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14 Reasons Why The U.S. Government Will Never Have A Balanced Budget Ever Again

The United States government will never have another balanced budget again.  Yes, you read that correctly.  U.S. government finances have now reached a critical “tipping point” and things are going to spin wildly out of control from this time forward.  Why?  Spending on entitlement programs and interest on the national debt are now accelerating at exponential rates.  Some time around 2020 they will eat up every single dollar of federal revenue that is brought in before a penny is spent on anything else.  Of course the solution to all of this would be to radically cut entitlement programs, but no U.S. politician in his or her right mind would do that.  After all, do you think elderly people (who vote in droves by the way) would vote for you after you just cut their Social Security checks in half?  That is not the way the world works.  You see, democracies always get into trouble once the people realize that they can vote for the candidates that promise them the largest gifts out of the public treasury.  That is where the United States is at now.  Over 100 million Americans now receive direct payments from the United States government.  For millions of Americans, the American Dream now means getting a government check and kicking back and enjoying life.  We have become a nation that is chock full of people that can’t take care of themselves and that are totally dependent on the monolithic nanny state that the U.S. government has created.

Now, the truth is that helping the poor and those who cannot help themselves is always a good thing.

Nobody is denying that.

But are there really 100 million Americans that cannot take care of themselves?

Of course not.

The welfare state has gotten wildly out of control and now we are drowning in an ocean of red ink because of it.

In fact, unless the underlying laws for the entitlement programs are rewritten and unless benefits are cut to the bone, it will be mathematically impossible for the U.S. government to balance the federal budget from this time forward.

You are skeptical of that claim?

The following are 14 reasons why the U.S. government will never have a balanced budget ever again….

#1) Right now, interest on the U.S. national debt and spending on entitlement programs like Social Security and Medicare are somewhere in the neighborhood of 10 to 15 percent of GDP.  By 2080, they are projected to eat up approximately 50 percent of GDP.

#2) Approximately 57 percent of Barack Obama’s 3.8 trillion dollar budget for 2011 consists of direct payments to individual Americans or is money that is spent on their behalf.

#3) Nearly 51 million Americans received $672 billion in Social Security benefits in 2009.  That number is projected to grow substantially in years ahead as waves of Baby Boomers begin to retire.

#4) According to the Congressional Budget Office, in 2010 the Social Security system will pay out more in benefits than it receives in payroll taxes.  That was not supposed to happen until at least 2016.

#5) Back in 1950 each retiree’s Social Security benefit was paid for by 16 workers.  Today, each retiree’s Social Security benefit is paid for by approximately 3.3 workers.  By 2025 it is projected that there will be approximately two workers for each retiree.

#6) The U.S. government “borrowed” 2.5 trillion dollars from the Social Security Trust Fund, and now it turns out that the Social Security system is going to start needing that money.  So where will the U.S. government get an extra 2.5 trillion dollars?

#7) Over 40 million Americans are now on food stamps and the U.S. Department of Agriculture is projecting that more than 43 million Americans will be on food stamps by the end of 2011.

#8) Entitlement programs are not subject to budget freezes or budget cuts – unless Congress changes the underlying laws.

#9) The lobbies for those receiving entitlement payments are extremely powerful.  That is why so few politicians will ever even mention the possibility of cutting Social Security payments.  Old people vote in high numbers, and cutting their benefits would really piss them off.

#10) Interest on the U.S. national debt now makes up 7% of the budget and it is climbing rapidly.  This is an expense that must be paid or else U.S. government finances collapse.

#11) According to the Tax Foundation’s Microsimulation Model, to erase the U.S. budget deficit for 2010, the U.S. Congress would have to multiply the tax rate for every American by 2.4.  That would mean that the 10 percent tax rate would become 24 percent, the 15 percent tax rate would become 36 percent, and the 35 percent tax rate would have to be 85 percent.  Keep in mind that this is before unemployment taxes, Social Security taxes and state taxes are paid.  Do you think any American would ever put up with a federal income tax rate of 85 percent?

#12) According to an official U.S. government report, rapidly growing interest costs on the U.S. national debt together with spending on major entitlement programs such as Social Security and Medicare will absorb approximately 92 cents of every dollar of federal revenue by the year 2019.  That is before one penny is spent on anything else.  As the U.S. government graph below reveals, the financial picture only gets more bleak in the years beyond that….

#13) The present value of projected scheduled benefits exceeds earmarked revenues for entitlement programs such as Social Security and Medicare by about 46 trillion dollars over the next 75 years.  So that means that the U.S government is going to have to find an extra 46 trillion dollars from somewhere to pay all those benefits.

#14) The vast majority of the American people have become soft and don’t know how to take care of themselves any longer.  We now have millions upon millions of people who are totally dependent on the U.S. government for survival.  As the government takes care of more and more people the red ink will increasingly get worse.  At what point will it cause U.S. government finances to totally collapse?

Needless to say, the U.S. government is facing a financial crisis that is absolutely unprecedented in U.S. history.  There is no way out of this mess that does not involve a massive amount of economic pain.

As of June 1st, the U.S. National Debt was $13,050,826,460,886.97.  But as you can see from the data above, things are about to get a lot worse.

We are heading into a financial black hole that will literally rip apart this nation if something is not done right now to fix things.  But the folks down in Washington D.C. don’t seem the least bit interested in fixing things.  In fact, about the only thing they seem determined to do is to spend even more money and get us into even more debt.

