I’m sure you have seen and heard the parade of public officials, especially the president, predicting doom and gloom if the $85B budget “sequester” begins on March 1. Both sides of the aisle apparently want us to forget that this is a problem of Washington’s own making – spending more than they have to spend and wanting taxpayers to kick in the difference.
Here are some pertinent facts of sequestration you will seldom see or hear:
The debate between the Republicans and Democrats always centers on less spending versus more tax revenues - which is the culprit? If “Debt” is a symptom, “deficit spending” is the disease.
According to the Federal Budget Detail for Fiscal Year 2013, the tax revenue has gone up every year in the Obama presidency. From 2009, the year Obama took the oath of office, revenue was $2.015T. This year’s estimated revenue is $2.9T, an increase of 37.86% or 7.6% per year in revenue collected from taxpayers.
How many taxpayers do you think got that kind of raise in each of the last five years?
The spending, on the other hand in your pocket, has gone from $3.5177T to $3.8034T for an additional 8.12% increase over and above the 37.86% increase in revenue – a total increase in spending of 46%. Deficit spending during this period will total $6.2342T.
It’s a spending problem my friends, not a lack of revenue!
Also, debt is projected to grow by another $5T over the next five years according to the U.S. Federal FY13 Budget. With sequestration, the debt will still grow by $4.4T over those five years. The debt will be over $21T the year after Obama leaves office. Where are your cuts, Mr. President?
The government spent $1.793T just on Medicare, Social Security, Medicaid and interest on the nation debt, which will still be climbing after the sequester. These four items alone account for 50.7% of the budget, but are off limits for the sequester cuts.
The government spent $3.538T in the fiscal year that ended in September 2012. So $85 billion is 2.4% of the federal budget. However, only 1.2% will be cut this year because only $44B will actually be cut, because outlays often lag the budget by months or years, and it will be implemented over months, not in one day.
Put in its proper perspective, the $85B dollars is equivalent to only 9 days of government spending, at almost $10B a day, of which $4B is borrowed – each day, folks, and the proponents of more government spending are crying Armageddon for more services?
This year’s spending, after the Sequestration, will still be $3.553T compared to 3.538T last year. This is due to the federal government’s type of baseline budgeting.
Baselining federal budgets, assuming they even had one, in simple terms, if an agency’s budget is $100, and they are expecting an increase of $10 next year, but they only get $8, politicians characterize that as a $2.00 cut in spending.
Concerning the entire $1.2 trillion in “cuts” due to the sequester, it must be understood that they are not really cuts at all. They are really a lowering of the projected increase in federal spending going forward. The CBO cuts through the fog. “For the 2014-2023 period, deficits in CBO’s baseline projections total $7.0 trillion.
How does a cut of only $44B in an a $16T economy possibly be a cause of another recession as predicted by those who wish to keep deficit spending. Even after the sequester the deficit spending will still be $845B and the government will still be borrowing 40 cents on every dollar it spends.
If the economy is so dire, why did the government approve $60.2B in additional deficit spending for Hurricane Sandy relief – for devastating damage along the East coast?
Billions went to FBI salaries, $2B for road construction across the country, not just the East Coast, funding for Head Start, $4M for the Kennedy Space Center in Florida, $50M for the National Park Service, $16B for 47 states to underwrite past and future events from 2011 through 2013.
So, even if the entire $85B in sequester cuts went into effect this year, the cut in spending has now been reduced to $24.8B and the sequester was signed just yesterday
The president has already received his “balanced” approach to deficit reduction, when the taxes for the wealthy were raised $630B over the next 10 years during the fiscal cliff fiasco in January. Now it’s the president’s turn to cut some spending before any more tax increases are considered?
Why with this so-called impending sequester disaster facing our country, did Congress take a week’s vacation and President Obama went to play golf with Tiger Woods. What a crisis management team.
And just think, the continuing resolution/debt ceiling debate will start once again at the end of this month. However, American people deserve just as much of the blame as the government. The voters are the ones who elected these people in the first place!