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Posts Tagged ‘Deficit’

IRS: Taxing ALL Rich People Not Enough to Pay U.S. Deficit

Posted by FactReal on August 11, 2011

A recent IRS report proved that if government confiscated the entire annual earnings from the so-called rich, it would not provide enough money to pay the annual budget deficit:
● People with annual incomes over $1 million earned a total of $727 billion in 2009.
● People with incomes of $10 million per year or more earned a total of $240 billion in 2009.

The $727 billion from those millionaires would not be enough to cover the 2011 U.S. budget deficit which is estimated to reach $1.5 Trillion. It would not have been enough to cover any of Obama’s deficits which ran up to $1.3 Trillion in 2010 and $1.4 Trillion in 2009.

Here is the 2009 income data according to the IRS:

The Charleston Daily Mail explained there are not enough “rich” people to cover the deficit:
Soak the rich, eh?

They do not have the money.

A report from the Internal Revenue Service found that the rich — 8,274 people with incomes of $10 million per year or more — earned a total of $240 billion in 2009.

Even of you confiscated every dime they earned, you would barely have enough money to cover government spending for 24 days.

Of course, about a quarter of that money already goes to the federal government for federal income. So make that 18 days.

Another 227,000 people earned $1 million or more in 2009.

Millionaires averaged taxes of 24.4% of their income — up from 23.1% in 2008.

They, too, did not earn enough money to come anywhere close to covering the annual deficits that are $1.5 trillion a year.

Barack Obama was the first president to sign a budget with a $1 trillion deficit into law.


We must cut. We cannot afford to buy everything we want.

– IRS report, http://www.irs.gov/pub/irs-soi/09inalcr.pdf

Posted in Economy/ Finance | Tagged: , , , , , , , | 2 Comments »

Obama’s Economic Record (Video)

Posted by FactReal on July 5, 2011


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GOVERNMENT SHUTDOWN: What Shuts Down? Who’s to Blame?

Posted by FactReal on April 7, 2011


Social Security checks would still go out. Troops would remain at their posts. And virtually every essential government agency would remain open. That’s the little-known truth about a government shutdown. The government doesn’t shut down. (April 5, 2011)
So it remains that the parties stand at an impasse, leaving the government teetering on the brink of a partial shutdown. But despite President Obama’s apocalyptic warnings, a shutdown is not the catastrophe he paints it to be. Even if Congress and the president fail to reach agreement, Social Security checks are still mailed, and essential services continue, including military, law enforcement, VA care, and others.

During the 1995 shutdown, approximately 800,000 federal workers were initially furloughed. Given the growth of the federal workforce since then, today that number would likely be higher. Still, that leaves most of the federal workforce and military still working. In fact, the Department of Defense, power grid maintenance, border patrol, Coast Guard, air traffic controllers, inpatient and emergency outpatient medical care, and other vital services continued. But, in anticipation of a partial shutdown, Congress should immediately pass a Department of Defense appropriations bill to ensure that our military is fully funded in any scenario. Speaker Boehner is pushing for just that…

Last year, when Democrats were majority in the U.S. Senate and the House, they failed to pass a budget.
Government shut-down blame game – some facts:
Obviously the first and most important point to be made about the possibility of the government shutting down this week is the fact that had Democrats, who held a majority in both the House and Senate last year, done their basic job of passing a budget, this wouldn’t be an impending problem.

Now, unsurprisingly, it has devolved into a political battle pitting the Republicans on the side of cutting spending as their constituency insists upon (and voted for) against Democrats who, failing to do their job last year, now are dragging their feet in the Senate (the House passed a continuing resolution to fund government 46 days ago) and making veto threats from the White House.

Funny, how politics works, isn’t it?  Those who didn’t do their job [the Democrats] last year or provide any leadership on the subject are now actively working against passage of a stop-gap funding measure and prepared to blame those who are attempting to fix the problem for any government shutdown which might occur.

Remarkably, a partial shutdown is a reality simply because the Democratic leadership is drawing a line in the sand over a few billions of dollars in cuts, what Fox News’ Megyn Kelly accurately described as “teaspoons in the ocean.” The United States is $14.3 trillion in debt, and according to a CBO report, the federal government ran a budget deficit of $223 billion in February. Meanwhile, the Senate sits on its hands over cuts that amount to a few days of deficit spending. Heritage’s J.D. Foster explains:

With all the focus on legislative tactics, it is easy to lose sight of the fact that the battle is between the modest spending cuts passed by the House and Senator Reid’s shamefully puny cuts. The issue is not whether the course of government will change dramatically. It won’t. President Obama and congressional Democrats already drove spending rapidly higher. Even under the House bill, spending would continue to grow substantially. This battle is only the first of many.

[…] The fact remains that the [Republican-led] House passed a budget, the [Democrat-led] Senate has not, and Democratic leadership is posturing for political gain. Nero fiddled while Rome burned.

