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Does Washington Have a Spending Problem or a Revenue Problem?

Depending on your opinion, what programs would you be prepared to cut, or what percentage of your income would you be prepared to give in taxes, to fix the problem?

As "fiscal cliff" negotiations heat up, congress can’t agree on whether Washington has a spending problem or a revenue problem. Nor can the American people or, in many instances, even economist

In an article on Marketplace.org, headed up “Washington has a spending problem not a revenue problem,” the argument is made that you can’t keep spending and just raising taxes to meet the outflow of money. The best way to fix the country’s deficit problem is to gut spending.

In a story in the Daily Kos, Joan McCarter looks at it from the other side in an article titled, “We have a revenue problem, not a spending problem.”

In the story, McCarter shows the loss in revenue as a result of the Bush tax cuts and the economic downturn in the economy between 2001 and 2011.

Our question is, if you believe that it is a spending problem and not a revenue problem, what programs would you be prepared to cut to fix the problem? On the other hand, if you believe it is a revenue problem and not a spending problem, what percentage of your income do you think it is fair for the government to take in taxes to fix the problem?

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Michael Robinson December 12, 2012 at 01:37 am
Spending is stimulative. Cut the spending, and revenue goes down. We have recent examples of austerity failing miserably to demonstrate why it's a bad idea.
Tammy Osier December 12, 2012 at 02:05 am
I read an article about the UK. They tried what we are doing and it failed just as republicans and true economists have tried to tell the public. But they didn't listen and voted for this mess. Let them own it and live with it. of course, they'll have someone to blame for the mess. That way they don't have to take responsibility. It's more convenient that way. It's a shame we've come to that.
The UK tried the tax the rich tactic, and guess what? tax hikes on the wealthy LOWERED revenue to the government. In fact, it not only lowered revenue, but actually cost them the equivalent in US dollars of 11.2 billion. Now the government of Conservative Party Prime Minister David Cameron has announced that it will lower the top rate from 50 percent to 45 percent. Imagine that. The story will be the same here. Watch and see. Revenue goes up when you take the claw out of the neck of the producers. Google this stuff. Amazing that we not only don't read history and learn from it, but another country tried exactly what we're doing with disastrous results! We havethe proof but refuse to see it because it's all about politics and money in pockets .
Tammy Osier December 12, 2012 at 02:15 am
Right now, we are in a catch 22. Many people are on umemployent because of no jobs. So, cutting spending on entitlements without stimulating the economy to create jobs would be futile. I'll look into it, but Clinton did a decent job on welfare reform. There's got to be a way to cut the waste there without hurting good programs. We need to have incentive to get off of it, and that's got to involve jobs. maybe cut some salaries in Washington and let them feel the same pinch everybody else is.
R December 12, 2012 at 04:24 am
Oh I don't know, how about an across the board 5 to 10 percent.
And when we are told that it's NOT possible, the sky will FALL and the planets in our solar system will be forevermore out of alignment... Then try cutting ALL grants including those to states, cities, counties and staduim projects by 20 percent. For example ,we could live WITHOUT roadside/intersection flowers for a season or 2 right? Then try enforcing our current laws so we actually take care of our working, tax paying class... Does anyone have any idea how much revenue our governments have LOST by not enforcing our borders and leaving workers and families unprotected? Attention greedy politicians: If we can't make it, YOU can't tax or TAKE it. No matter how high you raise the rates, in the end you get a greater part of a SMALLER pie which is STILL less than a little sample of a MUCH greater pie. So what do you make of the thousands or MILLIONS of families whose earning potential was stunted for YEARS because of a premature death, caused by those who weren't even supposed to be here? Then you have the lucky ones who survive the encounter, they make marked less due to long term injury or become OUTRIGHT disabled and HELLO MEDICAID. Then there's always the LOCAL CIDs stop taking FED/State grants until this crisis is averted... Take Away? Gore all ox's EQUALLY without regard to race, creed or sexual orientation.
R December 12, 2012 at 04:28 am
PROBLEM!!! You CAN'T spend what you DON'T have...
