Good for a laugh!
I thought it was an interesting piece. Doesn't answer every issue, but identifies a lot of them.
How out of touch can you be!
August 7, 1865
To My Old Master, Colonel P.H. Anderson, Big Spring, Tennessee
Subject: HOW YOU FIX CONGRESS!
The following is a bit simplistic, but in the spirit of the banking rebellion and the notion that protest is generally better than apathy, I'm passing this on:
THIS IS HOW YOU FIX CONGRESS!!!!! If you agree with the above, pass it on. If not, just delete. You are one of my 20. Please keep it going.
Warren Buffett, in a recent interview with CNBC, offers one of the best quotes about the debt ceiling:
9-9-9 is a trick.
Currently, individuals pay federal taxes equivalent to 7.2% of GDP, including income taxes + ad-valorum taxes (which are not just on individuals). In terms of houshold income, they pay about 13%.
If you take a 9% flat tax on income, plus a 9% flat tax on sales (let us assume all income is spent), there is 18%. Let us also assume that dividend revenue, as well as all capital gains, are taxed at 9%. Cain mentioned he would abolish the capital gains tax, but would it also be exempt from the income tax's 9% catch-all? After all, it is income!
Today, that would be:
1.4 trillion in PIT
827 billion in SSI
390 billion in CIT
~200 billion in other taxes
Total of about 2.8 trillion in revenue
Total of 2.5 trillion in spending.
Defense spending at 450
300 billion in other discretionary spending
350 billion in interest payments on the debt
230 billion in welfare spending
680 billion in SSI spending
400 billion in Medicare
100 billion in Medicaid
8% reduction in Navy aircraft and fleet size.
500 billion in cuts to veterans benefits
1 trillion in tax increases, almost all to the middle class.
2.6 trillion cuts in Medicare
~4.4 trillion cuts in Social Security
Decent cuts to farm subsidies. No cuts to energy
Cuts student loans and housing loans