We need to cut federal
spending by $1 trillion. US government, healthcare and education are overpriced
and underperforming. Congress hasn’t done its job for decades. Government needs
to be limited and automated. Bad laws need to be repealed and the federal
government needs to delegate what it ruined and can’t afford to the States.
These would be all unconstitutional departments, agencies and programs that
violate the “enumerated powers”.
US Federal Budget Breakdown - The
Budget Components and Impact on the US Economy by Kimberly Amadeo, 6/25/19.
Revenue - The federal government estimated it would receive $3.645 trillion in revenue. Most of the taxes are paid by you, either through income or payroll taxes:
Spending - The government expects to spend $4.746 trillion. Almost 60% pays for mandated benefits such as Social Security, Medicare, and Medicaid.
Mandatory Spending - The budget estimates mandatory spendingwill be $2.841 trillion in FY 2020. Social Security was by far the biggest expense at $1.102 trillion. Medicare was next at $679 billion, followed by Medicaid at $418 billion.
Discretionary Spending - The discretionary budget will be $1.426 trillion. More than half goes toward military spending, including the Department of Veterans Affairs and other defense-related departments. The rest must pay for all other domestic programs. The largest are Health and Human Services, Education, and Housing and Urban Development.
Military Spending - Military spending was included in the budget. The biggest expense was the Department of Defense base budget at $576 billion. Overseas Contingency Operations were estimated to cost approximately $174 billion. That pays for the war on terror costs triggered by the 9/11 attacks. These include ongoing costs from the war in Iraq and the Afghanistan war.
The Deficit - The budget deficit is estimated at $1.101 trillion. That's the difference between $3.645 trillion in revenue and $4.746 trillion in spending. The article on “Deficit by President” shows which U.S. president racked up the highest expenses. A look at the deficit by year will reveal trends in the country’s annual deficits.
How the Deficit Contributes to the National Debt - Each year, the deficit adds to the U.S. debt. This anticipated tax slows economic growth. It’s like driving a car with the brakes on. It raises interest rates, as investors demand more return. They become hesitant to purchase Treasury notes because they fear not being repaid.
Budget Process - Congress created the budget process. It is supposed to follow these four steps:
Revenue - The federal government estimated it would receive $3.645 trillion in revenue. Most of the taxes are paid by you, either through income or payroll taxes:
Spending - The government expects to spend $4.746 trillion. Almost 60% pays for mandated benefits such as Social Security, Medicare, and Medicaid.
Mandatory Spending - The budget estimates mandatory spendingwill be $2.841 trillion in FY 2020. Social Security was by far the biggest expense at $1.102 trillion. Medicare was next at $679 billion, followed by Medicaid at $418 billion.
Discretionary Spending - The discretionary budget will be $1.426 trillion. More than half goes toward military spending, including the Department of Veterans Affairs and other defense-related departments. The rest must pay for all other domestic programs. The largest are Health and Human Services, Education, and Housing and Urban Development.
Military Spending - Military spending was included in the budget. The biggest expense was the Department of Defense base budget at $576 billion. Overseas Contingency Operations were estimated to cost approximately $174 billion. That pays for the war on terror costs triggered by the 9/11 attacks. These include ongoing costs from the war in Iraq and the Afghanistan war.
The Deficit - The budget deficit is estimated at $1.101 trillion. That's the difference between $3.645 trillion in revenue and $4.746 trillion in spending. The article on “Deficit by President” shows which U.S. president racked up the highest expenses. A look at the deficit by year will reveal trends in the country’s annual deficits.
How the Deficit Contributes to the National Debt - Each year, the deficit adds to the U.S. debt. This anticipated tax slows economic growth. It’s like driving a car with the brakes on. It raises interest rates, as investors demand more return. They become hesitant to purchase Treasury notes because they fear not being repaid.
Budget Process - Congress created the budget process. It is supposed to follow these four steps:
On March 11, 2019, President Donald Trump released his budget request
for fiscal year 2020. Under his proposal,
the federal budget would be a record $4.746 trillion.
The U.S. government
estimates it will
receive $3.645 trillion in revenue. That creates a $1.101 trillion deficit
for October 1, 2019, through September 30, 2020.
To fund the government, Congress must
pass appropriations bills before the fiscal year begins on October 1, 2019. If
Congress does not do so, it creates continuing resolutions to keep government
departments operational. If it doesn't, the government will shut down.