But if you're so inclined to buy me a hamburger today, I'll gladly pay you Tuesday...
R December 12, 2012 at 04:34 am
Yep he sure did, moved it right into the Farm Bills.
Of which upward of 80 percent of the spending has NOTHING to do with actual farming per se, but providing/paying for food PROGRAMS. "It's the end of welfare as we know it, But I feel fine..."
Karsten Torch December 12, 2012 at 01:44 pm
Okay, Pittsburgh...that might just be the most beautiful thing I've read in a long time....
Karsten Torch December 12, 2012 at 01:46 pm
Spending is NOT stimulative. Japan tried that crap for 10 years, and it didn't help. The government creates nothing. If the government spending stops, other spending will take its place. And it will be far more effective.
Government spending is just taking the money in with the left hand and doling it out with the right. After, of course, skimming a large percentage of it off the top.
Mike Lowry December 12, 2012 at 01:54 pm
We definitely have a spending problem, and have had it for 60 years. Study Calvin Coolidge for the right way to fix it. When faced with recession he cut the government in half and triggered a huge boom which only ended when Congress got greedy and started hiking taxes again.
As for what we need to cut, we should eliminate all government activities not specifically authorized by the Constitution. The federal government has no business being in the health care business, or the retirement business or the housing business or the education business or the transportation business (with the singular exception of the Interstate system). These are all the purview of the states (see Amendments, Tenth). We are being boiled like a frog, with ever-increasing "benefits" that are strangling our freedoms and making us into a dependent society.
Tammy Osier December 12, 2012 at 01:55 pm
BINGO!
karsten said: Government spending is just taking the money in with the left hand and doling it out with the right. After, of course, skimming a large percentage of it off the top.
Karsten Torch December 12, 2012 at 02:33 pm
This is not a hard concept. Spending is our problem. Revenue is only a problem because of our economy. Revenue has been pretty consistent over the last 60 years or so, averaging about 18% of GDP. We've had spikes, mainly the Clinton years when we had the dot com boom, but 18% is pretty comfortable. Through all tax hikes and cuts, that's what we get.
Spending this year is projected to be about 25%, maybe a little more. Revenue has never been that high, why in the world would anybody be delusional enough to think that revenue is the problem? Here's your scenario - you work, let's say for yourself. You make $100,000 a year. Have made right at that amount for the last, let's say, 10 years. Not bad. But you're spending $120,000 (pretty close to the current ratio). Does it make more sense to think you're going to start making enough to cover your spending? Or would you reduce spending? Seems fairly simple when a little logic is applied, no?
Karsten Torch December 12, 2012 at 02:44 pm
As far as specific cuts? Defense would be one. Even I think our expenditures there are just too high. By roughly half, IMO. Entitlements would be another. Streamline, make sure anybody on them needs them. Cover children if necessary, make adults work. If they're on some form of welfare, they need to work, doing something productive. Give back. Unless they're completely incapacitated and brain-dead, there's something they can do to earn some of what they make. Foreign assistance is another area - we need the money here. Especially those countries that don't like us. I realize this is a small amount of the total, but every little bit helps.
And then, like has already been said, cut out the rest of what our government is not supposed to be doing. Pretty much, our federal government should be providing public safety, including courts and code enforcement, infrastructure, national defense, and that's pretty much it. Everything else is fluff. I'm one of the few with my level of conservatism or libertarianism or whatever you want to call it that does believe in a basic social safety net, but it needs to be very basic.
Stormin January 7, 2013 at 08:12 pm
Yes the federal government has a revenue problem. The problem is there is no revenue since the government has no product to sell. The only money the government has is taken at gun point from the citizens. We used to call this robbery now we call it revenue.
Stormin January 7, 2013 at 08:21 pm
Obama could have ended all of it four years ago. However, he didn't end it, he expanded it. It's to late to blame bush any more.
Obama owns it now GregRodgers. Your great hope and change is just as much a war criminal as bush. Tastes like a sh*t taco doesn't it?
Good Grief Y'all January 7, 2013 at 09:27 pm
That's absurd.
