You want to know why all the projects show that over the next 10 years we will be running deficits that are unprecedented in scale? This may astound you, but did you know that Social Security and Medicare represent 34% of our budget and that Medicare is already running in the red and that Social Security will run in the red by 2015? That means Medicare ADDs to our deficits, when as recently as 2006-7, it ran a surplus, lowering our deficits. Social Security is even more massive and will run a deficit by 2015.
Would it amaze you to know that another 37% of our budget is for the military, the wars in Iraq and Afghanistan, and for spending on veterans when they come home, all three considered sacred cows that no Party wants to make cuts against? So that is fuly 71% of the budget that neither party wants to make cuts from.
Here's the truly astounding part though. This year's budget is expected to be around $3.7 trillion. With tax revenues expected to be about $2.2 trillion, that means we will run a $1.5 trillion deficit. Well, 71% of $3.7 trillion equals $2.6 trillion. So we will spend $2.6 trillion on social security, Medicare, the military, on the two wars, and on veterans affairs, all of which are the untouchables. So even if the US government was willing to CUT ALL OTHER SPENDING, we'd still be running a deficit of $400B ($2.6T spending less $2.2T tax revenues).
This is why I keep saying that unless Democrats are willing to compromise on Social Security and the GOP is willing to compromise on Health Care, and both parties are willing to make drastic cuts to the military, including stopping the two wars, then we will NEVER get control of these deficits.
Actuallly, there is one other option. We could increase the tax rate by 50% across the board, but we all know the GOP would never allow tax increases.
References:
whitehouse.gov
upload.wikimedia.org
upload.wikimedia.org
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