Government spending is in three categories: Mandatory,
which is at $2.841 trillion; Discretionary at $1.426 trillion; and interest on the national debt, $479 billion. This article provides a
detailed breakdown of each. You can also find links to past budgets at the
end.
Income
taxes contribute $1.824 trillion or 50% of total receipts.
Social
Security, Medicare, and other payroll
taxes add
$1.295 trillion or 36%.
Corporate taxes supply $255
billion or 7%.
Excise
taxes and tariffs contribute $157
billion or 4%.
Earnings
from the Federal Reserve's holdings add $49 billion or 2%. Those are interest
payments on the U.S. Treasury debt the Fed acquired through quantitative easing.
Estate
taxes and other miscellaneous revenue supply the remaining 2%.
It's estimated that each taxpayer
works until late April each year to pay for all federal revenue collected.
That's Tax Freedom Day. Can you think of anything else for
which you've worked as hard and long?
Interest on the U.S. debt will be $479 billion. The
U.S. Treasury must pay it to avoid a U.S. debt default. Interest on the approximately $22 trillion
debt is already the fastest growing federal expense.
The remaining $1.4 trillion pays for
everything else. It's called discretionary spending. The U.S. Congress changes this amount each year. It
uses the president's budget as a starting point.
Social Security costs are currently
covered 100% by payroll taxes and interest on investments. Until
2010, there was more coming into the Social Security Trust Fund than being paid out. Thanks to
its investments, the Trust Fund is still running a surplus. But,
the Trust Fund’s Board
estimates that this surplus will be depleted by 2032. Social Security revenue, from payroll
taxes and interest earned, will cover only 77% of the benefits promised to
retirees.
Medicare is already underfunded.
Medicare taxes don't pay for all benefits, so this program relies on general
tax dollars to pay for a portion of it. Medicaid is 100% funded by the
general fund
There is an emergency fund of
$200.1 billion. Most of it goes to Overseas Contingency Operations to pay
for wars. A growing portions is set aside for disaster relief for hurricanes
and wildfires.
Military spending included $212.9
billion for defense-related departments. These include Homeland Security,
the State Department, and Veterans Affairs. These
departments also receive emergency funding of $26.1 billion. Add it up, and the
total U.S. spending on defense is $989 billion.
Now that the economy has
recovered, deficit spending is not necessary. Congress should
create a budget surplus to reduce the national debt burden. But it isn’t
being done because politicians, who slice popular programs, usually find
themselves cut out from the next election.
1.
The Executive Office of
Management and Budget prepares
the budget.
2.
The
president submits it to Congress on or before the first Monday in February.
3.
Congress
responds with spending appropriation bills that go to the president by June 30.
4.
The
president has 10 days to reply.
Since the FY 2010 budget, Congress has only followed the budget
process twice. The hard deadline for budget approval is September 30. If
Congress doesn't approve it by then, the government can shut down. It did just that in 2013, January
2018, and in December 2018. To avoid that, Congress usually passes
continuing resolutions. They keep the government running at spending levels of
the last budget. If the government does shut down, it signals a complete
breakdown in the budget process.
Budgets for 2018-2020
FY Ending- Revenue– Spending– Deficit-
Interest
2020 $3.645 T
$4.746 T $1.101 T $479 B
2019 $3.438 T
$4.529 T $1.091 T $393 B
2018 $3.330 T
$4.109 T $0.779 T $315 B
2017 $3.316 T
$3.982 T $0.666 T $263 B
2016 $3.268 T
$3.853 T $0.585 T $233 B
2015 $3.250 T
$3.688 T $0.438 T $223 B
2014 $3.021 T
$3.506 T $0.485 T $229 B
2013 $2.902 T
$3.455 T $0.679 T $221 B
Comments
Democrats continue to
push for more spending on welfare consumption and no spending on automation productivity.
They think government is a “jobs program”. Government expenses could be cut in
half if we invest in automation and limit what government does. It needs to
invest like a business and automate. Government costs at all levels are $7.5
trillion a year (36% of GDP). Democrats resist building a border, but the
border allows us to automate.
DHS reports that we
have 26 million illegals costing taxpayers $250 billion a year in taxpayer
subsidies. Cutting these benefits and sending millions of illegals back home
would end the border caravan invasions.
Norb Leahy, Dunwoody
GA Tea Party Leader
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