Karsten Torch January 8, 2013 at 04:37 pm
In what way is it absurd?
Jackie Irish January 8, 2013 at 04:41 pm
The real deficit in Washington (and America) is humility.
You "know" the right answer and don't want to hear from someone else that you could be wrong. I "know" the opposite is right and feel the same way about you. Someone else "knows" we're both wrong and feels the same way about both of us. Round and around it goes. It's always blame the other group because that's easier than admitting the simple solution isn't always the correct one -and usually isn't when you're talking about something as complex as how to run the most powerful nation on Earth. Revenue problem? Maybe. Spending problem? Maybe. Both? Maybe. Neither? Maybe. We tried Bush tax cuts and wars we couldn't pay for and we got into a recession. We're trying raising taxes now (and not cutting spending; at least not quite yet). Maybe that will work. Maybe not. You don't know. I don't either. Admit to that and you just might be open enough to finding a solution that actually works.
Good Grief Y'all January 8, 2013 at 05:37 pm
Karsten, revenues are necessary to run this country whether everyone uses all the services or not. Taxes are revenues. You don't pay what is legally owed, you'll face the IRS. This is absurd: "The only money the government has is taken at gun point from the citizens. We used to call this robbery now we call it revenue." If a person has to be locked up as a fugitive from justice, guns may be employed, just not to operate the IRS. If you don't want to obey the laws here in the US, leave and go some place where you agree with all the laws. You're going to be on a long, long journey.
Jake Lilley January 8, 2013 at 06:01 pm
The only people who don't understand this problem are those who have never managed to balance their own household budget.
Karsten Torch January 8, 2013 at 06:06 pm
"If you don't want to obey the laws here in the US, leave and go some place where you agree with all the laws." And now you, as well, have lost the right to be taken seriously.
This is a tired argument. If you don't like the laws, you should change them. That's why we have the process of changing the laws. And I, like many, feel that we are already taxed too much, in many different ways. And that our government spends far more than it should. So "go find someplace with laws you like" is an ignorant statement. At best.
Karsten Torch January 8, 2013 at 06:08 pm
Also, regarding the "at the point of a gun" comment, this is absolutely true. If you're in violation of IRS law, how do they enforce them? With guns. The government gets what it wants because it is better armed than the populace. If you don't agree to go with them to be incarcerated, they will brandish weapons, threaten you with weapons, and finally will use weapons. So yeah, laws are enforced at the point of a gun. Just like taxes are collected....
Good Grief Y'all January 8, 2013 at 06:41 pm
Karsten, who made you the King of all Patch threads? I don't care whether you take me seriously, but it is not for you to decide whether others do. Thought you were all about freedom? The law is the law. You don't like it, fine, break it and see if you like the punishment better than compliance. You don't get to choose which laws you get to obey without facing consequences. The guns don't come out unless you're a fugitive. Good citizens don't have to worry about govt. use of guns against them until they break the law. Well, there are some accidents, and there's war. That "point of a gun" in reference to legal taxes crap is what is ignorant.
Karsten Torch January 8, 2013 at 07:45 pm
Wow. "King of all Patch threads." Cool new title, thanks for the moniker...
"The guns don't come out unless you're a fugitive. Good citizens don't have to worry about govt. use of guns against them until they break the law. " So what you're saying is good little citizens follow the laws and don't question the status quo, right? Because to do so means that you're a bad person. Got it. Just because a law is a law does not make it a just law. Or a good law. And the government gets to enforce its bad decisions "at the point of a gun." It's up to us as citizens to question the government. It's our duty, actually. As Americans. We don't have that right just because somebody thought it would be a neat idea to be able to say whatever we want to say. It's so that we will question our leaders and keep them on the correct path, whatever that may be. So if they pass a law that is silly, such as, for example, forcing a company against its religious beliefs to supply something at its cost, then it is the duty of that company to stand up and refuse to comply. That is what America a great country. Not the over-indulged government arbitrarily passing laws because it thinks it knows what's best for us.
