I am
angered at the likelihood of tax increases on our citizens for no other reason
than Congress has for years failed to live within its means and now needs more
revenue to pay for services it has no business providing in the first place.
At the
same time, I am hopeful that this event will trigger a reduction in federal
spending on state programs.
In 2011,
state spending reached an all-time high of $16.6 billion, with nearly half of
that coming from the federal government in the form of grants and discretionary
spending.
In case
you haven’t been paying attention, the federal government is broke!
Approximately $1 out of every $2
the federal government spends is borrowed from other nations. Our current
federal budget deficit – the difference between what we received in revenues and
spent – is more than $1 trillion. Our current national debt – the amount we have
borrowed and must repay – is now more than $16 trillion.
But that
number is only partially true. Because of an accounting gimmick where
governments pretend future liabilities don’t exist and, therefore, don’t account
for them, most Americans don’t know how big the problem really is. The amount
typically reported – more than $16 trillion – is actually only the surface of
our debt.
According to a June 2010 article
in National Review, America’s total debt – when accounting for unfunded
future liabilities in Medicaid, Medicare and Social Security and state and local
bond debt – exceeds $130 trillion.
Take a
moment for that to sink in. $130 trillion.
Now
consider this: Currently, there is only approximately $60 trillion in
circulation throughout the entire world.
When you consider that our federal government owes more than twice the
amount of money that actually exists throughout the world, shouldn’t you
question why the same government continues to borrow money and spend it on
marginally useful state programs?
If no deal is reached, there will be some relatively minor cuts in
federal spending.
According to
the Oklahoma Office of Management and Enterprise Services, federal spending in
Oklahoma will be reduced by approximately $137 million as a result. I recognize
that is only a drop in the bucket compared to nearly $8 billion in annual
federal spending in Oklahoma, but every little bit counts. After all, they are
your hard-earned tax dollars.
The truth is,
the awareness and discourse we are having as a nation about federal spending
that has consumed us as we head toward the fiscal cliff is actually more helpful
that the minor cuts in federal spending we will see if we actually go over
it.
If there is a
silver lining in this mess, I believe that is it.
It is an
honor to serve as your state representative. If you ever need anything, call my
state Capitol office at (405) 557-7349. Have a Happy New Year!
