30 APR 2011, Saturday

• At top, the single best graphic that I've seen portraying the US Federal Budget problem (FY 2010).  It makes the problem soooo easy to visualize.  Immediately beneath that, the breakdown of federal taxes by source.  A lot of people have no idea how much they pay in payroll taxes compared to income taxes.  Politicians love this...as long as you don't understand your taxes, they are safe!  And, THAT, my friends is why they'll never simplify the tax code.
• Basically at current tax levels, we're able to cover Social Security, Other, Medicare, Medicaid and Interest on our debt.  But we can't cover anything else....at all!  Think about that.  That is absolutely insane.  
• Some will argue that we are taxed too little.  Well, it looks to me that you'd need to raise all taxes (not just income taxes) by about 50% to balance the budget. 
• I tend toward the "we spend too much" and it looks to me that you'd need to cut ALL (Social Security, Medicaid, etc included) spending by 33% to balance the budget.
• Your choice!  OUCH!!!
• Either way we are in a very tough spot...we are borrowing every dollar it takes to operate the Federal Government on a day to day basis because each and every tax dollar going into DC goes right back out to support Mandatory Programs.
• Folks, it is what it is.  I am merely making an observation of fact.  Now, I'm sure that some are getting highly emotional right now.  I choose not to.  Instead, I will pray for leadership that will deliver a balanced budget each and every year...that's all it takes.  Enforcement mechanism?  CONgress and President would have their retirement payout delayed by three years for every 1 year of no balanced budget.  Betcha they'd be some motivated Mofo's then! 
• The longer we wait the tougher it will get since the interest expense will increase as we move away from these historically low interest rate times.
• PS...JUST A REMINDER...this does NOT reflect the Obamacare spending increases that will suddenly show up in 2014...which would require even higher taxes or even larger spending cuts to pay for.  Hallelujah....Thank you Nancy Pelosi and Harry Reid for shoving this up our...constituency. 
• So, next time you here President Obama call for sacrifice in the face of this budgetary mess just ask yourself this question aloud, "Why does he intend to go ahead with a ton of new spending when we can't afford our current programs?  Why isn't he willing to sacrifice his 'legacy' as the nationalized healthcare President?"  Oh that's right, when he says sacrifice that's just code for you pay more taxes.
• Below, long term outlook from OMB (Office of Management and Budget).  Do you think this will get easier by delaying necessary action?  Or that it will magically correct itself?  If so, you must also believe in unicorns that crap Skittles (taste the rainbow).  I do not.  
• This is not an issue of political ideology.  It is just simple math. 
• To those politicos that claim to bring bold new initiatives and "change", they had better get on it!
• "Don't ever let a crisis go to waste"???  Well, here it is.
• Interesting test...Are you a Conservative, Liberal or Libertarian?

• Here....some interactive graphs showing difference between Obama's plans and GOP's plans for budget / debt.