Good Grief Y'all January 8, 2013 at 08:03 pm
Settle down, Karsten. I didn't anoint you. I asked you b/c of the comments you make declaring this or that of another poster, mind reading, etc. And you're quite proficient at twisting someone else's words or inserting them where they weren't. Example:
"So what you're saying is good little citizens follow the laws and don't question the status quo, right? Because to do so means that you're a bad person. Got it." Nope - not at all what I said. When good citizens follow the law, then no guns are pulled. You can question all you want, campaign against, protest, petition. But until the law is changed, you must obey or suffer the consequences. Laws are challenged all the time, which is why the courts stay busy. That's also our right. But until the law is struck down by the courts or amended or repealed, it is the law. Your opinion on the law doesn't negate it or make it unenforceable. That's pretty simple. I think Grant is right, you do have a problem with logic. I'm not sure if it's that you go around in circles or you're in a spiral. You make it way too hard on yourself. I think you have a distorted view of America.
Karsten Torch January 8, 2013 at 08:23 pm
That's fine. Accuse me of not listening or talking in circles. But I've noticed that you're not really paying attention to what I say, either.
What I said was, "If you don't agree to go with them to be incarcerated, they will brandish weapons, threaten you with weapons, and finally will use weapons. So yeah, laws are enforced at the point of a gun." And this is true. I never said that you should disobey the laws. I said that IF you did, then... This is a little different from what you said. And it doesn't make my statement untrue - in fact it goes along with our premise that we either follow the law or we face the consequences. The same thing I'm saying. My point is the terminal point of those consequences involve federal authorities with firearms....
Good Grief Y'all January 8, 2013 at 08:49 pm
You know full well what that "at the point of a gun" phrase in reference to taxes is meant to imply - fear. You break any law - local, state, federal, and you obstruct justice, refuse to comply, yes, you may be facing a gun. The IRS is not going to come knocking at your door with a gun to do a tax audit. Lots of people have evaded taxes and still haven't seen a govt. gun in their face.
Karsten Torch January 8, 2013 at 09:27 pm
Of course they will. And those that have evaded taxes haven't seen a gun for one of three reasons - haven't been caught, went along quietly, or complied and paid what was owed. Any other options, the guns come out.
But that's not really the point. My point was that the threat of force is what ensures compliance. There's plenty of laws that I follow because I want to. Plenty I follow because I don't feel it's important enough to me to face the consequences if I don't. And others I choose not to follow, and I'll accept the consequences should I get caught. Just like everybody else.
Good Grief Y'all January 8, 2013 at 10:03 pm
Really, the IRS auditors carry? As a part of their job? You're something else, Karsten. The rest of what you said,? . . . you're belatedly agreeing with me.
You and Racer remind me of a couple of little boys walking around in their daddy's shoes. You should rethink that breaking the law stuff. You might come to regret that. If you break laws (dishonest), you probably lie (dishonest), too, so it's a wasted effort to take you seriously. Not like everybody else. That's delusional. That's a sad and risky way to make yourself feel better about something you must know is wrong.
Karsten Torch January 8, 2013 at 10:22 pm
IRS does carry. Not auditors, granted, but if you don't cooperate with auditors, who do you think shows up next? Please, think before you post.
So, you never speed? At all, not one little bit? Maybe especially on roads that you think the speed limit is a bit too low for? If you find $20 in front of a supermarket, you report that to the IRS? There's lots of little examples every day. But, if you don't, you don't. Good for you. I guess you are a good citizen. Oh, and illegal isn't the same thing as wrong. Wrong has to do with morals. I follow my morals every day. Even on things that aren't illegal that I still know are wrong. I don't always stop and ask myself "Would Uncle Sam want me to do this?" I stop and ask if God would want me to do something, and try to act accordingly. THAT is my center. Not government.
Good Grief Y'all January 9, 2013 at 12:34 am
Yes, I think before I post. And, again, you're just belatedly agreeing with me on the gunpoint-tax issue.
