SebastianJer

Federal Spending What?
Posted by: sebastianjer, 04:25 GMT le 31 août 2011 +0


Federal Spending What?

Let's begin with this.
Whose Money ?

Everyone employed in America falls into one of three categories:

1. They are self-employed (me)
2. They are employed in the private sector (the majority of Americans)
3. They are employed in the public sector (teachers, city workers, federal workers, military etc)

This is important in a very simple way, these three categories of people are responsible, directly or indirectly, for all of the revenue of the Federal Government. Remember this when you hear the term Government spending, it may be the government doing the spending but it is those three categories of people, (every employed US citizen's money. I know some will argue that the unemployed pay taxes too, but the fact is that the taxes they pay are derived from the taxes paid by those employed or if the unemployed should find employment then they too will be paying taxes as one of those three categories of persons. Simple, right?

I said that all of the Federal Governments Revenue comes directly or indirectly from these people US. Let's first look at the direct revenue. The following figures are from 2010

Directly

The largest chunk of Federal Revenue comes from Individual Tax Payers 41.6% of all revenues (898.5 billion)

The next largest is payroll taxes (Social Security, Medicare, etc.) 40% of all revenues (864.8 billion)


These are direct revenues paid by individual Americans or their employers to the Federal Government which account for 81.6 % of all Federal Government revenue. There really should be no debate that the majority of Federal revenues is in fact our money, right?

Indirectly

Now for the indirect money whch we all pay to the Federal Government.

The largest of these is Corporate Taxes 8.9% of Federal revenues (191.4 billion)

Although it is popular to say that corporations don't pay their fair share the truth is, as Mitt Romney recently put it, "corporations are people." If corporations pay more in taxes then they must either cut somewhere such as in employee benefits or compensation or they must pass on the extra burden to the consumer-people.

Now it can be argued that some corporate officers make exorbitant salaries and receive immense compensation packages and perks, but in reality those end up being part of the 81.6% of direct revenues to the government. And the truth is that the more you make the more you pay in taxes so those overpaid corporate types actually pay more towards the direct revenue of the Federal Government. There is much more to be said on this but let's keep it simple. Corporations are responsible for almost 9% of all Federal revenues.

Next comes Customs, duties and misc. at 5.6% of all Federal revenues (121.2 billion).

Virtually all of this is ultimately passed onto the consumer and like all the other indirect revenues we pay to the Federal Government is relatively speaking rather minor compared to our direct contributions.

Next is Federal Excise Taxes 3.1% of all Federal Revenues (66.9 billion)

This is the federal taxes on gas, tires and other items. The majority of these could actually be called direct revenues since most of them are paid directly by US, but some are paid by manufacturers and then passed onto us, so we'll call them indirect.

Finally we have Estate and Gift Taxes .09% of Federal Revenues (18.9 billion)

Again these are probably more a direct tax but most of these are paid by dead taxpayers so we'll call them indirect. Actually it is the survivors of the dead taxpayers who pay this but as you can tell it is a very small portion of Federal revenues even if a very large sum for the individuals who have to pay it.

So there you have it, that is all the revenues that come into the Federal Government. To save you the trouble that is almost 2.263 trillion dollars. How much did we spend? Just over $3.456 trillion which left us with a deficit of almost 1.3 trillion dollars. How ridiculous is a 1.3 trillion dollar deficit in one year? Well the entire US Government ran on 1.3 trillion dollars way back in, guess? Can you guess how long ago the Federal Government ran on 1.3 trillion dollars? Think about it. Where do the revenues come to pay for that 1.3 trillion difference between what we give the Federal Government and they spend? The tooth fairy? No from future taxpayers either you or your children or their children or....

The point of this is to show that when we talk about Federal Spending we are not talking about some mysterious entity out there spending their money that benefits us. We are talking about our money being taken from us in one way or another and then being spent by a government which is not only wasteful, it is influenced by special interest of all types which more and more determine how that money, our money, is spent to benefit their...well their special interest.

