A New Era of Irresponsibility: FY 2010-2019 Budget

Cross posted and Politics and Critical Thinking.

Here is the sorted tale of "A New Era of Irresponsibility." Enjoy your future, it's gonna cost.



Deficit:



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Mandatory Spending:



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Taxes:



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Discretionary Spending:



Discretionary Spending Continued:



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Summarizing the information, we have a national debt projected to climb to $6,969,000,000,000 over 10 years, in addition to the $10,840,000,000,000 of existing debt. Just a sidebar, this is a topic I very rarely hear the administration or Congress speak about.

Social Security spending rising from $662 billion in 2009 to $1.14 trillion by 2019. Medicaid spending is getting somewhat under control, rising from $209 billion in 2009 to $468 billion by 2019, total spending $3.5 trillion. However, this article from the Centers for Medicaid and Medicare Services tells a little different story. Medicare spending rises from $425 billion in 2009 to $872 billion in 2019, total spending is $6.4 trillion.

Income taxes rise from $958 billion in 2009 to $2.15 trillion in 2019. Social Security payroll taxation rises from $662 billion in 2009 to $1.05 trillion in 2019. Medicaid payroll taxation rises from $191 billion in 2009 to $308 billion in 2019.

The numbers paint quite a different visage than the President is presenting.

The President is touting his claim that the yearly deficit will be halved by 2013. Unrealistic or not, what is being glossed over is that by 2019 we will reach yearly spending deficits close to $1 trillion dollars. This is wagering that the stimulus does exactly what they predict it will and no more spending is required.

However, as you have seen, spending does not take a sharp downturn, as expected. In fact, it increase dramatically in most areas, fueled by increasing the tax burdens. The wealthiest of American will only be able to bear this brunt for so long. Eventually, in the not so distant future, taxes will have to be levied against the lower income brackets to support these vast government expenditures. The numbers are showing a trend of doubling over ten years in income payroll tax alone.

To understand this problem and how pandemic this budget is, the most important factor is the amount of debt the country will be carrying. If these estimates are accurate by 2019 we will have expanded, not cut, the overall debt of the United States to about $18 trillion dollars, not counting interest.

While engaging in this sort of deficit spending and debt acquisition, you have one of three options as we saw by using California for our model; raise taxes, cut spending, and sell off debt. Raising taxes is inevitable, there are too few spending cuts to make a difference, and Hillary Clinton has been attempting to woo the Chinese into buying more American debt.

As the debt grows in percentage of GDP it will soon overtake the output of the country, it is quickly reaching unsustainability. Sobering isn't it?

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