US Deficits

The meme passing ’round is that the US deficit is going to be cut by 50% in the next four years. Many are throwing the bullshit flag over revenue projections (i.e. incoming tax payments), saying it just can’t be done. I’m here to say it’s all good…

US Deficit Projection

It’s easy to cut the gap in half over four years when you quadruple it in the first.

I guess deficits really don’t matter after all.

Comments

Joseph Ostermann says:

Do you really believe that the U.S. government will cut our deficits in half. Obama wants to pass Cap & Trade, immigration Reform (More Medicaid payments) add on the public option to the healthcare law, and stack the Supreme Court with activists. I know that you can add some more expenditures that Obama want to initiate.

There is one way that he could reduce the deficit. I’m readilng that the Flat Tax, Vat Tax and/or National Sales Tax may be coming to our country. You know there are over 139 coutries that have a Vat tax. None of them dropped any of the income taxes when they added the Vat Tax in the 60’s & 70s’. All they did was start with a low Vat tax (averaged around 7%) The average in europe is around 19% now.

The above chart showing our deficits is very graphic. Percenage wise the U.S. deficit was around -10% in 2009/2010. As a comparison, the UK deficit is around -13%, Spain around -12%, France around -6.5%, Germany around -3% Greece around -12%
amd Norway which has a +12% positive budget.

An interesting point is that the EU requires all of the countries to maintain no more than a -3% deficit. As of 2009, there were
10 EU countries that were over the -3% deficit.

We are speinding on the European model and it will destroy the captiialist based economy that has sustained us since the country was formed.