The course we are on now can only end badly.  Hopefully our representatives in Washington D.C. will wake up while there is still time.  If not, the tsunami of red ink that is headed our way will devastate all of our lives.

Flojak

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comments

  • Gary

    As I have repeatably said-simply tax the rich hard-budget problems solved. Also close the corporate tax loopholes-budget surplus.

    This is not rocket science.

  • Greg

    Any proposed solutions to this horrendous mess must take into account the fact that we were brought to this point according to a long-term plan and that those with the power to turn things around do not want them to turn around but instead want this nation to go down even further. With that premise in mind, how do we change things?

  • http://www.nds-gear.co.uk/ds-cards/r4-sdhc R4 SDHC

    A fair assessment. It would take a lot to rectify all the damage that’s been caused over the years.

  • Charles

    Sounds like we should raise taxes, particularly on the wealthy. And cut the ridiculously large military budget of course.

  • d.b.

    How about the more than 700 US military bases in more then 100 countries all over the globe? Maybe we could cut them back to defending our own borders instead of everybody else’s. Problem solved.

  • David Lomshek

    Soaking the rich and corporations will NOT solve the problem. There isn’t enough money there if you bankrupt them all. Too, who do you think hires people? Poor people don’t provide jobs for anyone.

    If you decide to tax me to death I’ll just move to Germany or Slovenia or Costa Rica and take my bank account with me.

    The only sane way to fix the problem is to cut spending and/or raise taxes.

  • Bryan DeLaney

    For a long time the offical US government policy has to been to destroy the middle class in the USA. We are now seeing the result. I pray that the citizens of this country will wake up and understand how perverted our federal government has become. Unfortunatly, we may end up in Civil war or a breakup of the country into several regional governments.

  • Gary

    I hate to sound like a broken record=simply tax the rich. The top 1% has 70% of the wealth and income and the top 9% have more than the bottom 91%. This is so obvious that the only reason our elected officials do not bring it up is they are rich and our government is bought and owned by the rich. I hate to say it but Bryan may be correct about some type of uprising. Once the majority of people see their living standard permanently reduced-watch out. We will take our money back from the rich. It is our productivity increases they have stolen from the working people.

  • san dan

    something has to give! anyone here can hazard a guess when things will get so bad that politicians have to do exactly what they have been procrastinating? if all that data shows that things will go bad in 2080 0r 2050.. or some time in distant future, politicins wont bother, so wont people who will probably dead and gone by that time.

  • GT

    Praise God! The Pentagon/CIA/Bankers government is continuing to collapse in slow-no. The real questions are: 1. How to hasten it’s demise and 2. What to do, to survive and rebuild afterward. Pray and prepare my fellow Americans!

  • Greg

    Gary – you are a broken record and it is stuck on a verse that is quite annoying. There are so many things stupid about your mindset that I don’t know where to start but will begin with the question of why you think you have a right to the money out of someone else’s pocket. Why are you stuck in the ignorant mentality that anyone cares enough about you to steal from someone else to give to you? You sound like you need a pacifier to stop you from crying about what you don’t have and mommy needs to go take it from the bad ol’ putty tats that have what you want. If candidates do pretend to care about you whiners and get dupes like you to vote them in, why do you think they will refrain from using the power that dupes like you give them to steal from others and simply enrich themselves and further enslave the dupes like you? And what do you think those horrible people with money are going to do when losers are successful at confiscating more of what they make? They will stop being the major producers of jobs, you dupe! I work long hours and have sacrificed to build a business and resent that losers like you think I should pay a greater percentage for other losers like my brother, for example, who have done nothing with their lives but smoke crack and live off of the government. What he calls charity I call theft because his disgusting lifestyle is funded by people like me. Get a life, loser, and stop whining about what others have. You are making me want to throw up.

  • read mellon

    Andrew Mellon, of Carnegie-Mellon fame, was the most successful US treasurer ever, reducing the national debt by over 9 billion in the 1920’s. How did he do this? By a reducing taxes across the board. His reasoning was that when you increase taxation above some nominal amount, around 25%, the rich will find more ways to avoid these taxes through loopholes, resulting in less overall revenue for collection. If you have a lower percentage of taxes, it would be more cost-effective for them to be paid, than for the effort to get around them, resulting in a higher number of people paying a lower rate of taxes, for a net gain in aggregate revenue collected. By continually raising taxes and providing stimulus through superfluous government programs, we are only printing our way out of debt, resulting in the collapse of the dollar and a complete loss of the standard of living America has enjoyed since the end of world war 2.

  • Greg

    Mellon… Mellon… Mellon… Oops, the record got broken and stuck on a verse. Gary is not going to be happy with you!

  • Gary

    Greg-the money you refer to is the money of the working people that the rich stole by not giving productivity raises. I am simply advocating the taking back of what is rightfully ours.

    The Middle Class is the wealth of any nation. Since the late 1970s, our country has been sucking the Middle Class’s wealth, sip by sip, until it is stripped and struggling – for that small fraction at the top of the pyramid. Costs of education, health care, credit and so forth went up but salaries really have not.

    Unless we change this, we are doomed to crash and crisis. In a world of growing middle classes, we are shrinking ours.

    As for my being a broken record-who keeps talking about the anti- christ and all the Armageddon bunk?

