As a Public Service Announcement, I feel it is time that the American people are taught where the U.S. Government gets their money from. I’m not affiliated with any political parties, and this is not a political post, but a post to educate the masses. With promises from politicians to eliminate student loans, make college free, pay reparations, free healthcare for all, or send Americans to the moon again for fun! I would like for you to look at the following graph from our U.S. Treasury Department and think about where does the U.S. Government get their money from for such promises?:
As you can see from the above graph all Americans pay taxes in some form to the U.S. Government. Some of us pay income taxes, Social Security and Medicare straight from our paychecks. Others will pay taxes by making money in the markets (dividends), or consuming products and the corporations will then pay the taxes for you from the inflated prices of products. There are also gas taxes, tanning taxes, cigarette taxes, various sales taxes on imported goods, and other ways to inflate the price of products so the consumer pays the higher burden of taxes that are imposed on companies or Wall Street. Now look at the next graph from the U.S. Congress Budget office:
As you can see from the above chart the United States had $3,321,000,000,000 in revenue for 2018. A little over half the revenue is from individual income taxes and another 35% is from payroll taxes. You gave the U.S Government $2.855 trillion dollars or 86% of their total revenue from those two forms of taxes. You may be saying lets tax the corporations more since they are 6% of the total revenue. But, again who really gets taxed if you tax corporations more? It’s just the consumers who pay higher prices to make up the difference. It’s basic capitalist principles at work. Corporations aren’t going to make less in profits for their share holders, and if they post crappy numbers then the stocks crash, and eventually we just all go into a recession or depression since the S&P 500 or the DOW drops. So, corporations raise prices on goods, you all pay more, they make profits, stocks are steady or rise, and the economy is still in good shape because you paid more money out of your pocket to give the Government. Now look at our last chart together from our U.S. Congressional Budget Office showing how high the U.S. tax revenue is compared to other leading nations:
Do you see the United States toward the bottom of that list of countries who’s taxes are only around 26% of our total GDP. That means that we still have a lot of free choice in how we can spend our money, since our tax burden is still very low compared to all those countries. Yes, we all pay taxes in order for the U.S Government to function, and Yes, we will be able to fund everything that we currently have from those taxes, and we are still toward the bottom of that list.
What about taxing the rich more! That might work too, but the majority of the money the 1% have would be transferred around the world to tax havens, and then it would be taken out of the U.S. markets, and it would drop the money supply. This limits what the rest of us are all trying accumulate. I would rather keep their money working in the U.S. and still have a chance to get my hands on some of it too. We probably will see their . taxes raised anyways, especially since many prominent wealthy Americans are in favor of their taxes going up for a better America. The top 10% of Americans did pay 69.47% of all tax revenue in 2016 and the bottom 50% paid 3.04%. Maybe the flat tax debate should be discussed some more and see if that helps any…but that’s for another day.
So, the moral of the story is that nothing is free! Denmark doesn’t have free college, because everyone is taxed for their education for their entire working lives. Their free education might cost them double, triple, or quadruple what it costs if you just pay up front like in the U.S. People in the U.S. have $100,000 in student debt because they made a decision to do that to themselves. Community college and your local state college could have been done with under $20,000 in student debt or no debt with a plan. That $20,000 gets paid back pretty quickly with a job, and a plan after college, and please don’t get a degree in Philosophy and be confused why there is no job market. You can’t just tax Wall Street to pay for other freebies in the U.S. It will still be paid out of the average Americans pocket with rising prices across the board for many different products.
So, as Public Service Announcement please spread the message to all Americans about where the U.S. Government gets their money from, especially as our politicians make ridiculous promises for free stuff, and come up with ridiculous plans on how to pay for all the freebies. The government is broke and we the people have all the money. We control them with our money, and voting for free will only cost all Americans more in taxes. Thanks