Here we go again. From the same man who said President Bush’s $400B deficits were “immoral” comes a sixth budget with deficits above $400B. In his 2016 budget proposal, our President plans to spend $3.999T on receipts of$3.525T. Over the next 10 years, the President’s own budget calls for increasing our national debt by $5.6T, which would put our total national debt well over $22T by 2025. But don’t kid yourself, a rise in interest rates or another melt down somewhere in the world and our budget will become moot as we spend and spend.
We will spend $283B on interest in 2016 – assuming the interest rates don’t rise. Social Security, Medicare, Medicaid and other mandatory programs will cost $2.548 Trillion dollars. Defense will cost $631B. Defense, Social Security, Medicare and Medicaid comprise 62.4% of all Federal outlays. On the income side, individual income taxes will account for $1.6T and corporate taxes will feed the Treasury another $433B. Social Security payroll taxes will bring in $797B even though the program plans to spend $938B. Medicare taxes will bring in $244B while the President is proposing we spend $585B in this program.
We are now well over $18T in debt on an annual GDP of $18T. We have unfunded, mandated spending coming down the pike of over $60Trillion dollars. Somehow, we’re supposed to take care of all this on $3.5 – $4.0T of income each year.
We believe the deficits need to be eliminated. We need to develop an ethos in this country of not living on debt. We need to fundamentally change our culture. We need to see debt as a means to temporary ends, not the way we permanently live our lives. We need people in both parties to see debt as a necessary evil – but evil nevertheless. Debt should not be considered a tool for growth for government entities. It should be used only when emergencies arise – and nothing in our current spending matrix constitutes and “emergency”.
I’m seriously tired of this !Q@$. It’s time for a fundamental change and I don’t care which party gets the credit.
Bill English, Founder
Bible and Business