    I like you any ways Greg, your posts are entertaining. You should write a novel (fiction)

  • Greg

    Gary – that was a (mostly) respectful comment and I will at all times in the future be respectful in my disagreement with you. Regarding the fiction part, I am 100% OK with people rejecting the Bible but I would like for people to evaluate the world events from a Biblical perspective in the same way that I evaluate the events of the wicked through my understanding of the mythology of evolution. What I mean is, the mythology of evolution has led to the practice of eugenics and the ongoing drive to eradicate the black population (I am white, by the way), to widely accepted abortion (a part of the eugenics movement), to wacko scientists modifying God’s creation, etc. I don’t fear learning about that preposterous nonsense and would not understand a lot of the wickedness in the world if I did not understand the mythology of evolution.

    Bible-deniers need to do the same thing with the Bible. It won’t hurt you to know what it says about the end times and if you will compare it with the writings of Masonic leaders (our founding Fathers were mostly Masons) and numerous people who have and are influencing the world, you will see a lot of things make more sense. Whether the wicked are trying to make the Bible come true or whether it is true, it explains our world events going on today. It would also be greatly helpful for people to read the plans of the Illuminati and writings such as The Protocols of the Learned Elders of Zion (no, I am not anti-Jew) in which they state “When we come into our kingdom, our orators will expound great problems which have turned humanity upside down in order to bring it, at the end, under our beneficent rule. Who will ever suspect, then, that all these peoples were stage-managed by us according to a political plan which no one has so much as guessed at in the course of many centuries?” Read what Manly P. Hall and Albert Pike had to say about bringing in the Masonic Christ also.

    All of this chaos is planned. My conservative party is not going to save me and your Socialists are not going to save you. Our economic collapse and mass genocide is planned to bring in the New World Order and what I call the Antichrist but others call the true Messiah. Virtually every religion except for Christianity is looking for that false messiah and unfortunately many Christians will also be deceived by the Antichrist when he comes on the world scene. Learn what is going on. If I am nuts, understand that there are many just like me who believe that Jesus Christ is Lord. Understand that most of the wealthy and powerful people in the world do not believe that Jesus Christ is Lord but instead believe that they can prepare the world for their messiah. They are making it happen. There is going to be a whole lot more turmoil before the Antichrist comes on the world scene. If the Masons are correct, the world will be a great place after the billions are killed off before the Masonic Christ comes on the scene. If I am correct, the world is going to become so horrendous shortly after he comes on the scene that Jesus will have to return to prevent the extinction of the human race that is not killed off to prior to his arrival. For you, regardless of which group is correct, we are impacting your life. Political “leaders” are merely puppets that are all following the same directors and they aren’t concerned about saving the middle class. When they are done, there won’t be a middle class.

  • David McElroy

    One very HUGE fact missing from this article is the fact that Congress has looted the Social Security and Medicare funds for many years when there was a surplus, rather than investing it to accrue interest. These programs did not fail, they were robbed!
    The people were sold a bill of goods they were forced to pay for with payroll deductions, to provide for their old age. Now that they are old and the bills are coming due, Uncle Sam claims bankruptcy and implements another program, “Obamacare”, which we will be forced to pay for. Of course, this program will “ration” health care for seniors, as they are “useless eaters” and not profitable wage slaves. And, of course, dead people don’t collect benefits. Who says crime doesn’t pay?

  • Gary

    Hey Greg,

    I did read somewhere in the bible that it is easier for a camel to go through the eye of a needle than a rich man to enter heaven. This simply confirms that most of the rich got that way by stealing our productivity raises. Maybe I should be happy as they (according to the bible) will most likely go to hell when they die and us meek and poor will get(inherit?) heaven. Wasn’t there also something about a rich man in hell and poor lazerous in heaven? I really believe Jesus was a socialist in that he was always blessing the poor and going after the rich. Throw the money changers out of the temple etc. The love of money/root of all evil-the rich must love money as they stole it from the working people, therefore they are evil.

    Greg I think the bible made my case. BTW-I am a christian but I do not believe in rapture/Antichrist but do believe in hell/devil and heaven/God.

  • Greg

    Gary – If the rich can’t get to heaven, God condemned Job, Abraham, David, Solomon and virtually every other Jewish King to hell when he gave them riches. If God cares enough about us to send his son to die for us, surely he would have said “OK, I will give you riches, but you will spend eternity in hell!” Understand the context of the passage and Jesus’ warning about priorities. Did Zacchaeus become a non-rich man after he gave half of his possessions away or did Jesus forget to tell him that he still had too much and was still bound for hell? It is easier for a camel to pass through the eye of a needle than for anyone to make a long-dead corpse come back to life but we know God is going to resurrect us. Regarding old vs. new, God is the same yesterday, today and forever so it is not reasonable to say God use to be OK with money but now we all have to just get by.

    The rapture has been much more of a hindrance for Christians to ponder than it has been any help but that does not mean it isn’t true. Paul alludes to it with enough clarity that I believe it will take place but Jesus makes it abundantly clear in Revelation that many Christians will be beheaded in the tribulation so the logical question is “where did the Christians come from if they were raptured out of here?” Best answer on this one – don’t expect that Jesus is going to rush in and spare us from the chaos. That has not happened in the past and God has used persecution to cleanse the church. The modern church could certainly use some cleansing.

