the surplus was a smoke and mirrors effect. all they did was borrowed more money than they spent and called it a surplus. This country has been running in the red since 1938, and once 1986 rolled around, the interest on the debt would not be possible to cover even of all money made (country-wide) were to be taxed at 100%.
None of the money paid into the federal "income" tax has ever been put toward the principal of the loans, it only goes toward the interest and will NEVER be paid off.
You really need to go past the headlines to understand the data you have pointed out. As always, there is more to the situation than can be summed up into a one sentence sound bite.It is interesting to correlate tax policy with the national debt. When tax rates on high incomes were substantial, we were able to radically reduce the debt. When taxes on the wealthy were slashed (Reagan, Bush II), the debt skyrocketed.
You really need to go past the headlines to understand the data you have pointed out. As always, there is more to the situation than can be summed up into a one sentence sound bite ... And while the revenues did not increase, the $350B/year drag due to the war made things a lot worse.
The article cites Bush for using the Clinton surplus for tax breaks instead of deficit reduction with the intent of improving his chances in the 1994 election.
I wasnt aware that Bush ran in 1994 (a non-election year)
Since you are hammering the other poster for a clear typo, I think you are fair game to be hammered for your factual errors. You statement that Bush did not run in 1994 is factually incorrect. You statement the 1994 was a non-election year is also factually incorrect. Bush did run in 1994, which was an election year.I wasnt aware that Bush ran in 1994 (a non-election year)
You really need to go past the headlines to understand the data you have pointed out. As always, there is more to the situation than can be summed up into a one sentence sound bite.
The debt skyrocketed under Reagan/Bush-I because defense spending went through the roof. Cutting taxes initially decreased revenue but actually increased it quite a bit a couple of years down the road due to increase in economy but not nearly enough to make up for the spending increase.
The bottom line is that in a perfect reversal of the situation, while Clinton was able to avoid any of the down sides of a tax increase due to the timing of unrelated factors, Bush failed to realize any of the benefits of a tax cut due to the timing of unrelated factors.
Once again people, it's not a revenue problem, it's a spending problem. And if the Bush tax cuts cost so much money, please explain this:
Revenue collections hit record high in April - Business - Personal finance - Tax Tactics - msnbc.com
"For the first seven months of this budget year, which began Oct. 1, revenue collections and government spending are at all-time highs."
"The Congressional Budget Office said that it now expects the deficit for all of 2007 to total between $150 billion and $200 billion. That would be a significant improvement from last year
The least you could do is use current factual data.
You cite a 2007 mid-year estimate: the Federal deficit for 2007 was $501 billion, which shot up to over $1 trillion in 2008.
You can't have a spending problem without a revenue problem. It's not one or the other, it's both. They need to be balanced. Which does not preclude borrowing.
The least you could do is use current factual data.
You cite a 2007 mid-year estimate: the Federal deficit for 2007 was $501 billion, which shot up to over $1 trillion in 2008.
You can't have a spending problem without a revenue problem. It's not one or the other, it's both. They need to be balanced. Which does not preclude borrowing.
My point in using that article was to dismiss this talk of tax cuts being one of the reasons we are running such high deficits. That is complete nonsense and that's why I posted it. I also happened to quote a line from the article and bolded it for emphasis about spending being too high. You could post all the stats you want about spending...I AGREE!!!!
The fact is, after the 2003 Bush tax cuts, revenue to the general treasury soared to RECORD LEVELS. Period...end of story.
So once again, we have a SPENDING PROBLEM, not a revenue problem. Why is this so hard to grasp?
It's only a spending problem when you don't have revenue. If there was more revenue, there wouldn't be a spending problem. If there was less spending, there wouldn't be a revenue problem. It is one and the same thing. Why is that so hard to grasp?
Cutting taxes (revenue) does not generate revenue (taxes). It simply reduces revenue. this has been debunked repeatedly. Revenue increases that are supposedly the result of tax cuts have actually been the result of massive deficit spending. The technical name for this is "Reaganomics", which was - until Obama got elected - the Republican mantra.
Total debt 1979 (before Reagan): $826 billion
Total debt 1988 (Reagan's last year): $2.857 trillion.
Total increase in debt: 346%
Total debt 1999 (before Bush): $5.656 trillion
Total debt 2008 (Bush's last year): $10.024 trillion.
Total increase in debt: 177%
source: US Treasury
So-called "fiscal conservatives" point to tax cuts and say they increased revenue, ignoring the deficit spending that actually generated the tax revenue. They ignored spending deficits until Obama got elected. And they're still demanding more tax cuts.
Reagan Policies Gave Green Light to Red Ink
"The fiscal shift in the Reagan years was staggering. In January 1981, when Reagan declared the federal budget to be "out of control," the deficit had reached almost $74 billion, the federal debt $930 billion. Within two years, the deficit was $208 billion. The debt by 1988 totaled $2.6 trillion. In those eight years, the United States moved from being the world's largest international creditor to the largest debtor nation."
http://www.cbo.gov/ftpdocs/108xx/doc10871/HistoricalTables.pdf
2007 was 161 billion
2008 was 459 billion
and 2009 was 1.414 trillion (due to the stimulus)
2010 was 1.294
obama wants 1.6 trillion for 2011
bushes total for 8 years is @ 2-2.5 trillion, too much
i am counting the stimulus on obama
obama for less then 3 years is 3+trillion
U.S. Federal Deficits, Presidents, and Congress
has some interesting historical info
Both links support my data, which is also available at US Treasury.
You are reading the CBO tables wrong. Look at the "on-budget" column for deficit spending. Also, you can't really blame Obama for 2009, which was Bush's budget.
It's only a spending problem when you don't have revenue. If there was more revenue, there wouldn't be a spending problem. If there was less spending, there wouldn't be a revenue problem. It is one and the same thing. Why is that so hard to grasp?
come on man, there are too many rich people out there, if they get to keep anything its a revenue problemAre you serious?? So if a family making $75K a year but are spending $100k a year, that's a revenue problem??? I guess you can say it is in some warped way of thinking...or is it the entitlement thinking? Maybe you believe the gov't is entitled to more of our money to cover their ridiculous spending.
I'm done with this circular argument. I'd like to know at what point do we have a spending problem in your view, since that's obviously not a problem today. And at what point have we been taxed enough to satisfy this spending binge?
Good grief.
...You can't have a spending problem without a revenue problem. It's not one or the other, it's both. They need to be balanced. Which does not preclude borrowing.
Are you serious?? So if a family making $75K a year but are spending $100k a year, that's a revenue problem??? I guess you can say it is in some warped way of thinking...
or is it the entitlement thinking? Maybe you believe the gov't is entitled to more of our money to cover their ridiculous spending.
I'm done with this circular argument. I'd like to know at what point do we have a spending problem in your view, since that's obviously not a problem today. And at what point have we been taxed enough to satisfy this spending binge?
Good grief.
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