Debt

While those on the right will not admit it, the facts are that the largest part of the debt incurred by our government was caused not by spending but by a decrease in taxes.  As of today, while the un-paid-for wars in Iraq and Afghanistan have cost taxpayers $1,415,000,000,000, the Bush tax cuts resulted in a loss of revenue in the amount of $2,800,000,000,000, almost double the costs of the wars.  The vote in congress averting the “fiscal cliff” will restore only $600,000,000,000 of the tax cuts so there is a way to go before we can return to a surplus enjoyed during the years of Bill Clinton.  In order to come close to balancing the budget it will be necessary to raise additional taxes and to also cut spending.  One thing to keep in mind, however, is as of today, neither Social Security or Medicare have added to the deficit except to the extent that Congress is forced to pay back either program where surplus funds for either Medicare or Social security were used for the general fund.  Unfortunately, while the purpose of the surplus in either program was to earn interest by investing that surplus, many in Congress are willing to “welch” on the deal made by Congress to borrow, repay, and pay interest on those borrowed funds.  This is the Republican “sign and drive” program where you sign for the car, drive it away, and then when payments become due claim the car is no good and you don’t want to make any payments.  Only in America is this possible.  The conservative math is not 1.4 + 2.8 = 4.2.  Conservative math really should be $1.4 trillion  + $2.8 trillion = $6.3 trillion.  The $2.1 trillion which might appear to be an error if you are a math major is actually interest, the costs to taxpayers when Congress decided to spend money they did not have.  Of course, this also assumes that Congress will raise the debt ceiling and allow the country to make payments on the debt previously committed.