7.23.2012 READY TO HIT THE FINANCIAL BRICK WALL?

world, 5.19.12, p12...when the u.s. senate on a procedural vote, killed the so-called buffet rule last month, even some liberal lawmakers and pundits said it was more about politics than economics. the rule would have imposed a 30% tax on all income for people making more than 2 million a year and would have generated about 5 billion a year in additional tax revenue, or about 0.2% of total tax revenue.

the bottom line: a tax increase, even a dramatic one, will not solve the debt problem, and a tax increase brings with it the probability of sending much needed capital to other countries. the following chart looks at the federal budget and then eliminates 8 zeros, bringing the problem into sharper focus.

u.s. federal budget in numbers we can all understand:

u.s annual tax revenue                                                                      $2,340,000,000,000
federal annual spending budget                                                         $3,590,000,000,000
new annual debt from overspending this year                                    $1,250,000,000,000
national debt                                                                                  $15,400,000,000,000
last year's budget                                                                                  $38,500,000,000

now remove 8 zeros and pretend it's a household budget:

annual family income                                                                                           $23,400
$ the family spends annually                                                                                $35,900
new debt added to credit cards                                                                           $12,500
outstanding balance on credit cards                                                                   $154,000
total cuts to the family budget                                                                                   $385

our country is so concerned about the upcoming presidential election. the predominance of attention to the so called 'power position' tells me one thing. the people that currently live here feel that they are not able to take care of themselves. most all are already bonifide slaves with the titles of 'free' and 'brave' stenciled on their foreheads like an advertisement promising what it has no power to produce.

if we were all responsible...or at least enough of us to form the majority necessary, we would have long ago begun to systematically impeach government officials at every level who budgeted a nickel more than what a reasonable tax rate would support. the trouble is there are not enough of us.

oh that i would be responsible enough to be content with just enough (food and simple covering from the weather) to live...and that you would be too..