Monday, May 11

Obama's 2010 Budget Spends Almost $12,000 Per American!

I was one of a large (and still minority) group of people who saw the housing bubble long before it popped. Seeing the bubble had nothing to do with any special skills other than employing a little simple math and comparing it to data on certain items, such as average family income. It was easy to then see that most people could not (and still can't) afford most of the homes that were being sold.

Now comes the President's 2010 budget that is also screaming that this is something the Country can't afford.
After taking office in January, Obama released a bare-bones version of his budget in February that offered a spending plan for 2010 carrying a price tag of $3.55 trillion. The White House revised up the size of the spending plan to $3.59 trillion. - Yahoo News
At $3.59 Trillion, the Government will be spending around $11,970 per American (Given 300 million Americans). That comes out to Government spending of $47,900 for a family of four.

This is an impossible spending figure for the country to sustain. Hell, it will take years, most likely decades of taxation just to pay this one year's deficit back.

Think of buying a car for that amount of money. You would be looking at a five or seven year loan. Most all sensible families would opt for a more fiscally responsible alternative. Now picture buying and trying to pay off a car that costs $45,000 every year! This is the kind of debt that the Obama Administration is burdening families with.

This story gets worse:
The new White House figures bring the deficit estimates closer in line with the non-partisan Congressional Budget Office, which has forecast a $1.85 trillion deficit this year and $1.38 trillion in fiscal 2010. - Yahoo News
So, for 2009, the Government is borrowing $6,000 per American. That is $24,000 per family of four.

Then in 2010 they plan on borrowing another $4,600 per American ($18,400 per family of four).

I have a senior management position in a company that employs over 100 people. Looking at my own tax bill for 2008, I am guessing that the senior management's tax payments is nowhere near to covering the gap between what the staff is paying in taxes and what the Government is spending.

Now remember that half of the population pays no taxes. That means that the amounts need to be doubled for the half that does!

Note: The Government does receive tax revenue from other sources, such as business taxes, but the Government also spends money in addition to what is stated in the budget, such as supplemental spending bills to cover the wars in Afghanistan and Iraq. So the above is an estimate.
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