The US needs to cut spending on entitlements

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cassowary
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The US needs to cut spending on entitlements

Post by cassowary » Mon May 13, 2019 12:20 am

Tax revenue keeps rising ... WSJ
You wouldn’t know it from the press coverage, but there’s some modest good news about the federal budget. The deficit is rising, but not as much as feared because tax revenues are increasing due to faster economic growth.

The Congressional Budget Office reports in its April budget review that revenues rose 2% to $2.041 trillion in the first seven months of fiscal 2019 from a year ago. Payroll tax revenue rose 4.7% due in part to rising employment and wages.

Individual income taxes were essentially flat in the wake of the tax cut, but corporate income taxes were down only $7 billion for the first seven months to $114 billion despite the cut in the corporate tax rate to 21% from 35% in the 2017 tax reform. April was the deadline for final 2018 tax payments for most corporations, and tax revenue from higher corporate profits partly offset the lower rate.

Overall revenues increased despite a sharp decline in payments to the Treasury from the Federal Reserve of $15 billion, or 34%. The decline is due to higher short-term interest rates that lead the Fed to pay banks more interest on their reserves. Watch this account closely in the future if the Fed’s reserve payments become a net Treasury drain. This is one cost of the Fed maintaining a very large balance sheet.

So why has the federal deficit increased by $145 billion this fiscal year to $531 billion? Because federal spending continued to rise rapidly—7% in the first seven months to $2.571 trillion. That’s $178 billion more than in the same period a year ago. As you’d expect, Social Security benefit payouts rose 6%, Medicare outlays 5% and Medicaid 4%. Anyone who thinks federal deficits and debt can be contained without entitlement reform probably still believes in the Russian collusion story.

Defense spending rose 10%, or $33 billion, in the first seven months, as intended by Congress and the White House after eight years of neglect under Barack Obama. The higher outlays went for much-needed operations and maintenance and R&D. Outlays for the Pentagon are still only about 3.2% of GDP, which is close to the historic low since World War II.

Interest payments on federal debt held by the public rose 13% to $234 billion, due to higher short-term interest rates and more debt. The Fed’s zero-rate policy disguised the size of the debt’s budget burden during the Obama years, but it is now coming due.

The media blame deficits on tax reform, but the facts show the main culprit is spending. No one in the political class wants to talk about entitlements but that’s where the money is.
The tax cut paid for itself. But spending keeps rising. So we need to cut entitlements - Social Security, Medicaid, Medicare, unemployment benefits, food stamps etc.
The Imp :D

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Sertorio
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Re: The US needs to cut spending on entitlements

Post by Sertorio » Mon May 13, 2019 1:07 am

cassowary wrote:
Mon May 13, 2019 12:20 am
Tax revenue keeps rising ... WSJ
You wouldn’t know it from the press coverage, but there’s some modest good news about the federal budget. The deficit is rising, but not as much as feared because tax revenues are increasing due to faster economic growth.

The Congressional Budget Office reports in its April budget review that revenues rose 2% to $2.041 trillion in the first seven months of fiscal 2019 from a year ago. Payroll tax revenue rose 4.7% due in part to rising employment and wages.

Individual income taxes were essentially flat in the wake of the tax cut, but corporate income taxes were down only $7 billion for the first seven months to $114 billion despite the cut in the corporate tax rate to 21% from 35% in the 2017 tax reform. April was the deadline for final 2018 tax payments for most corporations, and tax revenue from higher corporate profits partly offset the lower rate.

Overall revenues increased despite a sharp decline in payments to the Treasury from the Federal Reserve of $15 billion, or 34%. The decline is due to higher short-term interest rates that lead the Fed to pay banks more interest on their reserves. Watch this account closely in the future if the Fed’s reserve payments become a net Treasury drain. This is one cost of the Fed maintaining a very large balance sheet.