No, I don't speed. Learned that lesson a few expensive times a couple of decades ago. Speeding doesn't get you there any faster, in most cases. Have you ever noticed, driving along and somebody flies past you. You stay steady on the speed limit, and then you pull up right behind or beside the driver in a hurry at the next traffic light? And speeding is dangerous, especially in the digital age adding more distractions. Haha. This driving talk reminds me of that old, old song, "Keep your mind on your driving, keep your hands on the wheel, and keep your snoopy eyes on the road ahead . . . " I haven't been lucky enough to find money, but I believe I would probably donate it to the church or a charity if there was no evidence of its owner in the vicinity. I'm not perfect by any means, but if it's not mine I can't enjoy it. Report $20 to the IRS? It's a wash if you just donate it. I don't cheat on taxes. If you're constantly asking yourself if something is wrong and whether to do it, maybe you're conflicted. You're the one who said you choose which laws to break - your confession, not my accusation. God probably wants you to obey the laws. You're nothing if not persistent.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors. Write a new post... What's up? Make an announcement, speak your mind, or sell something
Sharon Swanepoel (Editor) June 19, 2013 at 09:16 am
David, it's still there we are just in the process of working out the bug on uploading photos toRead More articles that we authored (ugh!). I just didn't want to promote it and have people try and upload photos unsuccessfully. Depending on how long it takes to address this issue, I may keep June open through part of July - I hope not. If you have any photos you want to add, email them to me and I will upload them for you in the meantime.
Sharon Swanepoel (Editor) June 19, 2013 at 09:19 am
That is the strawberry fields. I have a picture of the strawberry fields between the welcome toRead More Loganville and welcome to Grayson signs that I will get up soon.
EMILY GOLDSTEIN June 18, 2013 at 09:49 pm
Rabies tag on dog leads to a disconnected owners number
Sharon Swanepoel (Editor) June 18, 2013 at 06:11 pm
Yea, sorry David. We are still dealing with some "issues." It rejected Jason's blog, andRead More none of us, not even our top regional editor, is being given authority to release it. Poor Jason, I know he so hates being rejected! And we hate it happening to him. The people not being "bugged" by technical issues, however, are reporting that it is super easy to use.
TheSkalawag June 19, 2013 at 08:10 am
I wonder. Will Patch restore the reply button and add a responded to your comment notification?
Sharon Swanepoel (Editor) June 19, 2013 at 09:21 am
Please keep these comments coming. We are forwarding all these issues to our production team. TheRead More ones that are most pressing are more likely to be addressed first. Once we have the initial roll out completed and working well, the tweaking will begin.
Karsten Torch June 18, 2013 at 12:39 pm
What's sad is that people will accuse you of needing a tinfoil hat because of this post. But weRead More are marching inexorably toward this end, the only thing we can really control is how quickly or slowly we get there.....
TheSkalawag June 18, 2013 at 08:29 pm
I don't think that Ray needs a tinfoil hat but I just don't see the inexorable march to theRead More dystopian world Ray is foretelling either. I do understand the gloom and doom outlook and I attribute that to the unrealistic quest for the Norman Rockwell version of life in America. That kind of life was made for tv. Life never really was like that. At least not that I remember anyway. And I would wager not for the majority of Americans.
Good Grief Y'all June 19, 2013 at 09:55 am
Ray was wearing his tinfoil hat when he wrote this. Yikes! America being dominated by fear andRead More repression is exactly what the progressives have been fighting against all along, especially so since 2007. Cynicism is creepy.
Sharon Swanepoel (Editor) June 18, 2013 at 03:05 pm
Tom, I will see if I can find the connection.
Sharon Swanepoel (Editor) June 18, 2013 at 05:51 pm
Good news! Her name is Izzi and she has been reunited with her owners.
