Tuesday, July 19

            Basic United States economic facts:

1)      U.S. spending has not increased in three years;

2)     However this year, spending will be 3.8 trillion, while revenue will be 2.2 trillion, a 1.6 trillion deficit;

3)     Making the total national debt of 15 trillion by September;

4)     43% of federal spending goes to Medicare/Medicaid(hard to reform due to health costs) and Social Security(easier to reform and make solvent with adjustment of consumer index), 12% for misc. social safety nets, 7% for federal employee benefits, 20 for Defense, 6% for debt interest and so there is currently only 12% to do everything else; and

5)     There are 1 trillion is tax credits and deductions each year which makes the tax code so complicated, so there is really no need to raise tax rates.