Why Congress Can’t Balance The Budget
United States Budget Dilemma:
- Congress can’t balance the budget even if they shut down the entire government. That’s right; You read it correctly. All the money collected by the federal government is already earmarked for mandatory programs: military; Social Security; Medicare; Medicaid; government employee pensions; interest on the debt; etc. All the money required to run the government is borrowed each year.
- This year Washington will spend $3.8 trillion. However it will collect only $2.5 trillion. That’s a deficit of $1.3 trillion which is an amount larger than Congress appropriates to run the entire government.
- To meet current spending, the government would have to raise taxes 50 percent across the board.
- The U.S. has already lost it’s AAA rating on Treasury debt.
- U.S. debt is 25 percent of world’s GDP.
- Greece – and soon Spain – provides a preview of where the U.S. is headed, and at current spending levels, we’ll get there right soon.
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"Why Congress Can’t Balance The Budget"
