[quote=livinincali][quote=SK in CV]
Except we haven’t taxed more. And we haven’t spent much more. Taxes have gone down for almost everyone over the last 4 years. And spending is growing at the smallest rate in decades, and most of that increase has been purely a function of the economy and demographics.[/quote]
Notice how revenues have stagnated over the past 10 years yet spending has increased. Revenues are based on number of people working, their nominal wage gains and the tax rate. Everybody agrees that wages have stagnated. Look at a chart of number of people working and that hasn’t gone up much, and the tax rate has basically remained the same or gone down.[/quote]
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.)
