EconomicPolicyJournal.com: Business Insider: Taxes Need to Be Raised: Business Insider , co-founder, CEO and Editor-In Chief, Henry Blodget loves government so much that he wants to take more of your money and ...
If you look at where we were financially as far as our Federal Government, goes we were spending at around. 20% of our GDP or gross domestic product on the Federal Government and our tax revenue was at around 20%. As well and because of that both the Office of Management and Budget and the Congressional Budget Office. Could make predictions that we would have budget surplus's for ten years down the line, those trillions of dollars. In projected budget surplus's were gone by late 2001, because what happen we had a short recession of 2001-02. 9/11 hits and the stock market and economy take a big hit as a result, the War in Afghanistan thats never been paid for. At least the Obama Administration put the War in Afghanistan on budget so it no longer goes to the national debt anymore. We have two 1T$ tax cuts from President Bush and the Republican Congress's in 2001 and 2003 that were unpaid for. The War in Iraq that started in 2003 unpaid for and another 1T$, Medicare Advantage of 2003 now 700B$ unpaid for. Again on the national debt, the Great Recession of 2008 and 2009 and all of the money that was spent in. 2009 and 2010 to address the Great Recession all of the expenses put on the national debt card.
Go from 2000 to 2012 where we are of course now and we are no longer taxing and spending at around 20%. But we are spending now 20% more as far as GDP and we are collecting 20% less in taxes and thats how you. Go from budget surplus's projected in the trillions of dollars where you are actually paying down debt to a situation. Where you are looking at budget deficits in the trillions of dollars, which means we need to reserve that, we have. To get out of Afghanistan and Iraq and get back to 2000 spending levels in defense at least in the short term. But I would go further then that, Medicare Advantage has to at least be paid for if not reformed, which is what. Happened in the 2010 Affordable Care Act, we have to reform entitlements and the broader safety net. And have more people working in this country and less people collecting from public assistance but paying into it. Instead so it becomes a real social insurance system rather then a way of life where Americans use it to survive. And pay their bills indefinitely but just collect for short periods of time but then going back to work.
But that fixes half of the problem we also need to close the hole in our revenue as we are cutting our costs. In government and require that people who can afford to pay more in taxes right now, which is a very tiny. Percentage of the country actually pay more, we don't have to start at 250K$ and could go up to 500K$. With tax reform as part of that package as well but we need to spend about 20% less then we are now and increase. Our revenue by around 20% which would go towards deficit reduction if we are going to get our debt and deficit under control. We've simply over promised as a government the amount of services that we can afford to provide for our people. And the people simply are demanding more in public services then they are willing to pay for and we have to close that gap.