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Thread: Mandatory Spending--Interest and Entitlements make up 64% of budget

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  1. #1
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    Mandatory Spending--Interest and Entitlements make up 64% of budget

    And it will only get worse with the $1 trillion deficit spending increasing the national debt each year. The increased debt increases, in turn increases interest expense. Mandatory increases in entitlement obligations are the primary reason for the annual deficit spending. And it only gets worse as the baby boomers reach retirement age. SS and Medicare spending has got to be dealt with to avoid a Greece-like situation in the US in the next 3 to 5 years.

    Budget Shortfall Looks Out of This World

    http://online.wsj.com/article/SB1000...hatsNewsSecond




    That underscores the government's fiscal challenge as it looks to bring long-run deficits to heel. It also highlights dangers for both stock and Treasury investors that will become more apparent later this year—austerity of some flavor likely lies ahead, creating a fiscal drag that could sap economic growth, and with it, stock prices. But if government fails to react, today's superlow Treasury yields may be wildly underestimating the risks facing investors.

    The reduction (the Obama Budget) is largely dependent on the elimination of tax breaks—no sure thing. And it is tough to make up the difference through spending cuts. Strip away mandatory spending, interest payments and defense appropriations, and only about 19% of the current fiscal year's budget is truly discretionary. Even shutting down everything outside that mandatory and defense bucket would have left a deficit of nearly $700 billion in the current fiscal year.

    They also don't include off-balance-sheet liabilities like Fannie Mae and Freddie Mac.Whatever the mix of higher taxes or spending cuts, a big fiscal drag will hit economic growth.

  2. #2
    Conservatives will never get it. They all want to reduce spending (FINE BY ME) but the fact they're so against any taxes, that is the gist. The deficit will never be resolved without any new taxes implemented, we will have to raise taxes to make any kind of headway towards getting the deficit back to 0. Grow some gonads and just do it and quit being such a resistance.

  3. #3
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    Quote Originally Posted by Huskers57 View Post
    Conservatives will never get it. They all want to reduce spending (FINE BY ME) but the fact they're so against any taxes, that is the gist. The deficit will never be resolved without any new taxes implemented, we will have to raise taxes to make any kind of headway towards getting the deficit back to 0. Grow some gonads and just do it and quit being such a resistance.
    Do you not see that mandatory spending is going to consume the entire Federal revenue in a few years? Your posts reflect the same ignorance as CM's posts. Most conservatives want tax reform with entitlement reform. Democrats/liberals want increased taxes on such a small portion of taxpayers that it will have very, very little effect on deficit spending. And when entitlement spending reform is brought up by Conservatives you bring out the video of grandma being pushed off the ledge. It is no wonder the vitriol is so grand.

  4. #4
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    Quote Originally Posted by tango View Post
    Do you not see that mandatory spending is going to consume the entire Federal revenue in a few years? Your posts reflect the same ignorance as CM's posts. Most conservatives want tax reform with entitlement reform. Democrats/liberals want increased taxes on such a small portion of taxpayers that it will have very, very little effect on deficit spending. And when entitlement spending reform is brought up by Conservatives you bring out the video of grandma being pushed off the ledge. It is no wonder the vitriol is so grand.
    Now you're just going way off into the weeds. Who brought up the "death panel" strawman when a serious discussion of cost/benefit analysis was ongoing?

    As far as my ignorance goes, please explain what the ultra conservatives such as yourself (i.e. not traditional, mainstream conservatives) would be ok with in terms of raising taxes? Your idea of "tax reform" is to make the tax system more regressive.

    By the way, your facts are just so incoherently wrong that it's impossible to even attempt to correct them all.
    "We need education in the obvious more than investigation of the obscure."

    "If you find yourself on the side of the majority, it's time to pause and reflect."

    “A stupid man's report of what a clever man says can never be accurate, because he unconsciously translates what he hears into something he can understand.”

  5. #5
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    Quote Originally Posted by cm husker View Post
    Now you're just going way off into the weeds. Who brought up the "death panel" strawman when a serious discussion of cost/benefit analysis was ongoing?

    As far as my ignorance goes, please explain what the ultra conservatives such as yourself (i.e. not traditional, mainstream conservatives) would be ok with in terms of raising taxes? Your idea of "tax reform" is to make the tax system more regressive.

    By the way, your facts are just so incoherently wrong that it's impossible to even attempt to correct them all.
    You could tax nearly all the wealth of the top 15% and barely put a dent in the deficit...that is before you factor in the effect the high tax rate would have on the economy and then add in the growth rate of the budget. Taxing is not the exit to our problem, drastically cutting spending thru actual cuts in the budget and real reforms of entitlements.

    As for this how regressive term...anything that reforms the tax code and broadens the tax base will be pegged as regressive. It is meaningless term at this point. For people that use it it usually only means tax changes in one direction and that is tightening up the tax code.

    How does our progressive tax code stand under the concept of equality under the the law?
    As government gets bigger people get smaller

  6. #6
    Quote Originally Posted by FLA4NEB View Post
    How does our progressive tax code stand under the concept of equality under the the law?
    Everyone is taxed equally at the same level of income. In other words, even if I make 388,400, my first $8700 is taxed at 10%, between $8700 and $35,000 is taxed at 15%, between 35,000 and $85,000 is taxed at 25%, between $85,000 and $178,000 is taxed at 28% and between $178,000 and $388,350 is taxed at 33%. Only my last fifty bucks of income is taxed at 35%.

