Trying to get a handle on what the administration’s proposed budget really means to individuals is not at all easy. Indeed, for a non-financial expert, it may well be futile to try.
But, futile or not, here are a few immediate reactions.
First, the budget is much bigger than the last one. Personal income taxes are going up $175 billion, corporate income taxes are rising $117 billion, and, on the other side, cuts in discretionary spending amount to $21 billion.
As I figure it, that’s $292 billion going up and $21 billion going down.
One other figure is that for the fiscal 2011 budget, the national debt per citizen would be $34,000.
Anyway you look at it, these are all immense figures.
By one analysis that I read, all of this will result, assuming that the Congress endorses the budget, in a budget deficit $1.6 trillion this year, $1.3 trillion next year and $8.5 trillion for the next ten years combined.
Where is the money coming from? Most will have to be borrowed, from sources here and abroad. The rest comes from taxpayers.
And who will lend us the many trillions?
Making sense of all this is beyond me. Realistically, how much can be borrowed?
It is simply my hope that the Congress examines all facets of the budget extremely carefully. My basic thought is that the problem of a record deficit, and the risk that raises the possibility of runaway inflation, is so much of a threat to our economy there has to be more emphasis on spending less.
It sounds a little simple to say it, but that is what any family, or any business, would have to do — spend less.