So why has the federal deficit increased by $145 billion this fiscal year to $531 billion? Because federal spending continued to rise rapidly—7% in the first seven months to $2.571 trillion. That’s $178 billion more than in the same period a year ago. As you’d expect, Social Security benefit payouts rose 6%, Medicare outlays 5% and Medicaid 4%. Anyone who thinks federal deficits and debt can be contained without entitlement reform probably still believes in the Russian collusion story.

Defense spending rose 10%, or $33 billion, in the first seven months, as intended by Congress and the White House after eight years of neglect under Barack Obama. The higher outlays went for much-needed operations and maintenance and R&D. Outlays for the Pentagon are still only about 3.2% of GDP, which is close to the historic low since World War II.

Interest payments on federal debt held by the public rose 13% to $234 billion, due to higher short-term interest rates and more debt. The Fed’s zero-rate policy disguised the size of the debt’s budget burden during the Obama years, but it is now coming due.

The media blame deficits on tax reform, but the facts show the main culprit is spending. No one in the political class wants to talk about entitlements but that’s where the money is.
The tax cut paid for itself. But spending keeps rising. So we need to cut entitlements - Social Security, Medicaid, Medicare, unemployment benefits, food stamps etc.
Living in Singapore, entitlements in the US are none of your business. You neither pay for them nor benefit from them.

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Doc
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Re: The US needs to cut spending on entitlements

Post by Doc » Mon May 13, 2019 3:06 am

Sertorio wrote:
Mon May 13, 2019 1:07 am
cassowary wrote:
Mon May 13, 2019 12:20 am
Tax revenue keeps rising ... WSJ
You wouldn’t know it from the press coverage, but there’s some modest good news about the federal budget. The deficit is rising, but not as much as feared because tax revenues are increasing due to faster economic growth.

The Congressional Budget Office reports in its April budget review that revenues rose 2% to $2.041 trillion in the first seven months of fiscal 2019 from a year ago. Payroll tax revenue rose 4.7% due in part to rising employment and wages.

Individual income taxes were essentially flat in the wake of the tax cut, but corporate income taxes were down only $7 billion for the first seven months to $114 billion despite the cut in the corporate tax rate to 21% from 35% in the 2017 tax reform. April was the deadline for final 2018 tax payments for most corporations, and tax revenue from higher corporate profits partly offset the lower rate.

Overall revenues increased despite a sharp decline in payments to the Treasury from the Federal Reserve of $15 billion, or 34%. The decline is due to higher short-term interest rates that lead the Fed to pay banks more interest on their reserves. Watch this account closely in the future if the Fed’s reserve payments become a net Treasury drain. This is one cost of the Fed maintaining a very large balance sheet.

So why has the federal deficit increased by $145 billion this fiscal year to $531 billion? Because federal spending continued to rise rapidly—7% in the first seven months to $2.571 trillion. That’s $178 billion more than in the same period a year ago. As you’d expect, Social Security benefit payouts rose 6%, Medicare outlays 5% and Medicaid 4%. Anyone who thinks federal deficits and debt can be contained without entitlement reform probably still believes in the Russian collusion story.

Defense spending rose 10%, or $33 billion, in the first seven months, as intended by Congress and the White House after eight years of neglect under Barack Obama. The higher outlays went for much-needed operations and maintenance and R&D. Outlays for the Pentagon are still only about 3.2% of GDP, which is close to the historic low since World War II.

Interest payments on federal debt held by the public rose 13% to $234 billion, due to higher short-term interest rates and more debt. The Fed’s zero-rate policy disguised the size of the debt’s budget burden during the Obama years, but it is now coming due.

