Budget Breakdown

            Anyone suffering through a Congressional budget debate on C-SPAN has had their sensibilities assaulted with lies. Polite people and lawyers call these mendacity. Here are some hard facts about the Federal budget.

            Last year, 63% of money was spent without a Congressional vote. This autopilot spending went for past obligations made by past Congresses. Few legislators have the courage to make tough choices for future spending, much less renege on such past promises.

            Our social safety net sucks up quite a bit of this money. In 1960, 9.5% of the federal budget went to health care. Currently, 25% of the federal budget goes to health care. The CBO estimates that in 10 years, healthcare costs will be 33% of the federal budget. We cannot control spending without controlling healthcare costs.

            So if around two thirds of our Congressional budget is on autopilot, why can't we just fire some of the people on those fat Federal payrolls and reduce our spending? The difference between what our government owes in what our government brings in is called a deficit. Our national deficit is currently over $1 trillion. The combined wages and benefits of all federal employees is $435 billion. We couldn’t put a dent in our $16 trillion debt by firing everybody in the Government, including the military. Rather than bankrolling a bunch of employees, the numbers indicate that most of the money Washington takes him if sent back out in benefits, contracts, and assistance to States.

            Military spending accounts for about 20% of the federal budget, around $700 billion. This amount is more than the combined spending of the next 17 largest military budgets. Feel safer yet? Do you want to continue to pay for us to be the worlds policeman?

            Look at the scope of these appropriations. Congress tells the Defense Department they have to have 11 aircraft carriers. Bear in mind that other nations have one. If you have an aircraft carrier, it has to be replaced every five years and this costs $11 billion. Do we have to have 11? $11 billion would replace 750,000 shoulder, knee and hip joints under Medicare. This is the scope of decisions made at this level.

            An additional 20% of the federal budget goes to Social Security. So three areas account for 65% of the Federal budget. The rest of the budget is for everything else. What spending would you advocate cutting, and what do you base your decision on? Sorry, Big Bird.

            The interest on the federal debt deserves a mention. The federal debt was created by Alexander Hamilton, who convinced the States to consolidate their debts into a single Federal debt. Last year the interest on the Federal debt was $220 billion. This is larger than the combined budgets of Commerce, Education, Homeland Security, Interior, Justice, and the Federal courts combined. Last year, 6% of Federal spending went towards interest on the national debt. Bear in mind that the rates of other nations charged to buy our debt is at historic lows. If the international climate changes, the rates could become much higher.

            A budget breakdown would be incomplete without mentioning revenue or taxes. The hard facts are that taxes on the middle class, the primary source of Federal revenue, have been declining for the last 30 years. This hard fact may come as a surprise to some in the middle class. In 1979 before the Reagan tax reforms, middle-class tax rates were around 19%. In 2007, before the Crash, middle-class tax rates were 14%. They have continued to decline since then.

            So where are the decisions made which divide up our $3.7 trillion national budget? Are they made in Congressional subcommittees or before the cameras of C-SPAN? Nay, Nay! They made in private meetings with lobbyists. The hard facts are that lobbyists keep legislators in their jobs, so lobbyists greatly influence how our national budget is spent. In 2011, Treasury took in $1.3 trillion in taxes. Loopholes influenced by lobbyists accounted for an additional $1.1 trillion in lost revenue.

            It is the role and responsibility of the free press and informed citizens to question the decisions made by legislators, particularly involving health care and defense. Our conversations should be less about individual beliefs and ideology and more about benefits to all Americans. I encourage you, an informed public, to make your voices heard this election day. Remember, Presidents can't spend money or create debt. That is the province of Congress. Bear this in mind when you place your hope and trust.

     
       We are on the brink of an economic cliff in December. Since Congress didn’t have the balls to make tough choices, mandatory budget cuts will go into effect, gutting 5.1% of GDP in one year. Such cuts during a struggling recovery are economic suicide. Our economic challenges are all solvable, if legislators work together to cut a deal benefiting all of us. We need a balanced bipartisan solutions. Legislators actually have to govern, not be ideological purists. If you hate a broken Congress and broken System, don’t put one in place with your vote. Current voting trends indicate an 80-90% partisan ticket. You can’t have it both ways, winning an election for “your side” and having a Congress that works. I voted for both Democrats and Republicans this election, depending on who is willing to work together. I recommend you do the same. Our economic suicide is in your hands and the message you send.