Just too big

It is not as if all these special interest are bad, most are actually good, well for their special interest. And it is not as if the politicians that pander to these special interest are bad, it is just that the system has devolved into a corruption of governance. Why? Because the Federal Government has so much of our money and so much power that more and more special interest need to go to it in order to survive or to prosper. It is not the special interests which have corrupted government as much as it is an out of control Federal Government that has created an environment where only special interests can gain access. Why?

Simply because the Federal Government has grown so large with so much of our money that it has lost all semblance of being a government "for and by the people" and instead has become a gluttonous entity that has lost the trust of the very people it is supposed to serve. A recent poll shows that just 23% of Americans believe that the Federal Government has the consent of the governed. Here is why:

The Political Class, however, strongly disagrees. Seventy-nine percent (79%) of those in the Political Class believe the government does have the consent of the governed. Seventy-five percent (75%) of Mainstream voters don't share that view.


Do you see the total disconnect here? The people in government think they are serving US while those out of government do not. How can this be? They live in a bubble within a government so large that they do not even have to understand the rest of the country in order to feel as if they are doing what is right for the country, the process of government is their nation rather than the nation itself.

What is the solution? There is only one solution, shrink the size of the Federal Government. Disperse it's power back to the states and localities closer to the people where it is most responsible.

Taxes are not the problem, it is not about the money, it is about the power that the taxes and the money gives to an out of control Federal Government which has totally lost sight of its intended purpose. Which is? To protect the liberties of its people.

In 1991 the Federal Government ran on the amount of the deficit spending in 2010. In twenty years we have gone from a Federal Government that could operate for a year on 1.3 trillion to one that spends 1.3 trillion dollars more than it brings in.

Whose money?

Our money.
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1. sebastianjer 11:52 GMT le 31 août 2011    
excerpts from article worth the time

Compounding Disaster

By Ross Kaminsky

...After all, if the federal government can't even do well those few non-military things it's actually supposed to do, like immigration, why do we want or expect it to do a good job with things it was never supposed to do, like being involved in flood insurance (or health insurance for that matter)?

Like the famed blind squirrel, Ron Paul gets it right when it comes to FEMA, arguing that it completely perverts the idea of insurance through the National Flood Insurance Program. Since when is it the responsibility of a Coloradoan to subsidize the risk taken by someone who doesn't just build a beach house in a hurricane-prone coastal region, but who then uses other people's money to rebuild it when big bad hurricane Wolf blows it down?

Sure, when private markets provide flood insurance, the price is higher than the government-issued and taxpayer-subsidized program we have now and would thus likely pressure the real estate values of homes whose owners need the insurance. But that's life. Among the rights granted in our Constitution, one does not find the right to have others assume your risk. Such socialization of risk (as seen most famously in the TARP program, other bank bailouts, and the Obama Administration's destruction of decades of law in the reorganizations of GM and Chrysler) is anathema to the Founders' explicit aims. After all, the conception of the role of the state to protect "life, liberty and property" as originally drafted for the Declaration of Independence wasn't about government making Mr. Smith protect Mr. Jones' property. If Jones' property is more likely to be destroyed in its particular location, then it is worth less than it otherwise would be without that risk… and it shouldn't be Smith's problem....
Member Since: 26 août 2005 Posts: 1030 Comments: 11197
2. sebastianjer 12:02 GMT le 31 août 2011    


Federal Fever

By Bruce Walker

If the body politic is sick, blame federal fever, a delusional ailment causing swelling of the federal element of the Republic. Most of the problems caused by politics and government in America today are caused by the federalization of government power and by the unnatural elevation of the judiciary over the elected branches of government. This surely does not mean that lousy folks and dirty crooks cannot win state and local elections and cannot create political machines. What it does mean, however, is that Americans and their businesses can pull up and move to states that are friendlier or more honest.

