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Does Washington Have a Spending Problem or a Revenue Problem?
Depending on your opinion, what programs would you be prepared to cut, or what percentage of your income would you be prepared to give in taxes, to fix the problem?
As "fiscal cliff" negotiations heat up, congress can’t agree on whether Washington has a spending problem or a revenue problem. Nor can the American people or, in many instances, even economist
In an article on Marketplace.org, headed up “Washington has a spending problem not a revenue problem,” the argument is made that you can’t keep spending and just raising taxes to meet the outflow of money. The best way to fix the country’s deficit problem is to gut spending.
In a story in the Daily Kos, Joan McCarter looks at it from the other side in an article titled, “We have a revenue problem, not a spending problem.”
In the story, McCarter shows the loss in revenue as a result of the Bush tax cuts and the economic downturn in the economy between 2001 and 2011.
Our question is, if you believe that it is a spending problem and not a revenue problem, what programs would you be prepared to cut to fix the problem? On the other hand, if you believe it is a revenue problem and not a spending problem, what percentage of your income do you think it is fair for the government to take in taxes to fix the problem?
North Georgia Weather
9:50 am on Tuesday, December 11, 2012
Spending is way up. Any moron ought to be able to see what's going on. Whenever outflow exceeds inflow... you have a spending problem. You can say it's revenue but you could always say it's revenue when you don't have enough to pay your expenses. That's like me complaining I'm not making enough money but I continue to increase my spending at the same time. Kinda stupid isn't it? You would think I would then cut out all of the frivolous crap but no, I spend more, always with some justification. It's like sticking your head in the sand and totally ignoring the root of the problem.
I just don't get it.
ED CARR
10:21 am on Tuesday, December 11, 2012
SPENDING....SPENDING...SPENDING. Oh, did I mention SPENDING.
Michael k
11:29 am on Tuesday, December 11, 2012
Two replies that there is a spending problem, but no suggestions as to what sort of spending cuts should take place in order to deal with the problem.
It is too simplistic to say it is a spending problem, or a revenue problem. There are spending problems but looking to correct any particular spending problem will result in (unintended) consequences.
For example, let's say we spend too much on the military.
http://www.pgpf.org/Chart-Archive/0053_defense-comparison.aspx
We spend more than the next 10+ countries combined. We should reduce military spending by X%. The consequences of this could be:
Unemployment in the defense and related industries would spike. Benefits for veterans might be slashed. Overseas bases might close. Local economies that are positively impacted by the location of these bases in the US and overseas would be devastated. Our ability to provide military support for allies would be significantly reduced. Our enemies would be emboldened. Our senior generals would not have nearly the same amount of swag with the groupies.
We have a spending problem, but how do we fix it?
R++ - One of the famous "Dacula Crew"
11:24 pm on Tuesday, December 11, 2012
Oh I don't know, how about an across the board 5 to 10 percent.
And when we are told that it's NOT possible, the sky will FALL and the planets in our solar system will be forevermore out of alignment...
Then try cutting ALL grants including those to states, cities, counties and staduim projects by 20 percent. For example ,we could live WITHOUT roadside/intersection flowers for a season or 2 right?
Then try enforcing our current laws so we actually take care of our working, tax paying class...
Does anyone have any idea how much revenue our governments have LOST by not enforcing our borders and leaving workers and families unprotected?
Attention greedy politicians: If we can't make it, YOU can't tax or TAKE it. No matter how high you raise the rates, in the end you get a greater part of a SMALLER pie which is STILL less than a little sample of a MUCH greater pie.
So what do you make of the thousands or MILLIONS of families whose earning potential was stunted for YEARS because of a premature death, caused by those who weren't even supposed to be here? Then you have the lucky ones who survive the encounter, they make marked less due to long term injury or become OUTRIGHT disabled and HELLO MEDICAID.
Then there's always the LOCAL CIDs stop taking FED/State grants until this crisis is averted...
Take Away?
Gore all ox's EQUALLY without regard to race, creed or sexual orientation.
GregRodgers
11:18 am on Tuesday, December 11, 2012
Washington has a spending problem....spending on wars that we should not have ever gotten into in the first place.
And now the solution to the problem: Take away our mortgage deduction to pay for it.
Thank you George Bush..
Pittsburgh Paul
12:11 pm on Tuesday, December 11, 2012
Gee, George Bush will go down in history as the most powerful president since the founding of this country. No other president has been credited with so much power and influence to set into place the UNCHANGABLE course of our country than Bush. If all the Dems are correct, Obama will go down in history as the most weak president since he has been unable to LEAD this country in the change he promised - because as you so appropriately point out Greg, Obama doesn't have the ability to manage consequences and provide vision and direction and the leadership for moving forward.
The good news is that I have fully embraced the Democratic Party now and will forever be a loyal Dem. Just this morning during our weekly staff meeting, I blamed all our financial issues on my predecessor (even though I've been the director for four years now) and blamed any lack of success in our strategic plan on my staff (since they can't seem to get along and get the job done.) I've also reassigned responsibilities so that the more capable are doing more work and the less capable are being excused from work - but to be FAIR, I have decided to pay everyone the exact same salary. As you might imagine, there's been some issues, but I'm off for a three-week vacation in Hawaii because I'm the boss. Yes, I encourage all my former Republican friends to reconsider party affiliation - life is actually pretty good on the other side!!
Karsten Torch
8:44 am on Wednesday, December 12, 2012
Okay, Pittsburgh...that might just be the most beautiful thing I've read in a long time....
Stormin
3:21 pm on Monday, January 7, 2013
Obama could have ended all of it four years ago. However, he didn't end it, he expanded it. It's to late to blame bush any more.
Obama owns it now GregRodgers. Your great hope and change is just as much a war criminal as bush. Tastes like a sh*t taco doesn't it?
Morris Devereaux
2:02 pm on Tuesday, December 11, 2012
The simple answer of course, is spending. Washington has NEVER applied new revenue to the deficit; they've always just spent it. There's no amount of money that they could get that would not be used to spend on new programs.
But, having said that, Michael K is correct in that it's very easy to say cut spending. It's much more difficult to decide what to cut. For example, we know entitlements are a huge portion of government spending, but who among us, would be willing to accept huge cuts in Social Security or Medicare?
In addition, any sort of cuts will be accompanied by massive unemployment in that industry which could even possibly bring us back into a recession or even depression. So my solution would require a long, as much as 10 years, commitment by the government to slowly reduce spending by at least 50% in order to get a budget we could live with and to have enough extra to pay off the debt. Certainly defense would have to be a major area where cuts would be made. We spend four times what the next highest spending country (Red China) spends on defense. We simply cannot continue to be the world's policeman and protector. The world needs to start spending their own money and protecting themselves.
Good Grief Y'all
6:08 pm on Tuesday, December 11, 2012
Exactly, Michael k and Morris. Balanced plan - both spending cuts, gradually, and increased revenues. The Middle Class will be hit too hard by taking away the mortgage deduction, so if that's done it should be on the higher end properties. Churches and charities will be hurt by taking away those deductions.
Michael Robinson
8:37 pm on Tuesday, December 11, 2012
Spending is stimulative. Cut the spending, and revenue goes down. We have recent examples of austerity failing miserably to demonstrate why it's a bad idea.
R++ - One of the famous "Dacula Crew"
11:28 pm on Tuesday, December 11, 2012
PROBLEM!!! You CAN'T spend what you DON'T have...
But if you're so inclined to buy me a hamburger today, I'll gladly pay you Tuesday...
Karsten Torch
8:46 am on Wednesday, December 12, 2012
Spending is NOT stimulative. Japan tried that crap for 10 years, and it didn't help. The government creates nothing. If the government spending stops, other spending will take its place. And it will be far more effective.
Government spending is just taking the money in with the left hand and doling it out with the right. After, of course, skimming a large percentage of it off the top.
Tammy Osier
9:05 pm on Tuesday, December 11, 2012
I read an article about the UK. They tried what we are doing and it failed just as republicans and true economists have tried to tell the public. But they didn't listen and voted for this mess. Let them own it and live with it. of course, they'll have someone to blame for the mess. That way they don't have to take responsibility. It's more convenient that way. It's a shame we've come to that.
The UK tried the tax the rich tactic, and guess what? tax hikes on the wealthy LOWERED revenue to the government. In fact, it not only lowered revenue, but actually cost them the equivalent in US dollars of 11.2 billion. Now the government of Conservative Party Prime Minister David Cameron has announced that it will lower the top rate from 50 percent to 45 percent. Imagine that. The story will be the same here. Watch and see.
