With the debt ceiling breached, once again, Biden declares another $2.5 billion for Ukraine military assistance. Where is the money supposed to come from? Why is the US government continuing the funding despite the taxpayers demanding, “NO!”. The $1.7 trillion 4100 page Bill passed recently includes the litany of ‘earmarks’ to send money to pet projects of various porky pig pugnacious piglet palettes. But these ‘pretty please give me money’ priorities have been the mainstay for decades.
In 2022 – The Oinker awards included:
*$500,000 to preserve an historic ski jump in New Hampshire.
*$2million for a National Atomic Museum
*$350million to restore south Florida’s ecosystem.
*$4million for the Sheep Experiment Station
*$765,000 to study lobster’s future
*$38 million to fund broadband projects that already have funding
Etc…Etc…Etc… And The King Said To I – Balderdash!
Military Assistance classified as discretionary & mandatory is typically the top of the list. Paying bribes, hiring mercenaries, and the cost of coups is a heady business. Albeit a second set of books. Leaders don’t come without their hand extended – so the US pays for their ‘insertions’ into power. This would include; Brazil’s Lula, Pakistan’s Sharif, Colombia’s President Petro, Iraq, Nepal, Philippines, Kenya, Algeria, Ireland, Italy, Slovenia, Sweden, and many more prime ministers and/or presidents who were replaced in 2022.
COUPS are NOT FREE.
BEFORE Ukraine, the US foreign aide totals ranged in the arena of $40 billion with Afghanistan, Israel and Jordan topping the list. Aide to Ukraine is now pushing the envelop nearing $200 billion, and Congress just keeps finding funds. Not surprising, the democrats are waking up to this wokeness and stating the obvious, “we need more tax revenue”…!
Who to Tax? How to Tax?
The proposal of a flat federal sales tax was considered. The tax would eliminate the IRS and instead shift government funding to a flat 30% on every consumable. In 2021, GDP was measured as $23.3 trillion, but that includes exports. If we use Retail Sales as the measurement for the 30% – that would allocate roughly $2.1Trillion to the feds. The baseline would be our present inflationary cost – plus 30%. Example: In 2017 the average price for a carton of eggs was .85. Today a carton of eggs at Walmart sells for $5.20. Tack an additional 30% on the carton and it now costs $6.76.
By comparison, a flat tax on income at the rate of 10% with zero deductions would generate $1.5 trillion for the government. Other tax revenue generates roughly $700billion. In either instance based on a $5.8 Trillion Biden Budget for 2023 – NEITHER consideration will do anything for a Balanced Budget.
However, the largess difference between a flat income tax and the Retail Sales tax is the cost to the middle and lower classes. A 30% Sales Tax would increase poverty, welfare, health crises, and destroy the housing market as homelessness would exponentiate exponentially! Taxing the poor and middle class into oblivion.
Another differential caveat bears mention: Sales taxes are subject to incremental increases – a flat income tax would not be. The Feds could simply ‘approve’ an increase and suddenly 30% is 35% or 50%. EXAMPLE: California’s sales & use tax was 6% in 2000 – today it is 10.25% an increase of over 70%.
The IRS budget is $14.1 billion. This is NOT about helping American citizens – it is about an infinite Federal Budget without a debt ceiling ever coming into play. Because we would thus be tasked with paying off the inflated interest and principle that has been leveraged by a corrupt government to destroy American citizens wealth. WHILE – redistributing that wealth to – Big Government.
A continuation of inflation would be incentivized by a Sales Tax because the value of goods would rise continuously and as those rises hit 8% a year, that would create more money in the government coffers – and LESS for The Peasants as costs become ‘unsustainable’!
This concept tax was proposed by Kevin McCarthy with the approval of Republican’s & Rhino’s. It was certainly not ‘written’ by McCarthy, it is far beyond his acumen and likely required some funnymen in black. To add insult to injury, Rep Buddy Carter argues, “If you don’t want to pay the tax don’t buy it, it’s as simple as that.” But then Buddy Carter’s net worth is over $66.5 million – so the price of a gallon of milk or loaf of bread doesn’t phase him in the slightest!
The Problem with giving a bunch of lawyers in Congress who have no understanding of finance, numbers, or accounting, the ability to push financial reforms is like having your barber represent you at a murder trial…
It has been determined that the CoVid “pandemic” cost the globe $16 trillion, the brunt born by the US. But the continued debt is the true death march with Interest payments consuming tax revenues. Interest payments alone are expected to rise to over $8 trillion within the next decade.
The ONLY means to pull down the Budget is to eliminate entire agencies. According to USA.gov there are 137 independent agencies within the Federal government with 268 units within the Cabinet. As of 2016 the Federal Register claimed there were 440 agencies and sub-agencies in the Federal Government. However, there is NO LIST. The Government does not account for the agencies and has no idea the actual number… Accounting is NOT their strong point.
Draining the Swamp would entail the elimination of the vast majority of these gluttonous overrides! Or simply – starting over. While the likes of Robert Reich thinks that debt is meaningless, it bears noting he is an attorney, NOT a financial expert or economist. Somehow individual debt is considered a drag on the economy, but oddly government is no big deal… The Legal Strategy? SPEND MORE!