    So everybody pays the same percentage of income tax for that level of income. The inequality in the tax system arises from all of our deductions, credits, writedowns, and rebates.
    "The distinctive mark of the Christian, today more than ever, must be love for the poor, the weak, the suffering." Pope John Paul II


  7. #7
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    Quote Originally Posted by FLA4NEB View Post
    You could tax nearly all the wealth of the top 15% and barely put a dent in the deficit...that is before you factor in the effect the high tax rate would have on the economy and then add in the growth rate of the budget. Taxing is not the exit to our problem, drastically cutting spending thru actual cuts in the budget and real reforms of entitlements.
    Growth is the answer to our problems, not draconian cuts to things like welfare and education, which just like your "tax the rich does not real good" theory, account for a small % of our budget.

    Yes, social security and the medi's need to be reformed, mainly in terms of making them more progressive and delaying/reducing benefits.

    As for this how regressive term...anything that reforms the tax code and broadens the tax base will be pegged as regressive. It is meaningless term at this point. For people that use it it usually only means tax changes in one direction and that is tightening up the tax code.
    We do not need to "broaden the base." Things like the EITC and the sharing of our rocketing (minus the recession) productivity, which means huge profits (a great thing!) for business and a decrease in labor costs (i.e. less need for workers), are extremely important things for our economy. These are the things, as Reagan recognized and spoke about, that we as a nation should pay for because they will make us stronger.

    I agree we need to "tighten the tax code" but that doesn't mean we should tax the poor and middle class more heavily.

    How does our progressive tax code stand under the concept of equality under the the law?
    Quite well, and it always has.
    "We need education in the obvious more than investigation of the obscure."

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  8. #8
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    I agree with 57. Those interest payments are money well spent.
    http://www.timeanddate.com/countdown...+OUT+OF+OFFICE

    Quote Originally Posted by cactusboy View Post
    So...when in doubt check out Wiki

  9. #9
    and yes it's going to hurt, but it has to be done. to hell with ideology.

  10. #10
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    Quote Originally Posted by Huskers57 View Post
    and yes it's going to hurt, but it has to be done. to hell with ideology.
    It's going to damn hurt. To hell with that damn ideology.
    http://www.timeanddate.com/countdown...+OUT+OF+OFFICE

    Quote Originally Posted by cactusboy View Post
    So...when in doubt check out Wiki

  11. #11
    Quote Originally Posted by Sonuvahusker View Post
    It's going to damn hurt. To hell with that damn ideology.
    damn you.

  12. #12
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    You can raise taxes all you want. Historically we have only collected 18% of GDP (no matter what the rates are).

    As a conservative I want to rip the whole code out an replace it. Replace it with a pro growth tax code that is simple and easy to understand and treats everyone the same. No loopholes, no deductions, no tax credits, no manipulations....you earn it you pay some % on it.

    It is the spending that is causing the problem and we need to have a true balance approach and cut the budget across the board. All we see from Congress is nibbling around the edges on the rate of growth...no real cuts.

    If we don't take the hard medicine now and cut the spending then in a few years those entitlements will run dry as we get swamped with debt service (which will come first be for anything).
    As government gets bigger people get smaller

  13. #13
    Quote Originally Posted by FLA4NEB View Post
    You can raise taxes all you want. Historically we have only collected 18% of GDP (no matter what the rates are).

    As a conservative I want to rip the whole code out an replace it. Replace it with a pro growth tax code that is simple and easy to understand and treats everyone the same. No loopholes, no deductions, no tax credits, no manipulations....you earn it you pay some % on it.

    It is the spending that is causing the problem and we need to have a true balance approach and cut the budget across the board. All we see from Congress is nibbling around the edges on the rate of growth...no real cuts.

    If we don't take the hard medicine now and cut the spending then in a few years those entitlements will run dry as we get swamped with debt service (which will come first be for anything).
    2 words.

    Fair Tax.

  14. #14
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    Quote Originally Posted by Huskers57 View Post
    2 words.

    Fair Tax.
    I use to be a big supporter but it is to complex to implement. You get similar results with a flat tax without all the constitutional headaches.
    As government gets bigger people get smaller

  15. #15
    Quote Originally Posted by Huskers57 View Post
    2 words.

    Fair Tax.
    2 words.

    Bad Idea.
    "The distinctive mark of the Christian, today more than ever, must be love for the poor, the weak, the suffering." Pope John Paul II


  16. #16
    Quote Originally Posted by ChitownHusker View Post
    2 words.

    Bad Idea.
    1 word.

    Perlologist.

  17. #17
    Quote Originally Posted by Huskers57 View Post
    1 word.

    Perlologist.
    Guilty as charged.
    "The distinctive mark of the Christian, today more than ever, must be love for the poor, the weak, the suffering." Pope John Paul II


  18. #18
    tangoy tangoy...I'm all for entitlement reform.

  19. #19
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    Quote Originally Posted by Huskers57 View Post
    tangoy tangoy...I'm all for entitlement reform.
    Sorry if I mis-characterized. Maybe I have you mixed up with another poster. My apologies.

  20. #20
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    Quote Originally Posted by Huskers57 View Post
    tangoy tangoy...I'm all for entitlement reform.
    If your not for abolishing all forms of "entitlements," you're not for reform, at least according to some here.
    "We need education in the obvious more than investigation of the obscure."

    "If you find yourself on the side of the majority, it's time to pause and reflect."

    “A stupid man's report of what a clever man says can never be accurate, because he unconsciously translates what he hears into something he can understand.”


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