    You have to cut quite a few pages out of the Bible or use a very bad translation in order to deny that there will be an antichrist. I am puzzled how you deny that one. My concern about persons denying that Biblical reality is that they will be ripe to accept him when he comes on the scene.

  • Big K

    Greg is absolutely right.

  • Miguel

    The “eye of the needle” parable wasn’t referring to a literal sewing needle, but was the name of a gate through the wall that surrounded the city of Jerusalem. Jesus didn’t have to make this distinction because he was addressing people very familiar with the area. This particular gate was so small that the only way a loaded camel could pass through, was for the animal to get down on it’s knees. The bible verse draws a parallel between the physical action of the camel and a man on his knees in repentance. For the rich man to get into heaven, he needed to repent because he cared more about his wealth than doing what God had asked him to do. Being rich isn’t evil or wrong; choosing money over God is.

  • Sarge

    Cut spending and remove unfunded mandates. Everyone with a functional brain knows that involuntary redistribution of wealth does not work and never will. Cut government spending down to only Constitutional (according to the original intent of the Founders). Raising my taxes to pay for Unconstitutional entitlements and/or the foolish profligate, spending, ie. millions to study the effect of cocaine on mice, and other, countless absurd grants, will be met with the most vociferous and fervent opposition I can muster. Cutting spending is the only way to solve the dilemma. Entitlements must be removed and let civic and religious charities, as well as families to replace the government role. Families will once again become strong and there will be few or no “free riders” because people won’t tolerate it!

  • Bill

    Gary’s the reason I opened a foreign bank account all those years ago (and I made sure they don’t have any U.S. operations)

    While I am a wage slave, I’ve saved several years worth of income.

    I would certainly qualify as rich under Gary’s terms.

    So, if I think his confiscatory program is coming, at least now I have the option of instantly transferring my savings offshore, beyond the grasping hands of any domestic redistribution schemes.

  • John

    Yes, taxing the producers of wealth, the rich, is working so well for Hugo Chavez, we should import it here. There is no theft of income, there are opposing forces working to determine wages. The business owner wants to pay the least amount for all inputs and the worker wants to get the most they can for their skill based on market demand for those skill. Gary’s neo-marxist rant is tiring and one of the reasons we are in the mess were are in. Marxism is a good idea until you run out of other people’s money. We’re running out.

  • Major

    The best defense is to sent up your own corporation, pay yourself a salary that allows you to access the highest amount of government services (food stamps, subsidized health-care, etc) and have companies you work for pay your corporation (helps them and you). You get the best of corporate welfare and the best of personal welfare. This way you can help bring the system to a close more quickly.

  • Calidreamer

    My favorite gov’t funded study was why men in prison don’t like prison. After a two year study the conclusion: They hate being locked up and having no women. Now that’s money well spent.

  • Matt

    @Major: Just brilliant! A C-corporation pays income taxes of only 15% on profits up to $50k per year. So you could pay yourself a poverty level wage and let the corporation retain the rest as taxable profits. Then when all heck breaks loose and the government falls apart, you can yank that money out of the corporation and there won’t be an IRS around to tax it.

  • Matt

    @Gary: You seem to be living with the misconception that there is a finite “wealth pie” and that for someone to get a big piece of it, someone else must necessarily get a smaller piece. This is an incorrect understanding of how it really works.

    Far from there being a fixed-size pie, wealth pie is constructed and baked by people. In the real world there is no practical limit to the amount of wealth pie that can be created. People earn slices of pie based on how much value they add to the pie baking operation. People with little knowledge and few skills earn less pie than those who contribute in more meaningful ways. Some people, like the self-employed with no employees, bake all the pie they can and get to keep it all (except for what people like you insist on stealing).

    If you are unhappy with your financial situation, perhaps you need to increase your knowledge and skills so you can make a more meaningful contribution to someone else’s pie baking operation – or maybe even start your own. Frankly, I’d prefer you do the latter – then you will learn how infuriating it is to work your butt off and then have someone who works half as many hours whine that it’s somehow “not fair” that you have so much.

  • Georgiaboy61

    John wrote, “Yes, taxing the producers of wealth, the rich, is working so well for Hugo Chavez, we should import it here.” Gary wrote, “The Middle Class is the wealth of any nation. Since the late 1970s, our country has been sucking the Middle Class’s wealth, sip by sip, until it is stripped and struggling – for that small fraction at the top of the pyramid.”

    The USA now has a de facto casino-style economy, one in which the winners (the financial and political elites who hold most of the nation’s wealth) take all. Moreover, they have gamed the system such that their gains are privatized, while their losses are socialized. John, your comments about taxing the rich once applied here, but IMO they do not to the degree they once did. Why? In today’s world, the uber-wealthy can simply move their wealth off-shore. They also possess the resources to exploit loopholes in the tax code the rest of us wage slaves cannot. The USA now has one of the biggest gaps between CEO and worker pay anywhere in the world. Lastly, and most disturbingly, that immense wealth being hoarded by America’s elites confers vast – and unelected – political power, unaccountable to the electorate. In every nation in history, there have been wealthy elites; what characterized the USA as special was the chance for a humble middle-class person to provide a good life for himself and his family. We are drawing dangerously close to a tipping point, when our economy can no longer provide a living for the vast silent majority of people, the betas of the world. What then? It won’t be pretty, I’ll tell you that.

