Monday, November 12, 2012

Some Weekend Research

A lunchtime report on some weekend digging. Simple stuff. I checked the increase in gross federal debt during Reagan's term and during Obama's term. I calculated the average annual debt increase for each President, then divided it by the estimated number of persons under 40 at the end of each President's term. After all, our kids will be paying for this. Turns out the debt went up $1380/year for Reagan for each person under 40 at the end of his term. For Obama, it was $9403. The debt has been going up almost $1.6 TRILLION a year on Obama's watch.

Clearly we all need to pay more taxes, but the problem is not taxes. The problem is 535 elected representatives and one President all competing to be Santa Claus.

2 comments:

  1. I don't think it's clear that we all need to pay more taxes. I think a larger % of those who don't pay income tax should pay something just so they have some skin in the game, but that wouldn't do much for revenue. In 2007, federal income tax revenue was $1.53 trillion and the deficit was $160 billion. In 2011, federal income tax revenue with the same tax rates was $1.27 trillion and the deficit was $1.3 trillion. Annual spending increased by $880 billion in four years. Tax revenue decreased because fewer people are working and income has decreased. Raising taxes will only make the economy worse. The problem is 100% spending. They ought to be able to get by on $1.3 trillion a year.

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  2. Might also do some lagged analysis that accounts for wars declared. But complexity is a Pandora's box of course.

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