Perhaps if President Obama were more willing to lead in 2010, when his party first abdicated its responsibility to pass a budget, Congress and the American people would not be where we are today – staring a partial government shutdown straight in the eye, all while trillions of dollars in debt await future generations. Majority Leader Reid and President Obama now must put politics aside, agree to modestly cut spending…

The big picture: United States is $14.3 trillion in debt. The federal government ran a budget deficit of $223 billion in the month of February alone!
So, what are Congress and President Obama doing about it?  The House of Representatives [where Republican are  majority] took the first step to get deficit spending under control by passing a Continuing Resolution to fund the government for the rest of the year for $61 billion less than 2010…this cut was equal to about one week’s worth of deficit spending in the month of February

The Senate [where Democrats are majority] is now about to try to pass a bill to fund the government for the rest of the year…Senate Majority Leader Harry Reid (D-NV) proposes to cut spending a total of $4.7 billion…That’s about equal to one-half of one day’s deficit spending in February

[T]he fact remains the House acted; the Senate failed.  The House passed cuts equal to the deficit for a week in February. Senator Reid proposes a mere half-day’s worth. The blame for a shutdown would lie plainly at the feet of Senator Reid, who as Majority Leader failed to move a bill, and at the feet of President Obama, who following the precedent of his recent budget submission once again simply failed to lead.

Posted in Economy/ Finance, Obama | Tagged: , , , , , , , | 1 Comment »

DEFICIT Caused by Medicare and Social Security; Not the Wars (Charts)

Posted by FactReal on April 1, 2011

58% of the budget goes to entitlements; 20% to defense spending.
Did you know that 58% of the 2010 budget went to entitlements (Social Security, Medicare, Medicaid, Unemployment) while only 20% was spent to defend this nation? (See graph 1) Defense spending is actually less than 5% of GDP; entitlement spending is almost 10% and rapidly increasing. (See graph 2)

Democrats and some Libertarians are incessantly trying to perpetuate the myth that defense spending (i.e., Iraq and Afghanistan wars) is the principal cause for the U.S. deficit. When talking about the budget, their first impulse is to cut the money we spend to defend this nation. But they are disregarding the facts:

EXPENSES VS. REVENUES (Fiscal Year 2010)
Entitlements are killing us; not defense. The U.S. spends more than what it receives: It spends $3.5 Trillion while it only receives $2.2 Trillion in revenues. Most of the expenses go to entitlement programs, not defense spending.
Graph 1:

Entitlements are killing us; not defense.

Pie on the left:REVENUES = $2.2 Trillion:
● Individual Income Tax = $899 Billions (41%)
● Social Insurance Tax = $865 Billions (40%)
● Other = $208 Billions (10%)
● Corporate Income Tax = $191 Billions (9%)
Pie on the right:EXPENSES = $3.5 Trillion:
Entitlements are the major expenses:
● Social Security = $707 Billion (20% of the nation’s total expenses)
● Medicare + Medicaid = $724 Billions (22%)
● Unemployment Insurance & Other = $553 Billion (16%)
Other expenses:
● Defense = $694 Billion (20%)
● Non-Defense Discretionary = $431 Billion (12%)
● Net interest payment = $196 Billion (6%)
● Discretionary One-Time Items = $152 Billion (4%)
Defense spending has declined. Entitlement spending has increased:
“Spending on national defense, a core constitutional function, has declined significantly over time, despite wars in Iraq and Afghanistan. Meanwhile, spending on the three major entitlements—Social Security, Medicare, and Medicaid—has more than tripled and is rapidly crowding out other programs.”

Graph 2:


Source: White House Office of Management and Budget.

They said that Medicare would cost $500 million a year.
But now Medicare’s unfunded liability is $89.3 Trillion!

Since the Great Depression, the U.S. has created various entitlement programs to provide a safety net for the poor.

But there are several problems:
1- These programs are not properly funded.
2- Millions of Americans have come to rely on them as primary source of income and benefits.
3- The U.S. cannot afford the Medicare and Social Security benefits that have been promised to future retirees.

Medicare, the government program that provides health insurance to the vast majority of America’s senior and disabled citizens, is collapsing under its own financial weight. Instead of being the health care panacea, Medicare has become our venom that is killing us softly but surely if we continue down this unsustainable path.

In 1965, liberals like Democrat President Lyndon B. Johnson and the New York Times lied promised to Americans that Medicare’s costs would be $500 million per year (approx. $3.5 billion in 2011 dollars.) They insisted that: “Federal appropriations of about $500 million a year from general tax revenues would be required” to pay for Medicare.

