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Kiplinger - "A Stubborn U.S. Budget"

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TomCADem Donating Member (1000+ posts) Send PM | Profile | Ignore Sun May-09-10 07:57 PM
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Kiplinger - "A Stubborn U.S. Budget"
Here is a pretty informative article in Kiplinger that breaks down the federal budget. It is clear that addressing the deficit is not a simple matter of cutting ear marks, or simply cutting spending without tax increases, or increasing taxes without cuts in spending. Yet, after passing over a trillion dollars in tax cuts to the rich, it is amazing that the Republicans are able to push this notion that they are the fiscally responsible party.

http://www.kiplinger.com/printstory.php?pid=19490


Here are the key transfer payments and their share of total federal spending:

Health care: 23.8% (13% for the general senior population, 7.8% for the poor and 3% for veterans).

Pensions: 22.2% (19% for Social Security recipients, 3.2% for federal civilian and military retirees combined).

Unemployment benefits: 2.8%.

Food stamps and other nutrition programs for the poor: 2.7%.

Housing subsidies for the poor: 1.7%.

Cash payments to the disabled poor: 1.3%.

Low-income tax credit (direct payment to the lowest earners): 1.2%.

Cash welfare for poor mothers with children: 0.8%.

College-tuition aid (not including GI bill): 0.5%.

Crop subsidies: 0.3%.

Much of this 57% continues on autopilot, as entitlements are not subject to freezing or trimming -- unless Congress changes the authorizing laws. The lobbies for every entitlement are immensely powerful, and they remind Congress that transfer payments are spent almost immediately, supporting consumer demand across the nation.

So what's the biggest area of discretionary spending? Military operations and hardware. At almost one-fifth (19.6%) of next year's budget, defense is the third-largest federal expenditure by function, after health care and pensions.

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rrneck Donating Member (1000+ posts) Send PM | Profile | Ignore Sun May-09-10 08:07 PM
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1. As I asked my BIL the other day,
"And what has the military done for YOU?" There is no Soviet Union. There is not a single country on this planet that would stand a snowball's chance in hell of defeating us in a stand up fight. Our military is currently out there defending corporate profits, and they're doing it out of your pocket.
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The Magistrate Donating Member (1000+ posts) Send PM | Profile | Ignore Sun May-09-10 08:11 PM
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2. Odd, Sir, How the Ten Percent or So Paid To Bond-Holders Is Never Stigmatized As 'Transfer Payments'
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