OT rant- interest on federal debt

[kathyc2]

From Monthly Treasury Statement, gross interest for FY2019 is projected to be 593 billion. Gross interest includes amounts general funds pay to trust funds for borrowing money, in addition to amount paid on debt held by public.

From IRS 2016 tax data, 95% of returns had AGI of 200K or less. Total income tax on these returns was 665 billion. So, tax from the lowest 95% barely covers interest.

The gall of ALL of them to celebrating a deal to spend even more.

[WICPA]

I think they are celebrating the fact that they will all keep their free health insurance, free use of athletic facilities, free haircuts and free fresh flowers delivered to their offices daily. Along with generous pension plans, ability to employ friends and family in their campaigns with tax free contributions as well as free travel all over the world on so called "Fact Finding Missions" in which nothing is ever acted on.

All in the name of Public Service. Term limits anyone?

[kathyc2]

I seriously don't care about the things you listed. What I do care about is how what is happening in the here and now will effect the future of the country.

Putting the federal numbers in terms anyone can understand: John Smith makes 33K a year, but spends 41K a year, and on top of that has a 230K mortgage. It's easy to see that John Smith is heading toward financial ruin, as is our country.

Alarms should be going off all over, but it's rare to even see a news article about it.

[Dude]

"John Smith makes 33K a year, but spends 41K a year, and on top of that has a 230K mortgage. It's easy to see that John Smith is heading toward financial ruin, as is our country."

I know Mr. Smith, he is 100 clients of mine. I noticed he is overly concerned with the standard of living the Joneses are maintaining, he is always talking about "keeping up with them". I have talked with Smith about his choices and his looming financial ruin. His response "where's my Earned Income Credit? I want to buy a $60000 pick up truck so I can commute to my low payng job in style" He also mentioned the lovely $10,000 birthday party Jones threw for his five year old.

It seems Mr. Smith has taken the cue from our elected officials and decided to live by the Carpe Diem code.

[Rapid Robert]

Inflation is a stealth tax, this has been known for a long time. So, if you are a flaming hypocrite about not raising taxes, simply raise the debt instead. Then, artificially suppress interest rates to trigger more inflation, so debt can be paid back with cheaper dollars, and bonus, the interest on the debt is lower than it realistically should be.

Taxes And Inflation Have The Same Net Effect – Reducing Your Purchasing Power

The other beauty of this stealth tax is that it is regressive (even people who pay no income tax still "pay" via inflation), thereby further enriching the already rich.

And speaking of inflation, don't forget the other stealth tax that was put into TCJA -- linking inflation adjustments to Chained CPI, which by design underestimates true consumer price index for most people. But just like the heavy marriage penalty built into the law (SALT deduction), this injury to us rarely gets mentioned.