Fighting To Spend Our Money
Thursday, May 25, 2017
President Trump is scheduled to release his first proposed budget as the leader of our country. The rumor is that this budget is an attempt to balance the federal budget in 10 years.
If you read any newspaper or watch any of the main stream media channels you will soon hear about how President Trump is proposing to cut services to the poor, sick, and the neediest of our society while at the same time proposing tax cuts for the rich.
If you are reading this, I have one question for you. Are you getting tired of hearing the same old arguments from our politicians? I don't know about you, but I sure am.
Actually, I think voter's being fed up is why Donald J. Trump became our president. I believe a majority of Americans are tired of the same old ways things have been done in Washington, D.C.
While 535 members of Congress fight to spend our money, they trade favors, which results in wasteful spending. There is a loser in all of this fighting and it is all of us, the American taxpayers.
Everyone believes they pay their fair share when it comes to taxes even those who don't pay any federal income taxes! All I am asking is that I begin to see some value for the taxes that I pay.
We pay taxes on the gasoline we purchase, the items we purchase, our cell phone bills, and now our politicians are thinking about making us pay a tax on the internet we use. I truly believe our elected members of Congress have forgotten that it is our money they are spending.
So as we begin to hear all the wailing and crying on the budget that will be proposed, I simply ask that you look at the chart below. The source of this data is the Congressional Budget Office https://www.cbo.gov/ that is charged with tracking our federal government's spending. Please note that these numbers are in trillions with a T.
The financial crisis ended several years ago. Is it too much to ask that our federal government go back to the same spending level they were at the end of 2007?
Before the financial crisis of 2008 the economy was creating $2,568.0 trillion in tax revenue. We have had GDP growth of less than 2-percent annually since then and in 2016 the economy created $3,266.8 trillion in tax revenue.
The federal government has increased its annual spending by over 41-percent since 2007. I am very confident that the American citizen has not enjoyed the same budget increase.
As a famous person once said, "It's the spending stupid."
What is wrong with expecting our government to live under the same budget rules that each of us as individuals have to? If something is not done at this moment in history it will not end well for any of us.1
1The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual.