Sunday, October 26, 2014

Standard and Poors Downgrade Simplified

September 4, 2011 by  
Filed under Economy, Hot Topics

Why S&P Downgraded the US:

 U.S. Tax revenue: $2,170,000,000,000

Federal budget: $3,820,000,000,000

New debt: $ 1,650,000,000,000

National debt: $14,271,000,000,000

Recent budget cut: $ 38,500,000,000

 Let’s remove 8 zeros and pretend it’s a household budget:

Annual family income: $21,700

Money the family spent: $38,200

New debt on the credit card: $16,500

Outstanding balance on the credit card: $142,710

Total budget cuts: $385

Comments

19 Responses to “Standard and Poors Downgrade Simplified”
  1. JamesBryson Culp says:

    It is clear. Continuing deficit expenditure is ignored yet it should not exist; national indebtedness increases greatly each minute and each day. This is not difficult to understand. Senator Marco Rubio understands.

  2. This is what I deemed the most ridiculous and paltry attempt to fool the American public ever tried. I believe most Americans are smart enough to see right through this charade and will stand up and do the right thing if given the opportunity. The opportunity of which I speak is when the Republican leaders finally get backbone enough to start IMPEACHMENT proceedings and put the question to the people.
    How long are we going to stand by and let this IMPOSTER tear our country down before we start screaming for his OUSTER ???????

  3. Fred Easton says:

    Here is another example of govt agencies not working together. The article indicates that the IRS has no rules against illegals
    in this case. ENTER THE FAIR TAX….IT WOULD ELIMINATE THIS ISSUE, and may more. No one needs to wonder why we are broke. The system is broken and we are financially broke as a result OF THIS TYPE OF FOOLISHNESS.

    Illegal Aliens Receive $4.2 Billion in Additional Child Tax Credits
    What happened to the balanced approach toward revenue?

    Posted by Daniel Horowitz (Profile)
    Friday, September 2nd at 1:49PM EDT
    13 Comments
    Throughout the entire debt ceiling imbroglio, Democrats incessantly regurgitated the talking point about the need for “a balanced approach.” They were so uniform and synchronized that they sounded like the sheep in Animal Farm. Ironically, their idea of a balanced approach was singularly focused upon Oil Company and corporate tax deductions, which are negligible compared to the crushing debt. The targeted oil tax deductions would have brought in $2 billion in annual revenue, while the cancellation of the corporate jet depreciation deduction would have saved only $3 billion over 10 years!

    Well, it turns out that illegal aliens, most of which pay zero in net taxes, enjoyed $4.2 billion from the Additional Child Tax Credit (ACTC) last year. That’s more than the annual revenue from the selected oil tax deductions and corporate jet deductions combined!

    Yesterday, the Treasury Inspector General for Tax Collection released a shocking report detailing how illegal aliens are able to utilize a filing loophole to obtain billions in ACTC funds. The Earned Income Tax Credit (EITC) and ACTC (unlike the base child tax credit) are totally refundable and can award the recipient with a negative tax balance. Appropriations for the EITC in FY 2010 were $54.7 billion and $28.3 billion for the ACTC. While EITC appropriations are protected from illegals (those who don’t engage in identity theft) because they are only awarded to those who provide a valid Social Security number, the same cannot be said for the ACTC.

    Here is the punchline of the Inspector’s report:

    Many individuals who are not authorized to work in the United States, and thus not eligible to obtain a Social Security Number (SSN) for employment, earn income in the United States. The Internal Revenue Service (IRS) provides such individuals with an Individual Taxpayer Identification Number (ITIN) to facilitate their filing of tax returns. Although the law prohibits aliens residing without authorization in the United States from receiving most Federal public benefits, an increasing number of these individuals are filing tax returns claiming the Additional Child Tax Credit (ACTC), a refundable tax credit intended for working families. The payment of Federal funds through this tax benefit appears to provide an additional incentive for aliens to enter, reside, and work in the United States without authorization, which contradicts Federal law and policy to remove such incentives. […]

    Because concerns were raised by Congress, the Government Accountability Office, and the IRS regarding noncompliance with EITC requirements, a law was passed in Calendar Year 1996 to deny the EITC to individuals who file a tax return without an SSN that is valid for employment. As such, filers using an ITIN are not eligible for the EITC. The change in the law was made prior to the establishment of the ACTC. However, the same law prohibits aliens residing without authorization in the United States from receiving most Federal public benefits, with the exception of certain emergency services and programs.