Tom Laverick June 18, 2013 at 09:42 pm
Great News!!!!
flyinby June 15, 2013 at 08:34 pm
strikes me as more subversive attempts by perverted minds dedicated to influence all our childrenRead More with this sick mindset: http://larouchepac.com/node/11188 http://www.naturalnews.com/040744_euthanasia_children_mercy_killings.html http://www.lifenews.com/2013/06/06/sarah-palin-blasts-sebelius-for-denying-girls-lifesaving-lung-transplant/ http://cnsnews.com/blog/judie-brown/lives-unworthy-be-lived-and-polst http://endoftheamericandream.com/archives/the-elite-are-attempting-to-convince-us-that-killing-off-our-sick-grandparents-is-cool-and-trendy suicides higher than car crashes past few yrs http://www.dailymail.co.uk/news/article-2207089/56-million-suicide-prevention-programme-launched-study-reveals-Americans-lives-die-car-crashes.html http://www.theblaze.com/stories/2013/02/08/more-states-consider-legalizing-assisted-suicide-as-baby-boomers-age/
TheSkalawag June 19, 2013 at 08:42 am
I agree with Raven Nichols. I think that it is more important to find out the reasons WHY kids areRead More contemplating and committing suicide. GGY is right. It is a dark subject and off putting but the fact that kids are taking their own lives at such a young and tender age is an even darker subject that can't wait to be addressed until they are in college they may not make it that far. I disagree with Tammy in that I don't think girls have don't have a more drama in High School than boys. It's just drama over different things. And I don't think that the teacher was looking for objectivity but insight into the reasons for teen suicides. After all who would have a better understanding of the why suicides occur in teens than other teens. I applaud the teacher.
Good Grief Y'all June 19, 2013 at 09:49 am
I see your point Skalawag and I raise it. Maybe this would be a good CDC survey subject. ImagineRead More the backlash, though! I still think it's a dangerous topic as a class assignment. We probably already know the reasons for teen suicide. We do need better methods and awareness to identify those at risk.
Octo Slash June 14, 2013 at 12:18 pm
My kids drink coffee every morning because they need something to accompany their cigarettes.
Tammy Osier June 14, 2013 at 01:12 pm
Tr - the perfect diet - the Mediterranean diet has a lot of fish in it. Olive oils etc... OurRead More American diet has a lot of animal fat in it and look at us as opposed to other nations! Fish oil is brain food. A multi is good, but we should ask our pediatricians about adding fish oil to our kids' diets. We should get our (good) fats through diet. Good fats help vitamins go where they are supposed to and do what they're supposed to do.
Deedee June 15, 2013 at 08:12 pm
My grandma always drunk coffee all day and I started around 30 and I am no good without at least oneRead More cup a day but she always stated that we couldn't have any as kids because it will stunt our growth. I have always felt that there is something to many of those old sayings and did not let my son touch it.
Tammy Osier June 17, 2013 at 01:53 pm
DR, seems like an oxymoron doesn't it? I'd like to hear from someone who is actually from there toRead More find out their spin on why they even enter a contestant in the first place. It's my understanding that a woman that shows that much skin in public will be flogged or worse? Maybe democracy is taking ahold in some places, who knows?
Good Grief Y'all June 17, 2013 at 03:24 pm
I was wrong. Guys are interested pageants. You would no doubt be happy if the contestants justRead More wore the face shawl with their bikinis.
Karsten Torch June 17, 2013 at 04:30 pm
Couple of thoughts - One, why hold it in a land where there is going to be this kind of protest?Read More Just move it and don't worry about it. Other, I find it interesting how the Muslims want us to be understanding and inclusive of their beliefs, but don't even think they'll allow anything they don't agree with. Just a tad bit hypocritical...
R June 14, 2013 at 02:06 am
You mean the FEES don't you? Cause they aint taxes don't you know...
Bonnie June 14, 2013 at 11:50 am
I call it a "rainbow!"
M.K. Osborne June 14, 2013 at 03:30 pm
Fees is when its lightning too .
Mr. B June 13, 2013 at 01:29 pm
They're not Americans. They don't deserve to step foot on American soil.
Good Grief Y'all June 13, 2013 at 01:34 pm
Meh, a difference without distinction.
Good Grief Y'all June 13, 2013 at 01:37 pm
Huh, you learn something once in a while on Patch blog threads. I didn't know you must be anRead More American citizen to be tried and convicted of crimes against America . . . ;p I think John and Sarah could handle them . . . you betcha! They would probably beg to be sent back to Gitmo. LOL