Washington economics versus actual economics


Politicos are patting themselves on the back for picking your pocket
The press is emphasizing the wrong part of the story here. So I added my own emphasis.

So far this year, tax revenues total $1.505 trillion, an increase of 11.2 percent over the same period last year. That figure includes $383.6 billion collected in April, the largest monthly tax collection on record.

Tax collections swell in April every year as individuals file their tax returns by the deadline.

For the first seven months of this budget year, which began Oct. 1, revenue collections and government spending are at all-time highs.

However, the spending total of $1.585 billion was up at a slower pace of 3.2 percent from the previous year.

The difference in the growth of tax collections and spending is the reason for the narrowing deficit.

Now this doesn't seem like it is all that important until you realize that the estimated inflation rate for 2007 is two percent. That estimate may change in a couple of days when the April figures are released.

So let's examine what is really happening.

The FedGovs have collected a record amount of taxes.

That means less money for you.

Government spending is at an all time high, even if the rate of increase is slightly down from the previous year.

That means less money for you.

The rate of increase in tax revenues is higher than the estimated rate of inflation.

That means less money for you.

The rate of increase in government spending is higher than the estimated rate of inflation.

That means less money for you.

And the National Debt will still increase this year.

That means not only less money for you, but you are paying interest which eats up even more cash.

There are two things we could do now to kick the economy into overdrive.

Lower taxes.

Decrease Federal spending.

Done correctly, that would actually result in more tax revenues.

And that could mean much more money for you.

— NeoWayland

Posted: Mon - May 14, 2007 at 05:10 AM  Tag


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