Why your taxes are so high, part 2

Some people have short memories. They forget what happened the last time a VitriolBot badgered me for data to support my thesis.

Part one of this post was inspired in part by Brad whining about taxes. It was also inspired by the Point Whores who have been attacking the less fortunate in order to score cheap points on the JoeUser board.

I posited that American taxes are not nearly as low as they should be, partially on account of military spending. Military spending has increased because of Bush foreign policy.

So when I see people whinging about taxes and blaming welfare moms and the mentally ill for their onerous tax rates, I feel their anger is misdirected.

Here is a nice pretty picture supporting my thesis:



Notice how military spending accounts for almost eighty percent of the deficit.

Here are some sample quotes from a well researched and sourced article found here: Link

An August 2003 Congressional Budget Office estimate put the FY2004 deficit at $480 billion. This estimate did not include the recent request for $87 billion to occupy and rebuild Iraq and Afghanistan next year, boosting the projected deficit to $567 billion. ..Nevertheless, the Bush Administration is pushing for another increase in military spending after a 17% rise this year (excluding costs in Iraq and Afghanistan). When these factors are included, next years' budget deficit is likely to exceed $600 billion. It will actually exceed $800 billion if the $200 billion borrowed from the Social Security Trust fund is counted as debt.

This deficit is so reckless that the International Monetary Fund (IMF) recently scolded the United States for fiscal irresponsibility, criticism normally directed at Third World regimes. Last February, a US Department of Treasury report said that income taxes must be raised 66% to balance the budget, yet no one took notice. Few Americans are concerned because corporate cheerleaders like Larry Kudlow at MSNBC and the young models at Fox News tell them everything is great. Many Americans think budget problems can be solved by just cutting welfare and foreign aid. However, if Congress eliminated all federal welfare programs, the military budget would still have to be cut to balance the budget.

While the rest of government can be trimmed, it is obvious that at least $100 billion must be cut from annual military budgets to help save the nation from hyperinflation or bankruptcy. This is not unreasonable since the annual military budget has grown by over $100 billion the past three years; a figure which does not include war costs in the Middle East. In addition, other federal government spending must be slashed, and Congress should scrutinized the outrageous request for $87 billion for colonial adventures in the Middle East; which is several times the annual GDP of both Iraq and Afghanistan. Another $55 billion will be requested early next year unless a fantasy plan succeeds in collecting that much from foreign contributions for the "war on terror." The entire world is perplexed as to why the US Government has asked them for funds and troops to rebuild Iraq after the USA defied the United Nations and international law to conduct an unprovoked bombing campaign and ground invasion.

(G)overnment spending diverts resources and skilled manpower away from America's economic engine. For example, some 200,000 military reservists have been diverted from productive tax paying employment in the private sector to tax absorbing work in the military.

Those in the rapidly growing government sector may feel immune to a faltering economy, yet they should remember that their pay and retirement benefits depend on a healthy economy to generate taxes. Federal workers and military personnel should be alarmed that 27 cents of each dollar they are paid next year was borrowed. ... What is truly alarming is the speed this deficit has grown, from a surplus when Bush took office to a record deficit three years later.

The only thing keeping the nation afloat is a huge trade deficit which pumps a half trillion in surplus dollars overseas, which is used to buy US treasury bonds. China/Hong Kong have $469 billion in foreign currency reserves (mostly US dollars), and lent the poor USA $41 billion last year through the purchase of US treasury bonds. China spent nearly as much on US treasury bonds as it did on its military last year, and billions of US tax dollars now flow to China as interest payments.

The biggest threat to the national security of the United States is exploding debt which will lead to hyperinflation.

If Americans truly care about US servicemen, they should demand higher taxes or reduced military spending to ensure that GIs receive the retirement benefits they expect. Its well past time for American military leaders to rein in plans for bigger budgets and eliminate some programs. Billions of dollars are wasted each year on future military programs when it is obvious there will never be enough money to produce all that equipment. Is it possible that military leaders in the United States can overcome their inbred service loyalty and do something patriotic? They should tell their President that unless taxes are raised, cutting military spending is advisable until the overall budget situation improves. Since the USA spends seven times more on its military than any other nation, a $100 billion a year cut will still allow the USA to spend five times more than anyone else.