President Obama and his team delivers us a budget today: $3.55 trillion for 2010, and he’s wanting to spend $3.94 trillion this year. Yes, trillions.
Starting in 2011 productive Americans will see tax increases like never before. Here’s a brief breakdown from ABC News’ Jake Tapper.
The WSJ also kindly points out how seriously bad this is:
But let’s not stop at a 42% top rate; as a thought experiment, let’s go all the way. A tax policy that confiscated 100% of the taxable income of everyone in America earning over $500,000 in 2006 would only have given Congress an extra $1.3 trillion in revenue. That’s less than half the 2006 federal budget of $2.7 trillion and looks tiny compared to the more than $4 trillion Congress will spend in fiscal 2010. Even taking every taxable “dime” of everyone earning more than $75,000 in 2006 would have barely yielded enough to cover that $4 trillion.
That boggles the mind. There is no way we can catch up to this massive deficit and debt. What worries me even more is that we’ll be down a spiraling path of careless spending without the will to repay. It’s like those people who are in credit card debt for tens of thousands of dollars. They get depressed and hopeless, and to a point indifferent to their financial well-being as they give up any effort to pay back.
Are you scared yet?