The media blame deficits on tax reform, but the facts show the main culprit is spending. No one in the political class wants to talk about entitlements but that’s where the money is.
The tax cut paid for itself. But spending keeps rising. So we need to cut entitlements - Social Security, Medicaid, Medicare, unemployment benefits, food stamps etc.
Living in Singapore, entitlements in the US are none of your business. You neither pay for them nor benefit from them.
BY that standard it is none of yours either. Entitlements have become a huge part of the budget. Most of them cannot be reduced without a change in the law as they are non discretionary entitlements.
“"I fancied myself as some kind of god....It is a sort of disease when you consider yourself some kind of god, the creator of everything, but I feel comfortable about it now since I began to live it out.” -- George Soros

Jim the Moron
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Re: The US needs to cut spending on entitlements

Post by Jim the Moron » Mon May 13, 2019 3:24 am

Doc wrote:
Mon May 13, 2019 3:06 am
Sertorio wrote:
Mon May 13, 2019 1:07 am
cassowary wrote:
Mon May 13, 2019 12:20 am
Tax revenue keeps rising ... WSJ
You wouldn’t know it from the press coverage, but there’s some modest good news about the federal budget. The deficit is rising, but not as much as feared because tax revenues are increasing due to faster economic growth.

The Congressional Budget Office reports in its April budget review that revenues rose 2% to $2.041 trillion in the first seven months of fiscal 2019 from a year ago. Payroll tax revenue rose 4.7% due in part to rising employment and wages.

Individual income taxes were essentially flat in the wake of the tax cut, but corporate income taxes were down only $7 billion for the first seven months to $114 billion despite the cut in the corporate tax rate to 21% from 35% in the 2017 tax reform. April was the deadline for final 2018 tax payments for most corporations, and tax revenue from higher corporate profits partly offset the lower rate.

Overall revenues increased despite a sharp decline in payments to the Treasury from the Federal Reserve of $15 billion, or 34%. The decline is due to higher short-term interest rates that lead the Fed to pay banks more interest on their reserves. Watch this account closely in the future if the Fed’s reserve payments become a net Treasury drain. This is one cost of the Fed maintaining a very large balance sheet.

So why has the federal deficit increased by $145 billion this fiscal year to $531 billion? Because federal spending continued to rise rapidly—7% in the first seven months to $2.571 trillion. That’s $178 billion more than in the same period a year ago. As you’d expect, Social Security benefit payouts rose 6%, Medicare outlays 5% and Medicaid 4%. Anyone who thinks federal deficits and debt can be contained without entitlement reform probably still believes in the Russian collusion story.

Defense spending rose 10%, or $33 billion, in the first seven months, as intended by Congress and the White House after eight years of neglect under Barack Obama. The higher outlays went for much-needed operations and maintenance and R&D. Outlays for the Pentagon are still only about 3.2% of GDP, which is close to the historic low since World War II.

Interest payments on federal debt held by the public rose 13% to $234 billion, due to higher short-term interest rates and more debt. The Fed’s zero-rate policy disguised the size of the debt’s budget burden during the Obama years, but it is now coming due.

The media blame deficits on tax reform, but the facts show the main culprit is spending. No one in the political class wants to talk about entitlements but that’s where the money is.
The tax cut paid for itself. But spending keeps rising. So we need to cut entitlements - Social Security, Medicaid, Medicare, unemployment benefits, food stamps etc.
Living in Singapore, entitlements in the US are none of your business. You neither pay for them nor benefit from them.
BY that standard it is none of yours either. Entitlements have become a huge part of the budget. Most of them cannot be reduced without a change in the law as they are non discretionary entitlements.
As an aside,some non-US posters (especially Milo, Sertorio, and Alexis) seem to have pretty good understandings of the American political scene. But only cassowary stands out, because not only does he know American government better than 90+% of Americans, but he understands the American psyche. How he acquired these traits? I have no idea.

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Sertorio
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Re: The US needs to cut spending on entitlements

Post by Sertorio » Mon May 13, 2019 4:29 am

Doc wrote:
Mon May 13, 2019 3:06 am
Sertorio wrote:
Mon May 13, 2019 1:07 am
cassowary wrote:
Mon May 13, 2019 12:20 am
Tax revenue keeps rising ... WSJ
You wouldn’t know it from the press coverage, but there’s some modest good news about the federal budget. The deficit is rising, but not as much as feared because tax revenues are increasing due to faster economic growth.