But according to 2009 calculations, Medicare has an unfunded liability of $89.3 TRILLION — that is, $89,300,000,000,000! “The unfunded liability is the difference between the benefits that have been promised to current and future retirees and what will be collected in dedicated taxes and Medicare premiums.” This means that government would have to set aside $89.3 trillion today to be able to pay future benefits for the three generations of Americans: retirees, workers, and children. This represents today a debt burden of $289,235 for every man, woman and child in the U.S. for Medicare alone. (According to the 2010 Census, the U.S. population consists of 308,745,538 people.)1

Social Security and Medicare are in trouble precisely because every dollar of payroll taxes is spent: “Nothing is saved, and nothing is invested. The payroll taxes contributed by today’s workers pay the benefits of today’s retirees.” And what about the Social Security and Medicare Trust Funds? They are “are little more than IOUs the government writes to itself.”

Conclusion: “The Social Security and Medicare deficits are on a course to engulf the entire federal budget. If our policymakers wait to address these growing debts until they are out of control, the solutions will be drastic and painful.”

But then we have the left-wing media claiming that we are not broke. Why? Because they want to leave us with only one option: Tax increases.

1 Source: http://2010.census.gov/2010census/data/apportionment-pop-text.php

Posted in Government Waste, Left, War & National Security | Tagged: , , , , , , , , , , | Leave a Comment »

DEMOCRATS VS. REPUBLICANS: Who is better for the Economy?

Posted by FactReal on December 10, 2010

American Thinker published a succinct research with the economic legacy of a Democrat Congress vs. a Republican Congress.
These economic data once again prove the negative consequences of liberal policies.

The U.S. House of Representatives and the U.S. Senate were controlled by:
– Democrats from 2007 thru 2010
– Republicans from 2003 thru 2006

Here is the summary table and links to the primary sources:

Jobs by Year – Average -1,583,000 1,672,000 Employment – NonFarm (in 1000s)
Jobs by Month – Average -131,916 139,333
Unemployment Rate – Average 7.48% 5.30% Unemployment Rate
Budget Deficits – Average $1.143 Trillion $285 Billion Deficit
Dow (DJIA) 0.13%
(0.53 Total)
11.04% Dow Jones Ind. Avg.
S & P 500 1.29% 15.02% S&P 500
FDIC Bank Closures – Average 79.2 1.75 Bank Failures

Calculations and explanations: here.

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JOE GARCIA LOVES BAILOUTS: Is this Democrat Good for Your Wallet? (video) [FL-25]

Posted by FactReal on October 13, 2010

Democrat Joe Garcia, candidate for Florida’s Congressional District 25, will continue with the same failed policies of Obama and Pelosi.
OBAMA’S ECONOMY: Poverty Increased under the Democrat Congress & President Obama (graphs)
OBAMA ADMITS There’s No Such Thing as a Shovel Ready Job
OBAMA’S FINANCIAL REFORM & How Democrats Caused Financial Crisis
GOV’T WASTE: How the Stimulus Failed to Create Jobs & Wasted Your Money
GOV’T WASTE: Social Security Employees use $700,000+ Taxpayer Money to go to high-end Resort
GOV’T WASTE: $2.5 Million in 30-Seconds…Spent by the Census Bureau
GOV’T WASTE: $11 Trillion in Bailouts
GOV’T WASTE: $259 million stimulus created only 209 full-time jobs in Miami
GOV’T WASTE: Miami leaders get $800 Monthly Car Allowance paid by Taxpayers (Images & costs)
DEBT LIMIT INCREASE – What does it mean?
– – > RAP SHEET: Democrat Barney Frank
– – > RAP SHEET: Democrat Maxine Waters
– – > RAP SHEET: Tim Geithner
AIG & OBAMA: Laundering Our Money
DEMOCRATS & “FAT CAT” LOBBYISTS spent weekend together in Miami Beach
OBAMA’S OUT OF TOUCH: Economy vs. Michelle Obama’s Vacation (images)
OBAMA-ANTOINETTE: Obama Indulges Himself but Excoriates Others
BAILOUT SUMMARY (2009 bailout list)
CAR BAILOUT: Obama will not tell you why the U.S. Automakers Failed
Lobbyists are major contributors to his congressional campaign (Link to public records)
Proof: Fake Tea Party candidate, Roly Arrojo, is a Democrat who is linked to Joe Garcia
Joe Garcia & Pelosi raised campaign funds at house of corrupt Miami politician (Photos: Tea Party surprises them)
He is accepting donations from people working to benefit Fidel Castro (Links to donation records)
(Cuba on the list State Sponsors of Terrorism: http://www.ch.doe.gov/offices/OCI/TerroristCountries/)
His donor linked to Fidel Castro (Links to donation records of John Cabanas)
His donor corruptucrat and radical Charlie Rangel
His friend from the leftist Cuban American Natl. Foundation is behind attack ads against GOP David Rivera
His corrupt friend Raul Martinez who physically abused a protester (Video)

Posted in Economy/ Finance, Elections, USA-Florida | Tagged: , , , , , , , , , , | 2 Comments »