I don’t have much time to post today, but I would just like to note that based on the graphic on the front cover of The Washington Post, the Federal taxes we pay in 2010 will only pay for $200B worth of discretionary spending out of over $1.4 trillion. In other words, 90% of the taxes we pay ($2.4 trillion worth) are for mandatory entitlement spending and interest on our debt. We’re almost reaching the point where all of our discretionary spending (military, education, housing assistance, transportation, etc.) will be deficit financed.
This is similar to a household that earns money to pay the mortgage, car payment, insurance, and other fixed bills, then uses the credit card to pay for food, gas, groceries, and everything else. I think we’re nearing a point where I would consider our government bankrupt. Something has got to give. Probably a lot of things together.
On another note, the taxes collected from payroll that are supposed to pay for Social Security and Medicare are about $200 billion dollars short of covering those programs, out of about $1.1 trillion in costs. So we’re borrowing from our grandchildren to pay our grandparents.
That’s all the time I have.