The Congressional Budget Office reports in its April budget review that revenues rose 2% to $2.041 trillion in the first seven months of fiscal 2019 from a year ago. Payroll tax revenue rose 4.7% due in part to rising employment and wages.

Individual income taxes were essentially flat in the wake of the tax cut, but corporate income taxes were down only $7 billion for the first seven months to $114 billion despite the cut in the corporate tax rate to 21% from 35% in the 2017 tax reform. April was the deadline for final 2018 tax payments for most corporations, and tax revenue from higher corporate profits partly offset the lower rate.

Overall revenues increased despite a sharp decline in payments to the Treasury from the Federal Reserve of $15 billion, or 34%. The decline is due to higher short-term interest rates that lead the Fed to pay banks more interest on their reserves. Watch this account closely in the future if the Fed’s reserve payments become a net Treasury drain. This is one cost of the Fed maintaining a very large balance sheet.

So why has the federal deficit increased by $145 billion this fiscal year to $531 billion? Because federal spending continued to rise rapidly—7% in the first seven months to $2.571 trillion. That’s $178 billion more than in the same period a year ago. As you’d expect, Social Security benefit payouts rose 6%, Medicare outlays 5% and Medicaid 4%. Anyone who thinks federal deficits and debt can be contained without entitlement reform probably still believes in the Russian collusion story.

Defense spending rose 10%, or $33 billion, in the first seven months, as intended by Congress and the White House after eight years of neglect under Barack Obama. The higher outlays went for much-needed operations and maintenance and R&D. Outlays for the Pentagon are still only about 3.2% of GDP, which is close to the historic low since World War II.

Interest payments on federal debt held by the public rose 13% to $234 billion, due to higher short-term interest rates and more debt. The Fed’s zero-rate policy disguised the size of the debt’s budget burden during the Obama years, but it is now coming due.

The media blame deficits on tax reform, but the facts show the main culprit is spending. No one in the political class wants to talk about entitlements but that’s where the money is.
The tax cut paid for itself. But spending keeps rising. So we need to cut entitlements - Social Security, Medicaid, Medicare, unemployment benefits, food stamps etc.
Living in Singapore, entitlements in the US are none of your business. You neither pay for them nor benefit from them.
BY that standard it is none of yours either. Entitlements have become a huge part of the budget. Most of them cannot be reduced without a change in the law as they are non discretionary entitlements.
You are right. They are none of my business. I may comment on them from an academic point of view, but American policies are for Americans to decide. I may be more emphatic when those policies affect me, but that's about it.

Jim the Moron
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Re: The US needs to cut spending on entitlements

Post by Jim the Moron » Mon May 13, 2019 6:48 am

We respect your views, Sertorio - agree or disagree - what the hell.

I sometimes wonder - do we have a couple of dual citizens on this forum? I'm thinking of cassowary and dagbay. But that's their business. My two youngest hold dual citizenship.

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cassowary
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Re: The US needs to cut spending on entitlements

Post by cassowary » Mon May 13, 2019 8:25 am

Jim the Moron wrote:
Mon May 13, 2019 3:24 am

As an aside,some non-US posters (especially Milo, Sertorio, and Alexis) seem to have pretty good understandings of the American political scene. But only cassowary stands out, because not only does he know American government better than 90+% of Americans, but he understands the American psyche. How he acquired these traits? I have no idea.
Thank you Jim.

Not only the American psyche, but also the Muslim psyche. Long ago, I used to be a popular writer (under a psuedonym of course) for Faithfreedom, a website started by Ali Sina, an apostate of Islam for ex-Muslims. I wrote many articles. One day, Kim Shienbaum from Rutgers University contacted me, asking permission to publish my articles in a book because of my insight into Islam and Muslim life.

They were published in a book, "Beyond Jihad: Voices from the Inside." I understood the Muslim psyche so well that Prof Kim thought I was an ex-Muslim. Hahaha. :lol: :lol: :lol: Voices from the inside indeed. I was never a Muslim.

No, I am not a dual citizen, Jim. Singapore does not allow dual citizenship.
The Imp :D

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