Skip to comments.Federal Tax Revenues Have Exceeded Interest Payments 20-Fold—Since U.S. Hit Debt Limit
Posted on 07/11/2011 7:34:59 PM PDT by rhema
President Barack Obama said last Friday that the administration and Congress needs to cut a deal by Aug. 2 to increase the legal limit on the federal debt to make sure that America does not default.
Yet, the actual accounting done by the U.S. Treasury Department shows that federal tax revenues have exceeded interest payments on the federal debt by 20-fold since the Treasury announced on May 16 that the federal government had hit the current legal limit on the national debt.
In fact, since the government hit the debt limit on May 16, the ongoing flow of federal tax revenue has been more than sufficient to cover the combined costs of federal spending on interest payments, Medicare, Medicaid, Social Security, the Veterans Affairs department and federal workers wages and insurance benefits (including wages and insurance benefits for military personnel).
Specifically, according to the Daily Treasury Statements, as of the close of business on May 16, the federal government had taken in $1.333454 trillion in tax revenues since the beginning of fiscal 2011. By the close of business on July 7, tax revenues for fiscal 2011 had grown to $1.629630 trillion. Therefore, between May 16 and July 7 the federal government took in a total of $296.176 billion in new tax revenue.
In that same time period, total interest payments on the national debt equaled $14.632 billion.
Thus, the new tax revenue of $296.176 billion the federal government took in between May 16 and July 7 was enough to pay the federal governments $14.632 billion in interest obligations during that period 20 times over.
Also during that same period, the federal governments combined expenditures for interest payments on the national debt, Medicare, Medicaid, Social Security, the Veterans Affairs department and federal workers wages and insurance benefits equaled $270.151 billion.
Thus, since hitting the legal limit on the federal debt on May 16, the federal government could have spent its $296.176 billion in new tax revenues to pay for its combined $270.151 billion in expenses for interest, Medicare, Medicaid, Social Security, Veterans Affairs and federal workers wages and insurance benefits and still had $26.025 billion in additional tax revenue to spend on other government activities.
For another $2.198 billion, for example, the government could have covered all Justice Department programs between May 16 and July 7thus bringing its surplus revenue for the post-debt-limit period down to $23.827.
For another $11.233 billion, the government could have covered all its Housing and Urban Development programs between May 16 and July 7thus bringing its surplus revenue for the post-debt-limit period down to $12.594 billion.
For another $6.988 billion, the government could have covered all its Federal Highway Administration programs between May 16 and July 7thus bringing it surplus revenue for the post-debt-limit period down to $5.606 billion.
What it could not have done between May 16 and July 7, using the tax revenue that came in during that period, was pay the interest on the debt, maintain all the big entitlement programs (Medicare, Medicaid, and Social Security), plus veterans benefits, plus all wages and insurance benefits for federal workers (including military personnel) AND paid all the money that the government planned to pay Defense Department vendors.
During the period of May 16 to July 7, the government paid $56.734 billion to Defense vendors, according to the Treasury Department. So if, from May 16 to July 7, the government had added the $56.734 billion paid to Defense vendors to the $270.151 billion in combined costs for interest, Medicare, Medicaid, Social Security, Veterans Affairs and federal workers wages and insurance benefits, the government would have had total costs of $326.885 billion for the period.
Given that it took in $296.176 billion in tax revenue for the period that would have put the government in the red by $30.709 billion.
Still, $30.709 billion borrowed over a period of 52 days works out to a rate of $590.55 million in borrowing per day--or $188.992 billion in borrowing per year.
That beats what the government is doing now by well over $1 trillion. According to the latest estimate of the Congressional Budget Office, this years deficit will reach $1.399 trillion.
The calculations in this article are based on numbers reported in the U.S. Treasury Departments Daily Treasury Statements for May 16, 2011 and July 7, 2011.
So, the August 2nd deadline is a lie then?
Well, it will be Ramadan.
How about money for ACORN? Do we have any money for ACORN? You know we gotta buy those votes!
Well, I think they still need another $1 trillion for ACORN, NPR, Planned Parenthood, SEIU, and a few other assorted key players.
There’s something about the debt limit that REALLY affects people...maybe, just maybe, the Republicans will hold their ground.
...even if giving Obama the store the last few times weakened their hand.
The Aug 2nd deadline is a scam..........Nothing will happen, just like Y2K........
Just one of the facts that the republicans should have been shouting out for the last few months. But instead of that our stupid house leader is talking about how worried he is that the US will default. He knows better, but his real agenda is hidden. And most of the sheeple don’t have a clue.
Since Obama likes to talk about “shared sacrifice,” my question is, when are Obama and his fellow Federal Employees going to start Sharing Sacrifice? How about rolling back last year’s massive increases and laying off 9.2% of THEM????
And cut Obama’s jet fuel allotment to 5% BELOW the previous administration (just to show he’s more serious than George W).
Its late and I’m tired but where in yr article do you mention the govt using federal worker retirment savings to fund government operations?
I believe since turbo tax timmy tapped the debt limit, he has blown through about $200 Billion from the civil service/military retirement savings plan TSP “G” fund (401K equivalent, a contributory fund paid in by federal workers and military for retirement)
Our civil service/military retirement savings the govt seized is being replaced by IOU’s, to be paid back with interest when the debt ceilign is raised. It will be all spent, I believe, by about...August 2.
Ho Ho Ho
Hussein claimed recently “only” $666 billion of the PORKulus money was spent. So let’s cancel the remaing amount.
The US government has no real concept of how to account for anything. (e.g. See their definition of “investment”)
Not paying DOD vendors is not a good solution. However, the info that we would be only 200 billion or so in the red instead of 1 trillion 200 billion in the red is amazing.
One has to ask who is getting the other trillion dollars, if all interest, all entitlements, all military and fed workers, and all the major departments have their bills paid with only a 200 billion per year deficit.
The polidiots, all of them, make it sound as if we cannot make our debt payments if we don’t take on more debt to do so.
What they really are saying is that unless we take on more debt they cannot spend more money on social projects.
I have had enough of this government.
I would think one reform that would pay huge dividends would be to eliminate the budget practice of automatic increases every year. IOW, go to a strict baseline budget where a dept gets 100x one year and that is their budget the next year. I think another reform is to make govt employees pay into Social Security and change their pensions from defined benefit to defined contribution.
We will see. If the Pubs don't rule the day they won't win the White House.
The pubbies need a commercial spelling out that we CAN pay everything with the income we have. It needs to be clear, concise, and immediate.
Otherwise, they are idiots....which I suspect. They love to react instead of act. They love to let the dems define the issues, create negative impressions, and then months later try to regroup.
Be nice if they were pro-active for once.