  • Don B.

    Just as a reminder, back in the early sixties, the top personal income tax rate was 91%, and the corporate tax rate was 52%.

    These days, BOTH are around 35%.

    There’s a lot of room for improvement. Tax ‘em!

    Also, if social security is a problem, just let the SS tax rate apply to all earnings…..take off the cap.

    Problem solved……NEXT?

  • Gil

    Are politicians going to let the U.S. go to ruins ust to pay out pensions to the eldery? Why can’t politicans just say “screw it, we are only paying you oldies what we can afford and if means you have to re-enter the workforce, move in with your children and grandchildren or get charity then so be it, we’re not going to rob our productive young people regardless of what the politicians of your day told you”?

  • Gene

    Just thought I’d interject something. In the language that Jesus spoke, Aramaic, the word for camel and rope are the exact same word. With that knowledge the quote would be “rope through the eye of the needle.” Makes a lot more sense.

  • Kreditanstalt

    This current mess is the fault not only of the banks, but of the middle classes and their governments. For decades the population has been supporting unearned standards of living by borrowing, extracting nonexistent housing equity, taking on debt and relying on government handouts.

    The only solution is for living standards to fall to a level commensurate with (low) American – and all G-20 nations’ – productivity. Perhaps something like Mexico? Or Argentina? When that happens, in the years to come, organic job growth, not dependent on artificial cheap money, will begin again. As it stands, there are not enough customers for western goods anywhere on this planet who are willing to pay the high prices needed to support social welfare states.

    Tax the rich? Raise taxes on anyone? Do this and productivity and capital will continue to dribble away, if not outright FLEE. What America needs now is not more overpriced labour,but CAPITAL – and raising taxes will not help.

    Me? Hard to tax, anyway…I’m in GOLD. Bullion, not paper.

  • John

    Gary and others that say tax the rich, I think you have a serious misunderstanding of how bad the problem is. The total value of all household wealth in the US (rich, middle class, and poor) in 2000 was about $44T. If you took all that, there is still not enough to cover the $100T+ in unfunded liabilities.

    Look at it another way, if you take all wealth from all individuals who have a net wealth of about a million or more, you get about $15T. That is take everything from them. Still not even 20% of what is needed.

    So no chance you can tax the wealthy to solve this problem. Massive cuts will be done, probably massive taxes as well. On top of that the dollar is also in trouble and may not be the reserve currency of the world shortly. This makes the problem much much worse. We have had a huge benefit of letting other countries support us for a very long time because of the dollar, but that may come to an end soon.

  • flek

    How about nixing the income tax…that would be direct stimulation.
    Dump the Federal Reserve and go to sound money that isn’t loading the currency with interest debt as it’s printed. Why do we allow a private company to issue our money at interest..that in and of itself is insane.
    How about having a look at the laundry list of taxes and eliminating many of them…like the dubious ‘inheritance tax’…which is just blatant double-taxation. How about people become responsible and get off the government gravy train. How about people realize government isn’t your nanny.
    How about rolling government back to 10% instead of the suffocating 80%.
    We did this to ourselves by not being vigilant while the myriad mafias took over and stole our hard work and retirement from us.
    How about a good Gandhi moment to show how serious we all are.

  • Dennis

    The problem is that our monetary system is corrupt. Go back to a gold/silver standard, eliminate fractional banking, and the economy will turn around. With a metallic money standard, government deficits cease.

  • http://www.cafr1.com American

    This article is false.

    Go to http://www.cafr1.com and see the video. The federal, state, and local governments have been investing in stocks, bonds, real estate, corporations, etc. for years. They have been receiving revenues from these investments for years. That means the goverment does not need tax revenue because it is self-sustaining by its investment portfolio.

    That there is a deficit is a half-truth. As Walter Burien says, if you make $100K a year, have an operating household budget of $20K a year, and overspend by $1K, then in government lingo you would have a “deficit” of $1K.

    However, he continues, that doesn’t matter because you earn $100K a year.
    For example, his home state of New Jersey took in $14 billion in tax revenue. And the total income for that year, thanks to investments, was $87 billion.

  • gleongelpi

    I tell you what happens when government taxes income at high rates==and we are already there.

    People with means quit working. i’ve already know several who have stopped producing. They just sit back and stop doing anything more than they absolutely have to do.

    I have one in-law that has done that. He still has his business, but never makes any money. The IRS audits him all the time, but he does everything by the book. Thus, there is nothing the government can do about it.

    Many years ago a friend of mine had problems with the IRS because his income went down substantially from one year to the next. They could find nothing wrong with his records or reports, but they wouldn’t accept the reasons for his income going down 80%. He, finally went out of business to keep the government from bothering him, and started working as an employee in a corporation for which he was the many owner. Little by little, he wiggled his way around, and nowadays, he does nothing but sit around on his big porch out in the country and tend his garden.

    In my generation’ practically everybody I know has stopped working or reduced their income substantially because they got tired of handing so much of it to the government. Funny thing, right of the top of my head, about half of those over 60 that I know who are still working do so because they have government jobs. Two persons I can think of were forced to retire from government jobs.

    I have called it mostly quits. I play by the rules, but by choice, I make sure I make no more than I absolutely have to. If an opportunity to make lots of money showed up, but I had to work hard, I would pass it up. And so are many others. Many highly skilled persons are simply unwilling to pay the piper.

