The Federal Budget – What Can Be Done?
Paul Ryan was widely praised by many Democrat Pundits, including Bill Clinton, on his work to ensure the survival of Medicare. Until now. As Mitt Romney’s running mate, he is now the Devil incarnate. The real problems with Medicare are fraud and Obamacare. To make the numbers even remotely palatable there is a large transfer from Medicare to Obamacare. Different accounts vary because Obamacare is so long and complicated, no one knows how it will work or how much it will cost. Even government agencies admit that the 10 year estimated deficit has tripled from $900 Billion to over $2.7 Trillion just for that one program. The ‘bad’ news is that the “Medicare funding” to transfer doesn’t exist. Like Social Security, the Medicare funding from taxes is placed in the General Fund and spent immediately.
Under Obama the Federal debt has risen from about $10 Trillion to $16 Trillion and is expected to exceed $16.35 Trillion by the end of this year. The Dems are fighting to maintain all the ‘Entitlements’ against the Economic Realists like Paul Ryan that are trying to prevent economic collapse. The facts are the Federal Government will take in $2.5 Trillion, but spends $3.8 T leaving a deficit of $1.3 Trillion. There are two forms of spending – Mandatory: Interest and all the Entitlements, and Discretionary: Security- the military, CIA, FBI etc= $868 Billion, and Non-security – the rest of the Federal Govt = $450 Billion, for a total of $1.319 Trillion. The current interest is artificially low: ‘only’ $225 Billion. The real problem is the “Entitlements”: Social Security $773 Billion, Medicare $478 Billion, Medicaid $255 Billion, and “Others” that includes unemployment and many Welfare programs $711 Billion, for a total of about $2.5 Trillion. See: http://www.youtube-nocookie.com/embed/EW5IdwltaAc?rel=0
This level of spending can’t be sustained, even taxing the “Rich” at Obama’s desired rates won’t make a dent in the deficit, but will drive capital from US markets, and they know it. That is Election Year Class-Warfare Rhetoric. They intend to keep on “borrowing” (really creating ‘debt-money’ out of nothing). Our Federal Debt exceeds our entire GDP now, in fact our Debt is 1/4 of the World’s GDP and will increase at least $10 trillion in the next ten years at current rates. With the added debts of Obamacare and an interest-rate that must be increased to attract investors could easily double that, or more, if unchecked.
We must do something quickly. 1. No more entitlements for non-citizens. 2. If we have to be drug tested to earn the taxes, recipients should be drug tested to receive funds. 3. 99 weeks of ‘unemployment’ is plain crazy. 4. Stop putting people on SS Disability because they ‘can’t find a job’. 5. Stop IRS “earned Income tax credits” rebates. If their credits exceed what they paid in, then they can carry-over to the next year. And stop the fraud! 6. Investigate and prosecute Medicare and Medicaid fraud, it is rampant. 7. ‘Means Test’ for Social Security over $1000/ month. Why should people that get large Government pensions get big SS pay-out, too? Admit SS is broke, was a Ponzi Scam, and Congress spent the money since the 1960s. 8. Welfare recipients should be dis-enfranchised for 3 times the length of time they are on welfare, up to 5 years after they become self-supporting. 9. Stop government support for chosen industries with taxpayer money. They can give tax breaks for investors, such as tax-free dividends for 3 or 5 years, or even tax breaks on capital gains. This rarely reduces tax collections by much because new technology start-ups rarely pay much dividends until well established. Let investors take the risk voluntarily, not the taxpayers money risked on Crony Capitalism and Agenda driven projects.
These are just a few things that could be done immediately. The Liberal Democrats, especially in the leadership, refuse to recognize there is a problem, much less identify it correctly. So, vote out the Obamunists that have hijacked our Democrat Party, we must try to rebuild a Pro-American Democrat Party like we used to have. And vote out the RINOs too! The old Beltway Buffoon Repubs are not the answer, we need new leadership in both parties, or the Union is doomed! In fact, it may already be too late. With International Socialists running the Democrat Party, our choice now is Republican or Communist.
