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De Omnibus Dubitandum - Lux Veritas

Monday, August 22, 2022

Washington is running out of your money to spend

Democrat leadership is frantic.  But not for the reasons you may have heard. The just-passed Inflation Reduction Act is one of the largest revenue-raising bills ever passed.  It's slated to raise $725 billion over ten years through raising the corporate minimum tax to 15%, and $128 billion through enhanced IRS enforcement.  The promised $300-billion debt reduction is a farce and will never happen.  That's the public face of this very misleading bill.  

Let me share with you some of those mysterious moving pieces I'm always talking about.  Budget tricks are legion.  Let's look under the hood at the issues at play.

Issue I: The national debt now stands at about $31 trillion and is rising fast.  The estimated shortfall in this year's budget is $1.15 trillion.  Trillion-dollar budget deficits are slated to continue to rise indefinitely.  When we have a deficit, as we do now, we owe that money frequently to foreign countries like China and Russia.  Just as important, the change from a creditor nation to a debtor nation status influences how we are perceived in the world and reduces our political capital.........So this is self-induced extortion.  Becoming a debtor nation has no upside.....To Read More....

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