Spend, spend, spend
The federal government through March collected a record $736.3 billion in individual income taxes, yet spent $599.7 billion more than it took in. What’s wrong with this picture?
The record tax collection was for the first six months of fiscal 2018 – from Oct. 1, 2017 through March 31, the Treasury says.
You would think, with the national debt climbing above $21 trillion, Congress would wake up to the fact that we are burying our grandchildren in debt. When will the members of that august body put the brakes on spending? At some point, the nation will be crushed by the burgeoning debt.
Debt has real consequences. For instance, as it increases, and government bonds compete with corporate bonds for investors’ money, interest rates are pushed up. If the government takes up a larger share of available capital, there is less for the private sector.
At some point all of this will come home to roost – and it will not be pretty.
If the debt balloons and is unsustainable, government will face hard, unpopular choices, including defaulting or enacting onerous austerity measures to pay the debt payments.
It would be far, far easier to responsibly deal with the problem now. Kicking it down the road, the current congressional strategy, will not work.