    Nonetheless, IRS management’s view is that the law does not provide sufficient legal authority for the IRS to disallow the ACTC to ITIN filers. In addition, the Internal Revenue Code does not require an SSN to claim the ACTC and does not provide the IRS math error authority to deny the credit without an examination. As such, the IRS continues to pay the ACTC to ITIN filers.

    According to the latest employment data, we’ve lost 2.57 million jobs since Obama took office, even though there are 5.1 million additional people of working age in the country. Illegals are not only competing for scarce jobs; they are enjoying billions in handouts ensconced in the tax system, due to willful negligence on the part of the IRS. For most Americans, they are the most belligerent agency in the government, yet they are suddenly indolent in going after illegals. Obama wants them to clamp down on tax deductions for corporations that pay billions in taxes, while blithely allowing them to ignore billions in refundable handouts to those who shouldn’t be here in the first place.

    Talk about a balanced approach.

  4. Gerald Davis says:

    Great post Laurie.

    Very concise info.

  5. Barry says:

    No button to link this post into facebook?

  6. Dave Fairchild says:

    It’s a pity that 10 years ago, when we finally balanced the budget after nearly 50 years of deficit spending, with a 230 billion dollar surplus to boot, that the fool we elected for President blew it all. And then started two wars without asking the American people to increase their taxes to pay for these wars. And to finish us off, set the economy into a tail spin. So our current President, unlike his predecessor, began his term in the midst of the worst recession since the Great Depression.

  7. The Tea Party illustrated this well. We produced a similar short piece on what our budget deficit looks like compared to a monthly household budget. Either way, the numbers are astounding. More on my blog at http://bit.ly/p1iuQe

  8. mzk1 says:

    Absolutely amazing and concise.

    P.S. Ann Coulter linked you.

  9. Craig says:

    Hey Dave Fairchild, good input :)

    It was Newt that balanced the budget (ref your point) !!!

    And just because an elected nitwit started messing things up by following the Left’s agenda (they demanded the nitwit “do something”) DOESN’T mean the current, but well-spoken, twit gets to mess things up far-far-far worse than the last prez. (again, per your point)

    We are in a mess because the GOP left its roots for the Leftist agenda (not just the prez, all of them)

    What we need is are true, and real, conservatives under the guidance of Newt, using Ron Paul as a baseline.

    Peace to all,
    Craig

  10. Just a guy says:

    Brilliantly to the point.

    Even if deficit spending stopped immediately, a debt to income ratio greater than 6 to 1 can not be resolved (and resolution will happend) without default, inflation, crushing tax increases, or outright theft.

    The point of no return has been passed, and it’s only a question of how severe the injury will be.

  11. ST says:

    Just for fairness, could you add a line with potential revenue increases, i.e. ending the Bush tax cuts, increases on the 1%, ending tax loop-holes, a new Wall Street transaction fee, etc.

  12. Casper Ienni says:

    To Mr. Dave Fairchild, please remind us all of the virtue of a ‘surplus’?

  13. Bruce Lipnickas says:

    before LBJs war on poverty 1n 1965 charities took care of needy people and it worked, prison population 1970 200,000 today 2.3 million. Ive seen government subsidized housing for workers ( beautiful places to live), turn into crack infested breeder boxes for welfare sows, because in 1968 FEDS said they have to let welfare people in. The worker has been forgotton in america in favor of “non workers” parasitizing off of the working person. if your on welfare or SS disability you get free housing, free dental, free medical.the worker gets nothing, factories moved from USA because workers buying power was inflated away by giving money to non workers

  14. Dirt Poor says:

    Could you please bring these numbers up to date as of Sept. 2012?

    Thanks!

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