Revenue goes up when you take the claw out of the neck of the producers. Google this stuff. Amazing that we not only don't read history and learn from it, but another country tried exactly what we're doing with disastrous results! We havethe proof but refuse to see it because it's all about politics and money in pockets .
Tammy Osier
9:15 pm on Tuesday, December 11, 2012
Right now, we are in a catch 22. Many people are on umemployent because of no jobs. So, cutting spending on entitlements without stimulating the economy to create jobs would be futile. I'll look into it, but Clinton did a decent job on welfare reform. There's got to be a way to cut the waste there without hurting good programs. We need to have incentive to get off of it, and that's got to involve jobs. maybe cut some salaries in Washington and let them feel the same pinch everybody else is.
R++ - One of the famous "Dacula Crew"
11:34 pm on Tuesday, December 11, 2012
Yep he sure did, moved it right into the Farm Bills.
Of which upward of 80 percent of the spending has NOTHING to do with actual farming per se, but providing/paying for food PROGRAMS.
"It's the end of welfare as we know it, But I feel fine..."
Mike Lowry
8:54 am on Wednesday, December 12, 2012
We definitely have a spending problem, and have had it for 60 years. Study Calvin Coolidge for the right way to fix it. When faced with recession he cut the government in half and triggered a huge boom which only ended when Congress got greedy and started hiking taxes again.
As for what we need to cut, we should eliminate all government activities not specifically authorized by the Constitution. The federal government has no business being in the health care business, or the retirement business or the housing business or the education business or the transportation business (with the singular exception of the Interstate system). These are all the purview of the states (see Amendments, Tenth).
We are being boiled like a frog, with ever-increasing "benefits" that are strangling our freedoms and making us into a dependent society.
Tammy Osier
8:55 am on Wednesday, December 12, 2012
BINGO!
karsten said:
Government spending is just taking the money in with the left hand and doling it out with the right. After, of course, skimming a large percentage of it off the top.
Karsten Torch
9:33 am on Wednesday, December 12, 2012
This is not a hard concept. Spending is our problem. Revenue is only a problem because of our economy. Revenue has been pretty consistent over the last 60 years or so, averaging about 18% of GDP. We've had spikes, mainly the Clinton years when we had the dot com boom, but 18% is pretty comfortable. Through all tax hikes and cuts, that's what we get.
Spending this year is projected to be about 25%, maybe a little more. Revenue has never been that high, why in the world would anybody be delusional enough to think that revenue is the problem?
Here's your scenario - you work, let's say for yourself. You make $100,000 a year. Have made right at that amount for the last, let's say, 10 years. Not bad. But you're spending $120,000 (pretty close to the current ratio). Does it make more sense to think you're going to start making enough to cover your spending? Or would you reduce spending? Seems fairly simple when a little logic is applied, no?
Karsten Torch
9:44 am on Wednesday, December 12, 2012
As far as specific cuts? Defense would be one. Even I think our expenditures there are just too high. By roughly half, IMO. Entitlements would be another. Streamline, make sure anybody on them needs them. Cover children if necessary, make adults work. If they're on some form of welfare, they need to work, doing something productive. Give back. Unless they're completely incapacitated and brain-dead, there's something they can do to earn some of what they make. Foreign assistance is another area - we need the money here. Especially those countries that don't like us. I realize this is a small amount of the total, but every little bit helps.
And then, like has already been said, cut out the rest of what our government is not supposed to be doing. Pretty much, our federal government should be providing public safety, including courts and code enforcement, infrastructure, national defense, and that's pretty much it. Everything else is fluff. I'm one of the few with my level of conservatism or libertarianism or whatever you want to call it that does believe in a basic social safety net, but it needs to be very basic.
Stormin
3:12 pm on Monday, January 7, 2013
Yes the federal government has a revenue problem. The problem is there is no revenue since the government has no product to sell. The only money the government has is taken at gun point from the citizens. We used to call this robbery now we call it revenue.
Good Grief Y'all
4:27 pm on Monday, January 7, 2013
That's absurd.
Karsten Torch
11:37 am on Tuesday, January 8, 2013
In what way is it absurd?
Good Grief Y'all
12:37 pm on Tuesday, January 8, 2013
Karsten, revenues are necessary to run this country whether everyone uses all the services or not. Taxes are revenues. You don't pay what is legally owed, you'll face the IRS. This is absurd: "The only money the government has is taken at gun point from the citizens. We used to call this robbery now we call it revenue." If a person has to be locked up as a fugitive from justice, guns may be employed, just not to operate the IRS. If you don't want to obey the laws here in the US, leave and go some place where you agree with all the laws. You're going to be on a long, long journey.