  • http://1776solution.blogspot.com Republicae

    TAX THE RICH…what an amazing concept! I see that mentioned several times however, since proportionally the top 50% of the income ladder pay over 96% of taxes, what do you think will happen if you tax them more?

    It is also necessary to understand that one thing the “rich” can do that the poor cannot do is expatriate themselves from a massively heavy tax burden. The problem with a welfare state is that eventually the state runs out of people to tax, additionally, the system collapses under the weight of its own political ineptitude and greed. Not to mention the fact that the whole monetary system that we now are subjected to is in a very real danger of ending up in a hyperinflationary event that will make the Great Depression look like a cake walk. This government has “printed” so much money recently that it is completely unavoidable for it to escape the consequences of such monetary inflationary policies.

    Today, it takes almost $22,000.00 to purchase what $1,000.00 did in 1913, imagine that if you will. That is an enormous depreciation in the purchase value of our currency, thanks to the Federal Reserve and the politicians who love fiat money. It will only get worse. The problem is that most Americans are simply walking around unaware of what is about to befall them and our country, otherwise they would most definitely be defending themselves against the most horrendous political scams of the last few centuries. They would, in a word, be up in arms if they really understood just what this government has done to this country!

  • tlpalmer

    Too many people believe that raising taxes will solve all. Since that has never worked in the past, why will it work now?

    The government at all levels just exists to take money from those that produce (owners and workers). Raising taxes is helping an addict by giving him more. Time for the government to go cold turkey.

  • Logan

    @Matt

    Thank you for pointing out the nonsensical finite-wealth fallacy to which so many subscribe. I’ve never understood why so many people think of economic transactions as a zero-sum game. I suppose it’s the same mentality that led people to think that hoarding bullion was the key to wealth back in the days of mercantilism. I think I’m going to go eat some pie.

  • Manny Batler

    The one thing that everybody misses is our foreign aid program. By way of example: About three moneths(just after their war with Israel) Obama gave Gaza $950 million to rebuild. There is no way they can handle that amount. So a lot of it is going for rockets for the Israelis: 8000 rockets into Israel in 6 years.

    Two weeks ago after the aid ship debacle, Obama gave Gaza another $250 million. More funding for the daily rockets into Israel and also to fund terrorists who will get ready for another 9/11.The US is funding the terrorists who intend to attack the US as well as Israel. Why did Obama give Gaza another $250 million right after giving them $950 million ?

  • Matthew

    Yes, tax the producers, the most wealthy, the most innovative, the breadwinners of society. That should make everything better again. Deadbeats should do what they do best: demand more from the rich. We absolutely must redistribute the wealth of society. This is the panacea for all of our problems.

  • Federalist45

    It is next to impossible to believe that there are people in this world who have worked for a living, paid bills, and sought a better life for their children who still espouse a Marxist/Socialist position on economics. Gary could not be more wrong, for all the reasons expressed above. In short, he is ignorant–and I do not mean that disrespectfully–I mean that he is ignorant of reality, ignorant of the facts of economic life. The scary fact is that he, and his ilk, voted for the likes of Barack Obama, Nancy Pelosi, and Harry Reid, and are still lurking in our body politic, about to vote for those same Radical Leftists in 2010 and 2012. There is little, if any, hope for the United States as a nation. What little there is, if there is any, resides in 200 years of Middle Class work ethic and can-do spirit. As long as the various forms of tyranny continue to stomp on this last, best hope for the United States, it has no chance. If this last, best hope can force tyranny off its back, then it may rise up and save what was once a great nation. I hold out little hope that the weight of this tyranny will be lifted.

  • Charlie

    Well I’m and old man that has paid my taxes many years and part of my retirement is from social security. This was a system forced upon me by the government and although I disliked it I had no choice about paying. If I thought it would do any good I would gladly give up half of my earned social security income. It wouldn’t and I’m not stupid enough to even dream that it would. The easiest was to slow down the snowballing debt is to lock up Congress and close the doors. I see the criminals are about to pass another 2000 page plus bill that will cost billions (they really don’t know what it will do according to one of the chief crooks) and not do much to stop the real problems. Can someone tell me why we need 2000 pages of new laws in a year let alone 1 bill? It will be poetic justice for all of us when the s**t hits the fan big time. We voted for it.

  • MOZE

    All of you “Problem solved” crew are sooo f#@%ing ignorant! We have a systemic problem so much greater than what would be solved by taking all of the riches of every wealthy person on earth, closing a few military bases, etc. Our present commitments for entitlements and transfer payments (welfare, etc.) is 9 times our stated national debt of just over $13 trillion, and that is without providing any of the necesary, core functions of government. The total GDP of the WORLD would not fund that obligation and it is growing exponentially – that’s the point of the article. We either cut off the parasites or they will kill the HOST — for those a little challenged, that is all of the rest of US!!!

  • Bob

    A pertinent quote:
    “The problem with socialism is that sooner or later you run out of other people’s money.” –Lady Margaret Thatcher

    And a warning to the soak-the-rich advocates: when tax revenues plummet far enough, the government will decide that YOU are rich.