The vital importance of sovereign states is, perhaps, the salient feature of our Constitution. Each state has its own Bill of Rights, sometimes with more protection than in the federal Bill of Rights, but each state also retain the power to do things which would make modern Americans nervous. Homicide, for example, is defined by state law. Rape is too. Any state could pass a law which effectively decriminalized either crime, but although state criminal laws all vary in different ways, no state has ever come close to legalizing murder or rape.

By the same token, the issue of religion and government was left by the Constitution and the Bill of Rights, completely up to state governments. The dismantling of state churches took place voluntarily in the decades following adoption of the Constitution and without any recourse to federal rights at all. This marketplace of states allows the people of each state to resolve thorny social issues. If in Vermont school prayer is viewed with horror while in Nebraska school prayer is considered critical to moral education, the values of both states' citizens, in a truly federal republic, get what they want. (That is also the quid pro quo of federalism: we accept the decisions of other states even when those seem wrong to us.)

State governments provide a marketplace for Americans. Although some parts of the nation have natural advantages, like San Francisco and Boston, these advantages tend to become less important over time or to be balanced by advantages in other regions. After air conditioning became standard, the oppressive heat of the Gulf region became less important than the very mild winters.

State governments are also much closer to the people. A state house member in North Dakota, for example, has fewer than 7,000 constituents which mean that there are about 2,000 homes in his district. In an election, a candidate can visit every single home in the district and voters can size him up personally. Shoe leather means as much as campaign money in this sort of race.

Perhaps just as important, local media can cover state issues and politicians. These local media are close, often very close, to the lives of ordinary people. Viewers and listeners have direct sources of information: gossip at work, talk at church, discussions at civic groups, and visiting with neighbors. Any local media that presented the news poorly, either by incompetence or ideology, finds its credibility eroding from the ground up.

The greatest problem our nation faces is the usurpation of state power by the federal government. Polls suggest that voters now get that truth. Pew Research has published in late August a poll which shows that 84% of Americans are either "frustrated" or "angry" with the federal government, which is the highest in the fifty-three years since Pew Research polled the issue, and only 11% of Americans are "content" with the federal government.

Gallup has an equally damning poll which shows that the federal government is dead last among twenty-five "institutions" with 64% of respondents having a "somewhat negative" or "very negative" view of the federal government, while only 17% of Americans have a "very positive" or "somewhat positive" view of the federal government. Gallup, which shows polling data over the last eight years, also reveals that this is a dramatic drop in support for the federal government.

Rasmussen asked a slightly different question. Which level of government respondents did a better job? Local government was the choice of 33% of respondents; state government was 23%; and the federal government was 15%, and 13% were not sure. When asked if the federal government had too much power over the states, 50% agreed, 11% thought the federal government needed more control; 26% thought the balance was about right; and 13% were not sure.

The Tenth Amendment is possibly poised for a revival in the Supreme Court jurisprudence. Liberal writer Jeffrey Toobin of the liberal New Yorker has written an important reconsideration of the work of Justice Clarence Thomas, making the case that he has been the intellectual mainspring for moving the Court in the direction of weighing the Tenth Amendment more heavily. Walter Russell Meade of the American Prospect lays out where this could take us

Washington and its denizens, those who profit off the hyper-concentration of power in this federal district far away from most Americans, are increasingly -- and quite correctly -- seen as the problem. Candidates who campaign on that theme will be in tune with the national mood and those who defend Washington and federal overlordship will find themselves alone except for the elites who love centralized power.

The real victory, though, will not be who wins the White House and who controls Congress, but who actually begins to reverse the steady, sickly accretion of federal power and to restore to sovereign states those rights which are crucial to a happy and healthy republic. "Washington Fever" has infected America, and unless we are cured, things will never get better.
Member Since: 26 août 2005 Posts: 1030 Comments: 11197
3. Beachfoxx 13:13 GMT le 31 août 2011    
Another great blog!
Member Since: 10 juillet 2005 Posts: 153 Comments: 29285
4. richteas 02:28 GMT le 01 septembre 2011    
"Like the famed blind squirrel, Ron Paul gets it right when it comes to FEMA, arguing that it completely perverts the idea of insurance through the National Flood Insurance Program. Since when is it the responsibility of a Coloradoan to subsidize the risk taken by someone who doesn't just build a beach house in a hurricane-prone coastal region, but who then uses other people's money to rebuild it when big bad hurricane Wolf blows it down?"


What's the difference if the person who INSISTS on building a beach front home is insured by private or federal insurance? Either way the PUBLIC is paying for rebuilding his/her home. Private Insurance Premiums are set by the Amounts Paid Out the previous year. So, with Private Insurance, that person in Colorado is very likely to still be paying for the reconstruction of that idiots beach front home when he pays for his home owners insurance.

The reason Private Insurance Companies don't want the Federal Government involved is it cuts into Their robbing that person in Colorado for the idiot on the beach! Just as the Health Insurance Companies and Pharmaceutical Companies locked themselves into the Oval Office with President George W. to come up with their UNPAID Medicare Part-D.
AND, refusing to allow people to get medication more cheaply from Canada.

What motivates Insurance Companies, and the Republicans is PROFIT, NOT THE WELFARE OF THIS COUNTRY OR IT'S CITIZEN'S!
Member Since: 10 juillet 2007 Posts: 7 Comments: 664
5. richteas 03:11 GMT le 01 septembre 2011    
I wanted to add just a footnote to what I wrote above: I have absolutely nothing against a person, company, or even a corporation making a profit! My objection comes to the point of, just what level of outright GREED is involved in today's business. Corporations NOT Paying ANY taxes what so ever! Hedge Fund Managers making Millions and doing nothing beneficial Civilly with said wages. I could go on and on.

I'll use a phrase I've been hearing a lot lately, 'In the day...',

There was a time in U.S. History that wealthy persons, store owners, companies, and if there where any yet, corporations actually did large scale projects to benefit the community or state in which they were located. Take the 'Lafayette County Courthouse in Darlington Wisconsin'..."It was built between the years of 1905 and 1907 at a cost of over $136,000. The money for construction was bequeathed to the county by Matt Murphy of Benton, Wisconsin. In his will, he provided that 70% of his estate be used to construct a County Courthouse.

A note for historical trivia buffs: Lafayette County Courthouse is the only county courthouse in the United States fully funded by a single person."

(source: http://historicplacesphotography.com/wisconsin/laf ayette-county-courthouse )

PLEASE, go to that web address to see a photo of what JUST ONE MAN WITH A CIVIC MIND CAN DO. Imagine what todays Corporations could do for schools IF they even cared to.

It's The Greed Today that I object to. What happened to being civic minded? When did caring become A SIN???
Member Since: 10 juillet 2007 Posts: 7 Comments: 664
6. sebastianjer 03:20 GMT le 01 septembre 2011    
richteas,

just curious are you 12 or thirteen years old?
Member Since: 26 août 2005 Posts: 1030 Comments: 11197
7. NumberWise 03:58 GMT le 01 septembre 2011    
Jer, I agree whole-heartedly with what you wrote in your header. Well said!
Member Since: 22 octobre 2005 Posts: 0 Comments: 1566
8. richteas 20:37 GMT le 02 septembre 2011    
55 and proud of it!

But, apparently I was also raised in a period, area, and town in which being Civic Minded was a Good Thing!

I swear, If Jesus Christ were alive today, The Tea Party would be screaming for his Crucifixion, and the Republicans would be acting as the Roman Guards at the foot of the cross!

(And you? Your Age? You've mentioned Berkley several times; what? Too Much "Kool-Aid"?
Member Since: 10 juillet 2007 Posts: 7 Comments: 664

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