About Me

In writing the "About Me" portion of this blog I thought about the purpose of the blog - namely, preventing the growth of Socialism & stopping the Death Of Democracy in the American Republic & returning her to the "liberty to abundance" stage of our history. One word descriptions of people's philosophies or purposes are quite often inadequate. I feel that I am "liberal" meaning that I am broad minded, independent, generous, hospitable, & magnanimous. Under these terms "liberal" is a perfectly good word that has been corrupted over the years to mean the person is a left-winger or as Mark Levin more accurately wrote in his book "Liberty & Tyranny" a "statist" - someone looking for government or state control of society. I am certainly not that & have dedicated the blog to fighting this. I believe that I find what I am when I consider whether or not I am a "conservative" & specifically when I ask what is it that I am trying to conserve? It is the libertarian principles that America was founded upon & originally followed. That is the Return To Excellence that this blog is named for & is all about.

Wednesday, April 16, 2014

Restoring A Bedrock Financial Foundation For America

click on graphic to enlarge
Now that income tax filing day has come & gone many people wonder where their tax dollars went.  The above table provides the breakdown detailing the allocation of federal revenue received in fiscal year 2013 & in so doing gives people a chance to see how they would reduce the annual budget deficit themselves – I'm sure Paul Ryan would appreciate the help. 
The fiscal year 2013 budget deficit was $680 billion dollars – it is portrayed on the above breakdown as $24.50 for every $100 paid in federal taxes (income, payroll, corporate, & excise).  See note @ bottom of breakdown.
What line items would you cut or would you raise taxes to reduce the $24.50 in borrowing costs for every $100 paid?  For those who choose the raising of taxes method please be aware that Professor Friedman liked to say that "to spend is to tax" meaning that in the case of borrowing it has to be repaid plus interest from tax revenue sooner or later.  By preferring to raise taxes to lower borrowing costs you are just deciding to tax sooner rather than later.
Also with regard to the interest line item - it is projected to double to 12% in the next ten years after interest rates return to more normal levels from the Fed's artificially manipulated interest rates of the past many years.  This projection provides a clear picture of the Fed giving up its independence to work as an agency of the Treasury.
My own method of deficit reduction has been listed on RTE several times over the years.  In summary, there are four points that will bring America's financial house in order & accordingly will restore the prosperity that has been cruelly ripped from us by BO - 1) repeal ObamaCare & implement a premium support plan for Medicare based on Ryan's initial proposal that turns the cost curve down for generations to come while preserving current programs for people 55 & over, 2) follow Susan Lee's solution for controlling Social Security's growth by reducing the initial benefit for people under 55 so that the initial benefit is calculated based on the CPI rate instead of the wage rate as it is now, 3) begin Ken Blackwell's "cut, cap, & balance" plan that cuts projected borrowing in half next year (not 10 years from now) & caps spending @ 18% of GDP (it has averaged over 22% since 2009), & 4) enact the FairTax.
Now it is obvious that none of the above points will be done until after the 2016 presidential election, if then.  But the midterm election gives us a chance to elect congressmen & senators who we can work with to build a financial foundation for America & start a change in mindset that embraces such measures.  If this takes hold we may even have a chance to defeat the statists in 2016.  The solutions are there – all we need are the will & sense to follow through.
In the meantime click on Tax Freedom Day to see how to determine the date the nation as a whole has earned enough money to pay its tax bill (federal, state, & local) for the year.  Tax Freedom Day in 2014 is April 21 meaning that the average American draws the first dollar he could use for himself on April 22; when you add the effects of federal borrowing the date becomes May 6.  The link also shows how the FairTax will reduce these days to something more manageable – my target is 12:01 AM on January 1 of each year.


  1. Hi Doug - In terms of cutting items from the budgets the decision has already been made. BO took a page out of Bill Clinton’s playbook – gut the military. Liberals hate the military.

    In terms of tax freedom day, Charles Payne of Fox Business News says, we work eight hours per day for four hours pay. My grandmother would say, “It’s the government’s money they can take it back anytime they want”. Whatever philosophy you subscribe to, the Government is taking their money back at a record pace with impunity.

  2. Doug - I think a better chart would have the "For every $100 paid" have the total come to $124.50. Interesting to note that you could zero out either military, social security or health care and still not balance the budget.

    Saw in the paper today that Hillary would beat all GOP challengers. When you have 50% of the voters being supported by the government (and able to vote themselves a raise), those few who actually pay taxes can't overcome the sheer numbers.

    How 'bout this for an idea: If you are being paid by the government (including SSI, welfare, gov't employee of any sort, etc just to be fair) you are entitled to 3/5 of a vote. It would be the 'penalty' for living off the government. I know it doesn't stand a snow balls chance, but it has been done before....

    1. JM's second paragraph describes "Death Of Democracy" to a tee.

  3. Very well written and informative. To get your message thru to the "masses" needs advertising - newspapers, TV, Internet, Radio,etc. This costs money - lots of it. True you can reach thousands without the above help, but you still
    need millions more.

    I salute you in your determination and honest effort. It's an uphill battle, that can be won - "when?" is the key question.

    Many in Congress agree with you, but are afraid to say so, for one reason or another.

    Its a bitter and tough battle you have taken on and my own thoughts are GOOD LUCK. Hopefully it bears "fruit" and succeeds.

    1. Thanks for those kind words & recognizing what RTE is trying to do. There is nothing wrong with America that a little help & mindset change won't cure.

  4. What line items to cut from the chart? Ask the Founding Fathers - they would say all of them except defense. I wish that Americans would wake up and understand that all this spending is destroying our country and their own spirits. I remember hearing Sir James Goldsmith on Lou Dobbs' Moneyline show in the early 1990's say "Americans have lost their nerve." That was over 20 years ago - he saw the deterioration then.

    1. Thanks TLG for raising the constitutional point about the entire budget. The Founders would honor interest payments but would want to reduce them I'm sure. Same for congressional salaries.

  5. Regarding the Fair Tax: we need to shift the focus big time on lobbyists. the tax breaks and special complex and long tax regulations they get passed have at best dubious benefits to economic growth. Once exposed these special tax treatments will not be so sacred. Then the odds of Fair Tax passage will increase significantly.