reduce government tax collections as economic activity slows. For example, during FY2009, the U.S. government collected about $400 billion less than FY2008. Individual income taxes declined 20%, while corporate taxes declined 50%. At 15% of GDP, the 2009 collections were the lowest level of the past 50 years.[8] Of course if we allow congress to continue to destroy the economy, taxes will be 0% of the budget...because we’ll all be broke and unable to pay.

Social Security was responsible for $701 billion of the national spending in 2010, but was offset by providing 40% of the federal tax income, or $865 billion.  What’s the problem here?  Social Security is paying for itself, unless the overhead is just way to high and charged somewhere else?  Social Security is not the problem.  Lying to the American people is the problem.  Thinking the American people can’t read a budget is the problem.

Defense Department spending is 20% of the 2010 budget, or $668 billion.  Why not offset some of that by charging those to whose aid we continually come.  Afghanistan and Iraq to name a couple.  How about Japan?  How about South Korea?  Hell, if China is going to steal our military secrets none-the-less, why not sell them a few even if only to offset a good chunk of our debt which they hold?  Interest along on the 2010 national debt was $197 billion.  Should we institute a true “free enterprise” approach to our Department of Defense, I’ll be we could knock about a half trillion off that expenditure in a hurry.  And we could actually pay a living wage to our military, if we charged for their services as any other business entity might do.  And it’s about time we got rid of the $600 dollar hammers and the $300 dollar screwdrivers.  Insane.

Medicare & Medicaid represented $793 billion of the 2010 budget.  One FBI sting operation this year shut down cheats who’d stolen over $100 million…and that’s one sting.  If we went after the doctors and clinics who over bill Medicare we’d save more than 25% of that bill in a big rush.  Now if we went after the cheats on the lowest level, those from the guy who hangs a disabled sticker in his car (a pet peeve of mine as he jumps out of his Cad and heads into the gym at a run) and who went to the doc and then billed Medicare for the office visit, to the guy who gets a powered wheel chair because he’s too damn fat and lazy to walk, to the gal who gains weight in order to qualify for a stomach stapling to…well, the list goes on and on, and I guarantee it represents another 10% of the problem.  Now, a goodly portion of the rest is liability actions…attorneys who advertise for claimants and the advertising itself, and visceral juries who give away somebody else’s money to convince themselves how kind THEY are.  And no, insurance companies don’t PAY those ridiculous judgments…they pass the cost on to you and me and the dumb s—t on the jury.  Straighten out the cheats and the theft in Medicare Medicaid and the budget for healthcare will take care of itself.

How many times do those of you with a nervous twitch (because you’re cheating on your wife, or on your income tax) have to be told during the endless T.V. ads that you have nervous leg syndrome before you actually believe it, and convince some doctor who only wants to get you out of his office that you need a prescription.  And the prescription is $200 and you pass it along to Medicare.  And odds are it’s sugar pills which will make you fat and give you diabetes.

Stop drug advertising on T.V.  PERIOD.  You don’t need to advise your doctor what to prescribe for your problem, particularly when your education consists of a 30 second advertisement.  He went to school for a long time to learn that skill. Limit liability lawsuits to actual damages, and you’ve knocked out another 25% of the Medicare Medicaid shortfall.  Besides, advertising is expensive and is merely past on to the consumer as higher drug costs.  Budgeting, in private enterprise, ofttimes means raising prices.

And we haven’t even begun to speak of so called Discretionary spending, $660 billion of the 2010 budget. Discretionary spending is used to fund the Cabinet Departments (e.g., the Department of Education) and Agencies (e.g., the Environmental Protection Agency). Discretionary budget authority is established annually by Congress, as opposed to mandatory spending that is required by laws that span multiple years, such as Social Security or Medicare.

The Federal government spent approximately $660 billion during 2010 on the Cabinet Departments and Agencies, excluding the Department of Defense, representing 19% of budgeted expenditures[47] or about 4.5% of GDP. The 2011 budget included estimated spending for 2010, shown in the graph at right for selected Departments and Agencies with over $10 billion in budget authority.

I could write reams about the waste in the self-serving federal agencies.  I say self-serving because public sector wages have gone up 38% in the last ten years while private sector wages have only gone up 10%.  If that’s not self-serving, I don’t know what is.  And the hell of it is, we don’t need even half of the tit-sucking public employees we’re burdened with.  Without the constraints of “profit” as a result of expenditure, government agencies grow like amoebas, with no rhyme or reason.  There is no real concept of budget when there’s no profit motive.

Do we need a department of commerce (141,000 employees) to help those in the free enterprise private sector do what they do best…make money.  It’s a segment of the Department of Labor (2,000,000, yes that’s two million employees) whose need I question as well.  No, all they do is get in the way and suck up tax dollars.  GET RID OF THEM.  I’m an environmentalist, I love the outdoors, but the Environmental Protection Agency is over the top.  Merge them with the Department of Interior and cut both by more than half in budget and particularly in employees, the EPA has a mere 18,000 employees currently.

By the way, McDonald’s and WalMart, who are America’s largest private employers, each have about 1,500,000 employees, so the Department of Labor has 33% MORE employees than America’s largest private employers.  Do you really think we need any government agency, other than the military, that large.  So is it any surprise that the U. S. budget is OUT OF CONTROL.

Do you really think we need farm subsidies?  The largest farmers in the nation, both corporate and private, laugh all the way to the bank while collecting your money and mine for NOT PLANTING.  When did budget become synonymous with handout?  Ludicrous.

Other so-called Mandatory spending represents a measly $416 billion of the 2010 budget.  Other Mandatory spending is separate from SS and Medicare/Medicaid.  Hell, no one seems to know where that goes.  I’ll bet if WE THE PEOPLE said NO, we’re not spending that, in about two heartbeats the squeal of whomever is now getting it would be heard, and we’d know who and where and if we investigated we’d determine that more than half of that is wasted.

Now, all that said, we can’t summarily throw half of the government workers in this country out on their ears.  Hell, they’d just go on unemployment anyhow, which seems to be America’s largest and most worthless industry these days.  No, we have to plan what to do with displaced government employees.  Budget cannot become synonymous with unemployment either.

I’ve proposed before, and still believe, that tax incentives are the best motivation for hiring.  If we gave a tax incentive to a private company who hired a discharged government employee, say 100% tax credit for the first year of that new hire (effectively the government would be paying for that employee with lost revenue, of course they’d be saving an equal amount as well as he was no longer a government employee), 50% tax credit for the second year (now the government is making money), and 25% for the third, then that labor force would be quickly absorbed.  It would have to be done with the stipulation that no regular employees were discharged in order to take advantage of the program, but it would work well.  We could reduce federal employment by 5% a year and never feel the impact.  That will make a budget impact.

With all that done, the federal expenditures would be reduced by half.  So we’d be spending 1.75 trillion rather than 3.5 trillion and we still be taking in 2.1 trillion, if not more due to increased taxes paid by GROWING BUISINESS, while not penalizing them with new taxes, in fact the tax burden should be less in respect to GNP.  So, that’s 26 billion a year we can apply to the National Debt.  Let’s see, at that rate, we can pay it off in 52 years.  I wonder, did the current thinking in Washington D.C. bury us?  That’s the result of a runaway budget.  We have to grow the economy at the same time as we cut costs.

How can we forget that the budget deficit we hear congress whine about is the budget deficit created by…by congress.  Duh!

But hell,  that’s just one ol’ country boys approach.

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