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Let's suppose the COngress decided to RETIRE The entire national debt as quickly as possible. Here's how that lays out:
The government imposes a 100% income tax rate on EVERY AMERICAN INDIVIDUAL AND BUSINESS. That means, whatever the total taxable income of everyone and every biz in the US has to pay every cent of that in to the IRS. Essentially, nobody can spend ANY of the money they earn. Now, for this to work, the federal government goes completely out of business until the debt is retired. SS, as an earned entitlement though, does continue to be paid. No federal spending for defense, miltary, federal salaries and retirement, medicare, medicaid, education dept, energy department, EPA, welfare, food stamps, etc....none of them get ANY money to spend. The one year total federal government spending that would be stopped is approx $3.6 TRILLION.
Even with NO GOVT SPENDING, the IRS would take in $7.3 TRILLION a year so in two years, the government could almost raise enough revenue to pay off the national debt...BUT, you can spend nothing, buisnesses can spend nothing,,,,I know, a bit absurd, but my point is this. The CURRENT national debt is so freakin much that even with a 100% income tax rate and shutting the government down COMPLETELY, it would take two years worth of our combined labors to pay this off.
My point is that if anyone believes that we are not up the debt shit creek, they are morons. So, when Washington talks about our debt problem, it really is a debt problem. The Paul Ryan budget, which has been labeled by the left as draconian with spending cuts that we just cannot make, cuts $6 trillion from the national debt over ten years. THIS IS VERY IMPORTANT AND FEW PEOPLE EXCEPT EGGHEADED ECONOMISTS AND CPAS LIKE MYSELF UNDERSTAND THIS.
The $6 TRILLION in Ryan cuts reduces the forecasted FUTURE DEFICITS by $6 TRILLION...not the current $14.3 TRILLION DEBT. Under the last Budget passed by Congress, the national debt ten years out will be $26 TRILLION...so Ryan's budget results in ONLY a $20 TRILLION national debt in ten years. I'm not debating the merits of the Ryan budget, just trying to demonstrate, in another form, how freakin serious this problem is.
Comments and counter arguements welcome.
The government imposes a 100% income tax rate on EVERY AMERICAN INDIVIDUAL AND BUSINESS. That means, whatever the total taxable income of everyone and every biz in the US has to pay every cent of that in to the IRS. Essentially, nobody can spend ANY of the money they earn. Now, for this to work, the federal government goes completely out of business until the debt is retired. SS, as an earned entitlement though, does continue to be paid. No federal spending for defense, miltary, federal salaries and retirement, medicare, medicaid, education dept, energy department, EPA, welfare, food stamps, etc....none of them get ANY money to spend. The one year total federal government spending that would be stopped is approx $3.6 TRILLION.
Even with NO GOVT SPENDING, the IRS would take in $7.3 TRILLION a year so in two years, the government could almost raise enough revenue to pay off the national debt...BUT, you can spend nothing, buisnesses can spend nothing,,,,I know, a bit absurd, but my point is this. The CURRENT national debt is so freakin much that even with a 100% income tax rate and shutting the government down COMPLETELY, it would take two years worth of our combined labors to pay this off.
My point is that if anyone believes that we are not up the debt shit creek, they are morons. So, when Washington talks about our debt problem, it really is a debt problem. The Paul Ryan budget, which has been labeled by the left as draconian with spending cuts that we just cannot make, cuts $6 trillion from the national debt over ten years. THIS IS VERY IMPORTANT AND FEW PEOPLE EXCEPT EGGHEADED ECONOMISTS AND CPAS LIKE MYSELF UNDERSTAND THIS.
The $6 TRILLION in Ryan cuts reduces the forecasted FUTURE DEFICITS by $6 TRILLION...not the current $14.3 TRILLION DEBT. Under the last Budget passed by Congress, the national debt ten years out will be $26 TRILLION...so Ryan's budget results in ONLY a $20 TRILLION national debt in ten years. I'm not debating the merits of the Ryan budget, just trying to demonstrate, in another form, how freakin serious this problem is.
Comments and counter arguements welcome.
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