Sunday, July 29, 2012

Federal Revenue\Spending\Deficits as of 2012\07\29

Re(1):  "HOW’S THAT HOPEY-CHANGEY STUFF WORKIN’ OUT FOR YA? (CONT’D): White House projects $1.2T deficit, lower economic growth in 2012. Do you think Obama would have won in 2008 if he’d promised these sorts of economic numbers?", Instapundit, Glenn Reynolds

To All,

The proposed tax increase on the Top 2% will generate about $70 Billion per year if the rich do not adjust their finances to remediate against the increase. Thus, the $70 Billion is a best case scenario. Here is a Federal Revenue/Spending/Deficit chart from FY1996 through June of FY2012 (There are three months left in FY2012 with a best deficit estimate of -$1.2 Trillion):

I could not even freehand the affect of an additional $70 Billion in revenue. The FY1998 surplus was actually $70 Billion - see the green bar for how much that affects things...

This is a joke, and a bad one at that.  Tell me again, President Black Swan, how you have marshaled all your efforts to reducing the deficit.  I see nothing on that front.

The only way to resolve this mess is to cut spending to FY2007 inflation adjusted, and then initiate a wide band tax increase till we close the gap. The tax increase is necessary because we absolutely have to pay for the recent largess. However, I will not freely accept a tax increase unless it is something everyone pays into (no credits and no write-offs) and only after I see real and substantial cuts. I have not seen ANY real and substantial cuts.

And, I can watch you