Karsten Torch
1:06 pm on Tuesday, January 8, 2013
"If you don't want to obey the laws here in the US, leave and go some place where you agree with all the laws." And now you, as well, have lost the right to be taken seriously.
This is a tired argument. If you don't like the laws, you should change them. That's why we have the process of changing the laws. And I, like many, feel that we are already taxed too much, in many different ways. And that our government spends far more than it should.
So "go find someplace with laws you like" is an ignorant statement. At best.
Karsten Torch
1:08 pm on Tuesday, January 8, 2013
Also, regarding the "at the point of a gun" comment, this is absolutely true. If you're in violation of IRS law, how do they enforce them? With guns. The government gets what it wants because it is better armed than the populace. If you don't agree to go with them to be incarcerated, they will brandish weapons, threaten you with weapons, and finally will use weapons. So yeah, laws are enforced at the point of a gun. Just like taxes are collected....
Good Grief Y'all
1:41 pm on Tuesday, January 8, 2013
Karsten, who made you the King of all Patch threads? I don't care whether you take me seriously, but it is not for you to decide whether others do. Thought you were all about freedom? The law is the law. You don't like it, fine, break it and see if you like the punishment better than compliance. You don't get to choose which laws you get to obey without facing consequences. The guns don't come out unless you're a fugitive. Good citizens don't have to worry about govt. use of guns against them until they break the law. Well, there are some accidents, and there's war. That "point of a gun" in reference to legal taxes crap is what is ignorant.
Karsten Torch
2:45 pm on Tuesday, January 8, 2013
Wow. "King of all Patch threads." Cool new title, thanks for the moniker...
"The guns don't come out unless you're a fugitive. Good citizens don't have to worry about govt. use of guns against them until they break the law. "
So what you're saying is good little citizens follow the laws and don't question the status quo, right? Because to do so means that you're a bad person. Got it.
Just because a law is a law does not make it a just law. Or a good law. And the government gets to enforce its bad decisions "at the point of a gun." It's up to us as citizens to question the government. It's our duty, actually. As Americans. We don't have that right just because somebody thought it would be a neat idea to be able to say whatever we want to say. It's so that we will question our leaders and keep them on the correct path, whatever that may be. So if they pass a law that is silly, such as, for example, forcing a company against its religious beliefs to supply something at its cost, then it is the duty of that company to stand up and refuse to comply.
That is what America a great country. Not the over-indulged government arbitrarily passing laws because it thinks it knows what's best for us.
Good Grief Y'all
3:03 pm on Tuesday, January 8, 2013
Settle down, Karsten. I didn't anoint you. I asked you b/c of the comments you make declaring this or that of another poster, mind reading, etc. And you're quite proficient at twisting someone else's words or inserting them where they weren't. Example:
"So what you're saying is good little citizens follow the laws and don't question the status quo, right? Because to do so means that you're a bad person. Got it."
Nope - not at all what I said. When good citizens follow the law, then no guns are pulled. You can question all you want, campaign against, protest, petition. But until the law is changed, you must obey or suffer the consequences. Laws are challenged all the time, which is why the courts stay busy. That's also our right. But until the law is struck down by the courts or amended or repealed, it is the law. Your opinion on the law doesn't negate it or make it unenforceable. That's pretty simple. I think Grant is right, you do have a problem with logic. I'm not sure if it's that you go around in circles or you're in a spiral. You make it way too hard on yourself. I think you have a distorted view of America.
Karsten Torch
3:23 pm on Tuesday, January 8, 2013
That's fine. Accuse me of not listening or talking in circles. But I've noticed that you're not really paying attention to what I say, either.
What I said was, "If you don't agree to go with them to be incarcerated, they will brandish weapons, threaten you with weapons, and finally will use weapons. So yeah, laws are enforced at the point of a gun."
And this is true. I never said that you should disobey the laws. I said that IF you did, then... This is a little different from what you said. And it doesn't make my statement untrue - in fact it goes along with our premise that we either follow the law or we face the consequences. The same thing I'm saying. My point is the terminal point of those consequences involve federal authorities with firearms....
