income tax
what's even more of a piss off is to know your income tax dollars only go to pay your gov't interest bill from money they have borrowed from banks to wage war/steal from other countries,
Over the last few weeks, the government has touted the fact that they were able to cut $39 billion from the federal budget over the next 5 years in areas that are of very real concern to many Americans, areas that include student loans and Medicaid. Now if the $39 billion were simply “fat” within the budget, everyone would cheer. If the government really wanted to make a dent in the budget, they should examine the Republican’s passion for feeding the rich and hideously inefficient defense contractor’s caviar at every meal.
But what impact does the $39 billion over 5 years (about $8 billion per year) have on the big picture? The government pays an astronomical amount of money just to service the federal debt. Just last year, the government spent $352,350,252,507.90 in interest on a total federal debt of $8.14 trillion. Yes, that’s $352 billion - granted a seemingly small amount when compared to the gargantuan federal budget of $2.7 trillion. Only two programs cost more, Medicare and Social Security. And Congress just authorized pushing the envelope to $9 trillion.
According to the Seattle Post-Intelligencer, To help fund that $352 billion I.O.U., the government will again sell 30-year bonds. By any measure, the interest on the debt is headed in the wrong direction. The Congressional Budget Office (CBO) released "The Budget and Economic Outlook: Fiscal Years 2007 to 2016." That report predicts that interest payments on Treasury Debt Securities, or gross interest, will increase from $352 billion to $662 billion during that period.
And where does this money go? Where do we send the check for our national interest payments?
"When the federal government runs a deficit, the Treasury borrows money from the public by selling securities in the capital markets," the CBO says. "That debt is purchased by various buyers, including foreign investors, mutual funds, state and local governments, commercial banks, insurance companies and individuals. Of those groups, foreign investors (governments, businesses and individuals) currently own 45 percent of all federal debt issued to the public -- or nearly $2.1 trillion of the roughly $4.6 trillion that is now outstanding."
The CBO says Japan, China and the United Kingdom have the biggest holdings of U.S. debt instruments. And, it's worth noting, that the United Kingdom is more of a broker than a purchaser. In all, the CBO says, "investors from other countries purchased about $235 billion in Treasury securities last year."
We Americans are stingy when it comes to foreign aid. We don't invest a lot (in relative terms) to help poor nations climb out of poverty. The total spending on foreign aid is less than $20 billion (depending on how you count). Yet without debate, without fanfare, we willingly send $235 billion as a transfer payment -- to Japan, China and other cash-rich nations, businesses and individuals.
The only way out of the looming disaster we're in is to be able to clear up the picture. We cannot do that without a wholesale reform of government accounting and by drastically cutting government services and spending. Has anyone heard of Sarbanes-Oxley regulations applied to private businesses? Apply it to the government. How about forcing political candidates to sign their political campaign promises. Any violation – no matter how minor – is punishable by death by stoning.
what's even more of a piss off is to know your income tax dollars only go to pay your gov't interest bill from money they have borrowed from banks to wage war/steal from other countries,
Over the last few weeks, the government has touted the fact that they were able to cut $39 billion from the federal budget over the next 5 years in areas that are of very real concern to many Americans, areas that include student loans and Medicaid. Now if the $39 billion were simply “fat” within the budget, everyone would cheer. If the government really wanted to make a dent in the budget, they should examine the Republican’s passion for feeding the rich and hideously inefficient defense contractor’s caviar at every meal.
But what impact does the $39 billion over 5 years (about $8 billion per year) have on the big picture? The government pays an astronomical amount of money just to service the federal debt. Just last year, the government spent $352,350,252,507.90 in interest on a total federal debt of $8.14 trillion. Yes, that’s $352 billion - granted a seemingly small amount when compared to the gargantuan federal budget of $2.7 trillion. Only two programs cost more, Medicare and Social Security. And Congress just authorized pushing the envelope to $9 trillion.
According to the Seattle Post-Intelligencer, To help fund that $352 billion I.O.U., the government will again sell 30-year bonds. By any measure, the interest on the debt is headed in the wrong direction. The Congressional Budget Office (CBO) released "The Budget and Economic Outlook: Fiscal Years 2007 to 2016." That report predicts that interest payments on Treasury Debt Securities, or gross interest, will increase from $352 billion to $662 billion during that period.
And where does this money go? Where do we send the check for our national interest payments?
"When the federal government runs a deficit, the Treasury borrows money from the public by selling securities in the capital markets," the CBO says. "That debt is purchased by various buyers, including foreign investors, mutual funds, state and local governments, commercial banks, insurance companies and individuals. Of those groups, foreign investors (governments, businesses and individuals) currently own 45 percent of all federal debt issued to the public -- or nearly $2.1 trillion of the roughly $4.6 trillion that is now outstanding."
The CBO says Japan, China and the United Kingdom have the biggest holdings of U.S. debt instruments. And, it's worth noting, that the United Kingdom is more of a broker than a purchaser. In all, the CBO says, "investors from other countries purchased about $235 billion in Treasury securities last year."
We Americans are stingy when it comes to foreign aid. We don't invest a lot (in relative terms) to help poor nations climb out of poverty. The total spending on foreign aid is less than $20 billion (depending on how you count). Yet without debate, without fanfare, we willingly send $235 billion as a transfer payment -- to Japan, China and other cash-rich nations, businesses and individuals.
The only way out of the looming disaster we're in is to be able to clear up the picture. We cannot do that without a wholesale reform of government accounting and by drastically cutting government services and spending. Has anyone heard of Sarbanes-Oxley regulations applied to private businesses? Apply it to the government. How about forcing political candidates to sign their political campaign promises. Any violation – no matter how minor – is punishable by death by stoning.
