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Reply to "I want to understand the deficit issue better"
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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Anyone who relies on SS and Medicare needs to wake up now. These new R tax proposals aren’t about helping out poor people. They’re about starving the government of more revenue to cause a crisis and force cuts to entitlements. All the grants, federal employees, foreign aid - those are beans compares to the entitlements. Federal spending is already increasing under Trump. Because of the entitlements and interest on the debt! It took Rs 25 years to “starve the beast” but now they are turbocharging the project. MAGA is so dumb though that they’re falling for it. [/quote] Social Security could be made solvent for decades by raising the contribution cap.[/quote] Keep up. Republicans are not proposing to raise the contribution cap to shore up SS. But they are giving even more tax cuts to the wealthy. [b]US govt is already tapping the trust fund.[/b] This is terrible time speed up the revenue loss to the federal Govt. But republicans know that and they are doubling down on it. [/quote] That's a long standing myth. Disbursements from those funds (there are two) can only go to program benefits and administration. The rest, by law, is used to buy treasury bonds. There are many ways to look at this. Spending as a % of GDP since 1930 was highest in 1944-1945, 200 probably took until the 1970s for the costs incurred during WW2 to have been completely zeroed out (not thinking in terms of specific debt instruments, just the cost and federal spending and debt service). In 2024 it was also less than 1 percentage point higher than during Reagan's first term. Since 1960, total tax revenues have been between 15% and 20% and in 2024 a little over 16%. > 65 population currently around 17% and will go to around 22% of population by 2050. I think we are far enough away from a debit cliff to fix it. Interest rates for the past 20 years have been lower than they were from Nixon to the beginning of GW, so we've had a grace period. But we have to fix our political system, and that does NOT mean using Trump, DOGE, and craven republicans in Congress to do it. [/quote]
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