Good Grief Y'all
3:49 pm on Tuesday, January 8, 2013
You know full well what that "at the point of a gun" phrase in reference to taxes is meant to imply - fear. You break any law - local, state, federal, and you obstruct justice, refuse to comply, yes, you may be facing a gun. The IRS is not going to come knocking at your door with a gun to do a tax audit. Lots of people have evaded taxes and still haven't seen a govt. gun in their face.
Karsten Torch
4:27 pm on Tuesday, January 8, 2013
Of course they will. And those that have evaded taxes haven't seen a gun for one of three reasons - haven't been caught, went along quietly, or complied and paid what was owed. Any other options, the guns come out.
But that's not really the point. My point was that the threat of force is what ensures compliance. There's plenty of laws that I follow because I want to. Plenty I follow because I don't feel it's important enough to me to face the consequences if I don't. And others I choose not to follow, and I'll accept the consequences should I get caught. Just like everybody else.
Good Grief Y'all
5:03 pm on Tuesday, January 8, 2013
Really, the IRS auditors carry? As a part of their job? You're something else, Karsten. The rest of what you said,? . . . you're belatedly agreeing with me.
You and Racer remind me of a couple of little boys walking around in their daddy's shoes. You should rethink that breaking the law stuff. You might come to regret that. If you break laws (dishonest), you probably lie (dishonest), too, so it's a wasted effort to take you seriously. Not like everybody else. That's delusional. That's a sad and risky way to make yourself feel better about something you must know is wrong.
Karsten Torch
5:22 pm on Tuesday, January 8, 2013
IRS does carry. Not auditors, granted, but if you don't cooperate with auditors, who do you think shows up next? Please, think before you post.
So, you never speed? At all, not one little bit? Maybe especially on roads that you think the speed limit is a bit too low for? If you find $20 in front of a supermarket, you report that to the IRS? There's lots of little examples every day. But, if you don't, you don't. Good for you. I guess you are a good citizen.
Oh, and illegal isn't the same thing as wrong. Wrong has to do with morals. I follow my morals every day. Even on things that aren't illegal that I still know are wrong. I don't always stop and ask myself "Would Uncle Sam want me to do this?" I stop and ask if God would want me to do something, and try to act accordingly. THAT is my center. Not government.
Good Grief Y'all
7:34 pm on Tuesday, January 8, 2013
Yes, I think before I post. And, again, you're just belatedly agreeing with me on the gunpoint-tax issue.
No, I don't speed. Learned that lesson a few expensive times a couple of decades ago. Speeding doesn't get you there any faster, in most cases. Have you ever noticed, driving along and somebody flies past you. You stay steady on the speed limit, and then you pull up right behind or beside the driver in a hurry at the next traffic light? And speeding is dangerous, especially in the digital age adding more distractions. Haha. This driving talk reminds me of that old, old song, "Keep your mind on your driving, keep your hands on the wheel, and keep your snoopy eyes on the road ahead . . . "
I haven't been lucky enough to find money, but I believe I would probably donate it to the church or a charity if there was no evidence of its owner in the vicinity. I'm not perfect by any means, but if it's not mine I can't enjoy it. Report $20 to the IRS? It's a wash if you just donate it. I don't cheat on taxes.
If you're constantly asking yourself if something is wrong and whether to do it, maybe you're conflicted. You're the one who said you choose which laws to break - your confession, not my accusation. God probably wants you to obey the laws.
You're nothing if not persistent.
Jackie Irish
11:41 am on Tuesday, January 8, 2013
The real deficit in Washington (and America) is humility.
You "know" the right answer and don't want to hear from someone else that you could be wrong. I "know" the opposite is right and feel the same way about you. Someone else "knows" we're both wrong and feels the same way about both of us. Round and around it goes.
It's always blame the other group because that's easier than admitting the simple solution isn't always the correct one -and usually isn't when you're talking about something as complex as how to run the most powerful nation on Earth.
Revenue problem? Maybe.
Spending problem? Maybe.
Both? Maybe.
Neither? Maybe.
We tried Bush tax cuts and wars we couldn't pay for and we got into a recession. We're trying raising taxes now (and not cutting spending; at least not quite yet). Maybe that will work. Maybe not.
You don't know. I don't either.
Admit to that and you just might be open enough to finding a solution that actually works.
Jake Lilley
1:01 pm on Tuesday, January 8, 2013
The only people who don't understand this problem are those who have never managed to balance their own household budget.