  • Mykael

    There is NO WAY our massive national debt can EVER be paid back. It is collecting BILLIONS of dollars in INTEREST every single DAY. We will, eventually, be forced to RENOUNCE the debt and, in financial terms, start from scratch again.
    This is the place STATIST politicians, and our own collective foolishness have led us to. It should be obvious to anyone with two brain cells to rub together that maintaining hundreds of foreign military bases, fighting endless interventionist wars and, ESPECIALLY, providing an ever-expanding welfare state . . . is financially unsustainable. Even European countries, which have not assumed the degree of military obligations that we do, have been forced by REALITY to cut back on their welfare state. We can either accept financial pain in the short run . . . . or total financial meltdown and social disaster in the long run. Take your pick.

  • dan

    Democracy is the theory that the common people know what they want, and deserve to get it good and hard.

    HL Mencken

  • http://polymathinvesting.com Tim Singleton

    You tax the rich folks are mathematically challenged. Over and over the calculations show that even if you taxed the rich at 100% and closed what you think of as tax loopholes you would still not have enough to satisfy the gaping maw of those Americans who feel entitled to a piece of the paychecks of those who produce.

    On the one hand you have governments borrowing money in order to avoid taxing the producers with which they buy votes from the poor. This to some degree insulated the producers from seeing what the progressives/leftists were doing. On the other hand you have some 40%+ of the American citizens who think it is their RIGHT to own a home, have access to healthcare, and obtain a superior education.

    Idiots. You have no right to any of these things unless you tear them out of the ground with your own hands by working for a wage and paying for it or coming up with a business and doing the same thing, working for it.

    Cloward-Piven has succeeded. The only way to save the country as it is is to turn off the spigot of benefits that do not require an exchange of labor, stop the government from borrowing more money, and across the board cut benefits and expenses in such a way as to pay off the debt over maybe a 20 year period.

    Trouble is, the American citizenry who could bear up under such a load has been replaced by 20+ to 80+ year old infants who cry and scream when the government teat runs dry. They do not even have the presence of mind to know that they need to secure their own borders or that ILLEGALS have no right to be here.

    Tax the rich? LOL, even the middle class is abandoning the US for opportunity abroad! What do you think the rich are doing?

  • Ragfish

    Cloward-Piven
    Unsustainable entitlements was the means proposed by these two Columbia University professors to create a crisis, which would bring down the system (capitalism) and allow it to be replaced by a Marxist/Communist system.

    Never let a crisis go to waste!

    Social security was billed as a self supporting insurance program. Anyone who has worked, has built up equity in this program. This distinguishes it from Medicaid and other poverty-welfare programs (in theory). In practice money that we’ve paid in goes out to current beneficiaries and is not held in a “lockbox”. The scheme only works with an expanding population base ie more younger workers supporting fewer retirees!

    Adam Smith was right. Economic prosperity requires expanding population. Shrinking workers/producers/consumers leads to economic depression.

    Paul Ehrlich was wrong (Population Bomb!). The world is suffering from diminished children born into societies capable of sustaining civilization!

  • KZ

    This isn’t about raising taxes anymore–it is about cutting out the ridiculously high entitlements to public workers through their unions. These pensions and benefits ARE the main reason for fiscal problems ahead, for both the US Govt and the states. Greedy, corrupt unions and their lobbyists have gone too far, with many $100k + annual pensions for teachers and police who in reality don’t deserve it !!

  • Pkpost

    Gary – you’re an idiot. Even if 100% of the income of the wealthiest Americans was taken away in a flash – it would only barely cover the first $1 Trillion of the current budget.

  • Old Geezer

    KZ

    You’ve got thing mixed to gether. Teachers and Police etc. are covered by the State and Local pension system, and have noting to do with the Federal deficit.

    The cost of Federal Pensions, including military pensions, is very small compared to the rest of the Federal Spending, practically a drop in the bucket. Both Military and over 75% of Civilian Federal employees are covered and pay into Social Security. That’s supposed to cover about 1/3 of thier reitrment. Civilians ahve been paying into a Trust Fund, kind of like the Social Security Fund, especially, since that money has also been borrowed for other things. They are kind of in the same boat as the rest of the US.

  • RPost

    “You’ve got thing mixed to gether. Teachers and Police etc. are covered by the State and Local pension system, and have noting to do with the Federal deficit. ”

    Not at all : The deficit in the pensions, brought on by inadequit funding, poor investment choices, and “borrowing” from the pools has created a tremendous overall lack of money–which will have to be made up by the US Govt and states if they choose to go ahead with this. This becomes a major expense to the taxpayers. Just turn to Calpers, New York, and New Jersey for examples.

  • Alice_S

    I strongly object to the word ENTITLEMENT when applied to Social Security. By law, I must pay into
    Social Security run by the government. Money that could have been applied in the private sector (401K, IRA, etc.) that no one could have “borrowed.” It could have easily been a law, should the government really have my interest at heart, that i do just that. Then no one would be saying that, in my golden years, I am expecting an “entitelment” from the government. Money that I earned is not an entitlement.

  • Joe

    To Gary:

    What will happen if you increase taxes for ONLY the wealthest:

    1.) They will hire the best lawyers to avoid paying taxes at all cost. Or maybe something like Warren Buffet, he has something like $9 billion in carry forward charitable contributions, and will be donating everything to charity upon his death. Government reciepts from him = $0. But how can you hate someone that is giving away his entire net worth to a charity that’s mission is to help the greatest amount of people with the least amount of money. Or as I like to think of it, help the people that really need help, not the lazy.

