Tuesday, August 4, 2009

Federal Tax Receipts Go Down. But We're Creating a New Entitlement?

The following picture tells a thousand words. It shows how individual and corporate taxes paid to the federal government have plummeted during the last year. Yet, we are spending trillions and starting a new major public healthcare option that will eventually lead to socialized medicine. I guess so long as the credit card spending hits in the 3rd quarter and GDP goes up temporarily, it's ok? Equating Federal tax revenue with federal spending would be a responsible policy. The revenue is the source of all the federal spending that Obama wants. At some point the well runs dry. This is not just Obama's doing since previous presidents have run budget deficits. But Obama is taking deficit spending to levels that are well beyond what his predecessors did for a false hope called "stimulus". If ever we needed a pro-business economic policy and a president and congress who understood how to help business it would be now.

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