A satirical short film taking a look at the national debt and how it applies to just one family.
Make Your Own Spending Chart at Federal Spending Charts
The tool allows the user to chart federal outlays 1970-2017 for chosen departments and agencies within departments. All data is OMB converted to 2017$.
The Trust Fund Myth
People tend to think of their Social Security benefits as an actual account, in their name, which contains cash or investments. In reality, the Social Security trust fund contains nothing more than IOUs that have no value beyond a promise to impose higher taxes on future workers. The annual surpluses that many thought were being used to build up a reserve for Baby Boomers have been spent on other government programs or to reduce government debt.
Social Security is not like a savings account in which payroll taxes are saved for retirement. Social Security is a pay-as-you-go system, meaning that the taxes paid by today’s workers are immediately sent out to pay the benefits of today’s retirees.
The problem with this system is that it only functions when there are a lot of workers paying payroll taxes and just a few retired people getting benefits. This is no longer the case. Our senior population is growing much faster than our working population and this means there are fewer and fewer workers supporting more and more retirees.
No Cash Is Being Saved . . .
Read more from the US Chamber of Commerce
Pin a picture at https://www.pinterest.com/mkegop/
–SNIP– But if you are an anti-tax conservative who sincerely believes that you have to cut spending and not “feed the beast” with more revenues, then one approach on spending cuts for the super committee to consider is the simple and creative “Penny Plan” introduced by Rep. Connie Mack, R-Fla.
Mr. Mack’s bill, H.R. 1848, would cut one penny out of every dollar actually spent by the federal government from year to year for the next six years, from FY 2012-FY 2017.
Beginning in FY 2018, there would be a budget cap of 18 percent of GDP (the average federal revenue as a percentage of GDP over the past 30 years). And by FY 2019, America would finally have a balanced budget — that is, assuming revenues naturally increase from the current 14.8 percent of GDP to 18 percent of GDP by 2019, after which the budget would be in surplus.
There is an automatic spending cut “trigger” under Mack’s plan — one he came up with well before the trigger used in the recently passed national debt ceiling bill.
If Congress failed to enact a budget implementing the 1 percent actual spending cut required under Mack’s measure, then there would be automatic, across-the-board actual cuts in all federal programs to meet the 1 percent reduction, and that means all: in defense, Social Security, Medicare, Food Stamps, defense, and national security spending. Everything.
Read more by Lanny Davis at NewsMax.com, 2011