[quote=SK in CV]
If you go back another couple years, revenue decreased over the last 12 years. If revenue had simply kept up with inflation since 2000, the current budget would be balanced. Revenues are not solely based on the number of people working. It’s also based on the effective tax rates on all income.
Again, much of the increase in entitlement spending is purely demographics, and more recently, a function of the economy, not statutory increases in entitelments. Almost 1/3 of the increase in entitelment costs are SS old age benefits, yet SS as a whole still does not materially contribute to the deficit. And net OASI taxes collected (including SE tax) increased by more than 1/3. (SS benefits paid are roughly equal to additions to the SS trust fund.)[/quote]
In 2000 total gross income was 6.4 trillion with about 105 million tax returns. In 2009 which is the most recent data it was 7.4 trillion with 104 million returns. Spending has gone up 50% since 2000. Government spending has grown faster than everything else including inflation, GDP, total taxable income, etc. Inflation is up about 33%. GDP is up about 23%. Total Gross income is up less than 20%. It is a spending problem and primarily a medical entitlement spending problem.
Are there some moral ramifications to cutting back? Sure. I won’t argue that point. I’m just going to argue that there isn’t a tax base that allows you to keep those promises for the aging population. It would be great if we could give every child their own personal tutor but it costs too much so we don’t do it. The same is going to have to be true with some entitlements. Wheelchairs instead of hip replacements. Hospice instead of million dollar cancer treatments for some will become a reality one way or another. Maybe we’ll decide standing in line is more fair than having accumulated wealth. Maybe we’ll decide that everyone smart enough to be a doctor will have to become one and be obligated to provide low costs services.
How far can you go taxing the rich and putting the youth in debt until they say F U? Because once you get to that point you can’t take it back.
