The national debt, at $19.97 trillion and climbing, does not tell the real story behind America’s true national debt, which is properly identified as the “fiscal gap.”
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The Fiscal Gap Jumped 30% – and Nobody Noticed
Investors Business Daily, March 10, 2017 – Excerpts:
Given the tumultuous news cycle of the past month I’d understand if you haven’t had a chance to read the Treasury Department’s latest 266-page Financial Report of the United States Government (FRUSG)….
The fiscal gap is a key snapshot of the government’s financial health that estimates the tax increases and spending cuts required to maintain the current ratio of national debt to GDP. That’s a more meaningful number than the national debt alone because it also takes into account money coming into the government’s coffers, and the implications on future public policy. If the government were an individual, that would be akin to comparing a person’s credit card bill with their pay stub.
The two chief culprits responsible for the rising fiscal gap are Social Security and Medicare. For years, politicians have promised these politically popular benefits without increasing the taxes necessary to fund them. Not increasing taxes correspondingly has led to massive underfunding.
Social Security and Medicare expenses continue to rise year after year at the same time that less money is flowing into the system, which increases the fiscal gap. Entitlement programs represent the federal government’s largest expense (far exceeding defense spending), but for political expediency their costs are not accounted for in the national debt.
If entitlement obligations were counted, the true national debt figure would actually be around $100 trillion, as opposed to the government’s current $20 trillion figure. The more holistic $100 trillion number breaks down to a $308,000 burden for every American taxpayer. These bills are real, and they’ll come due one day.
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And how are individual states faring on the fiscal front…?
“From Horrific To Catastrophic”: Court Ruling Sends Illinois Into Financial Abyss
“Friday’s ruling by the U.S. District Court takes the state’s finances from horrific to catastrophic,” Comptroller Susana Mendoza, a Democrat, said in an emailed statement after the ruling. “Payments to the state’s pension funds; state payroll including legislator pay; General State Aid to schools and payments to local governments will likely have to be cut.” ZeroHedge – July 1, 2017
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Chris Christie Announces New Jersey Government Shutdown, Orders State Of Emergency
Illinois, Maine, Connecticut: the end of the old fiscal year and the failure of numerous states to enter the new one with a budget, means that some of America’s most populous states have seen their local governments grind to a halt overnight until some spending agreement is reached. Now we can also add New Jersey to this list. ZeroHedge – July 1, 2017
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Connecticut Gov. Signs Exec. Order Taking Over Spending After State Fails To Pass Budget
Connecticut’s General Assembly failed to pass a version of the state budget on Friday, forcing Democratic Gov. Daniel P. Malloy to sign an executive order to take control of state spending. ZeroHedge – June 30, 2017
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Maine To Begin Shutdown After Gov. LePage Says He Won’t Sign Budget Bill
The first U.S. state to shut down heading into the new fiscal year may not be Illinois, not Connecticut, but… Maine. ZeroHedge – June 30, 2017
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Add to this growing list of states with growing budget shortfalls: Massachusetts, Kansas…
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Does our Federal Government have any credible plan to deal with our massive debt overhang? Answer: No
Do any of our problem states have any type of credible plan to restore fiscal health? Answer: No
Is there a credible solution for this gargantuan debt dilemma? Answer: Yes.
$1.02 trillion annual budget surpluses yearly 2017-2021: The Leviticus 25 Plan
And massive tax revenue gains and reduced entitlement costs for state governments.
The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens. It is a comprehensive plan with long-term economic and social benefits for citizens and government.
The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.
The Leviticus 25 Plan 2018 – $75,000 per U.S. citizen