    2.) Businesses will be hurt, less jobs, markets decline, 401k’s and retirement accounts of middle class get hit hard. To further let you understand, the funds of people in the wealthest 5%, tends to be investment. A lot of it is invested in the country, whether it be for new businesses, exsisting business, fund government debt, etc, but it provides capital that grows GDP, helps the government run, starts and maintains Businesses, creates jobs, keeps markets rising, keeps currency strong, etc. (I could go on and on and on).

    3.) The wealthest become Ex-Patriots, or go live in other countries where they aren’t punished for working hard, innovation, and risk taking.

    4.) The incentive to work hard and strive for excellence goes down, so the attitudes and actions of citizens could ruin the country (I hear a little voice saying “Subprime Debt and MBS’s” in the background)

    5.) The entire foundation for a Democracy is gone.

    Gary, you would love what is called a socialist society. Unfortunately their has never been one that has survived in the history of the world.

  • bq

    You have it right with one exception – social security should not be lumped in with entitlement programs such as welfare. Social security is supposed to be 100% funded by the future recipient whereas welfare recipients might never have paid a penny in taxes. That our greedy and corrupt “leaders” have stolen the money from the social security “fund” has certainly created an enormous financial problem, but anyone who has paid into social security for their working lives (by force I might add, it isn’t as if we have a choice) deserves to receive the paltry retirement benefits. One excellent suggestion I’ve read about – fedgov could sell off the land it owns to refund the social security fund, and perhaps even get solvent again.

  • Hassan Sesay

    My earlier request was if you can enlighten us about some of the costs the US incurred from the wars waged, for instance Vietnam and the consequence of pegging off the dollar from the gold by Richard Nixon.

    We have people in left-of-centre just as well extreme right etc and it is this group of people we must value, I suppose if, all the others must survive because they work their arses out physically for the big ideas bosses in airconditioned offices.
    The US and allies could save the world not with amunition but with respect and understanding. Well, destroy thereby creat a market in re-building isnt it?
    I believe in hard work and so is the rights of the retired to benefit.
    Kind Regards
    Hassan

  • Mary Halsey

    For Greg: You are so right about your politics and your Christian
    beliefs, and stating what the Bible says about the end times in
    Revelation. One man said Jesus was a Socialist. Yes, he fed the poor and anyone else who needed help, but he did it voluntarily,
    as our Christian Saviour,not because some Govt. forced him to do it. We certainly have created an “entitlement society” and we’re
    paying dearly for it.

  • Michael L

    Wow, just wow. I’m glad lazy people like Gary think they’re self-entitled to my hard earned money. They can collect unemployment, I cannot. I don’t pay into Social Security but will get little to nothing out (according to Social Security) and all because I learned a trade and became self-employed (hire help when I need muscle basis but nothing near full-time, I don’t want the added tax and paperwork burden).

    I work a 12 hour day normally (with paperwork thrown in maybe even longer) and regularly hit 16 hour days. I work some hours on the weekend too doing paperwork/billing. Gary believes he should get a larger part of MY hard earned money for doing less. Or thinks he should get paid equally. I’m sorry, move to England, France or Spain. Since their economies are pretty much toast in the very near future good luck. “Socialism works as long as someone else is willing to pay for it.” <– Famous quote, find the source.

    This country was founded on the belief of small government (I'm not a Republican, both parties are equally as useless, both spend beyond their means) and people taking care of THEMSELVES. A government does not have the ability to do ANYTHING efficiently or effectively. It could all be done for cheaper privately. No pensions to fund, no benefits to pay out (that is put onto the company doing the work to do or not do) and to pay a fair market value to its employees for the work done. The government does a horrid job at distributing wealth, a lot of waste, corruption, etc.

    Soon the minimum wage will be lowered so we can finally compete with China (or it will go up as our dollars become worthless and inflation spirals out of control). Heck, we might even start MAKING things again. Sorry but being a customer service country produces nothing.

    I have a motto I live by (btw I'm from Canada, I left a socialist country for a reason and didn't plan on moving to a new one!) that, "if government is the answer, it was a stupid question."

    Don't expect government to solve your problems, if you do, get out of the country you're a drain on society. Thanks, sincerely those that pay your lazy way.

  • Karen

    KZ, I am a retired elementary teacher from MD that gets $791 a month pension after teaching 26 years full time and 6 years (while raising my son) part time in the system. That is hardly the $100K plus that you purport. I got to my classroom at 7:30 each morning and left at 4:30 each evening only to get home, cook supper for family, help our son with his homework, and grade papers and plan for the next day–no time for TV, reading etc. during the school year. In addition, I spent approximately $500 each school year of my own money on classroom materials including, but not exclusivley, notebooks, pencils,gluesticks, colored pencils, etc. for my students whose parents did not send them to school with the needed supplies. And my experience is not atypical.

  • http://facebook.com chris

    Taxing the rich don’t work for many reasons.1. Many rich support the politicians so that they can influence policies.2. How do you expect the rich to tax the rich? 3. Never will happen when the Banks fund presidential campaigns: can we say SPECIAL INTEREST? 4. YOU WILL NEVER SEE ANY OF THIS HAPPEN IN OUR LIFETIME. Dream on, true believers!

  • Dennis Freytes

    You leave out one crutial part of government spending that accounts for about 60% of every dollar spent, thats the military.