The projected FY 2016 deficit is $615 billion dollars. Where do you want to take it out of? HSS, the top expenditure? Medicare is in there you know. How about from the second expense line, Social Security? I know people who would take it all out of the military but that would only be a $576 billion dollar savings, not the whole thing.
How about increasing taxes? How about putting it all on corporations? Raise their taxes from $300 billion to $600 billion. It won’t work because it will kill off many companies which will kill off so many jobs personal income tax would plummet.
Corporations don’t really pay income tax anyway as they pass it on. Usually in higher prices and lower payroll. So we might as well just put it on the individual which is where most of the federal government revenue comes from directly.
The deficit is 23% of personal income tax and payroll tax. Only half of the people pay income tax so the whole thing goes on half the population. Is that going to impact the economy like it was a 46% tax increase?
I know. Let’s create an economic school of thought, call it Keynesianism, and believe that deficit spending is good because it creates aggregate demand. That would make me sleep well.
|Individual Inc Tax and Payroll Tax||2,674,940|
|Corporation Income Taxes||292,561|
|Estate and Gift Taxes||21,094|
|Department of Health and Human Services||1,110,428|
|Social Security Administration||991,558|
|Department of Defense--Military Programs||576,328|
|Interest on Treasury Debt Securities (Gross)||447,293|
|Department of Veterans Affairs||177,612|
|Department of Agriculture||153,773|
|Office of Personnel Management||93,883|
|Department of Treasury operations||93,083|
|Department of Education||79,098|
|Department of Transportation||77,832|
|Other Defense Civil Programs||63,679|
|Department of Homeland Security||51,769|
|Department of Labor||43,546|
|Department of Justice||39,115|
|Department of State||30,911|
|Department of Housing and Urban Development||28,691|
|Department of Energy||27,416|
|National Aeronautics and Space Administration||19,153|
|International Assistance Programs||16,042|
|Department of the Interior||14,022|
|Department of Commerce||10,527|
|Environmental Protection Agency||8,340|
|National Science Foundation||6,895|
|Corps of Engineers||6,705|
|Executive Office of the President||400|
|Small Business Administration||-378|
|General Services Administration||-719|
|Surface Transportation Board|
|Undistributed Offsetting Receipts:|
|Surplus (+) or Deficit (-)||-615,805|