Understanding our National Debt, Keeping it Simple
$14,574,607,940,062.25 on August 3, 2011 was the total national debt the day after Barack signed the bill extending the debt limit. The current Debt Limit was increased from $14.294 trillion to $14.694 trillion effective August 2, 2011. As of July 31, 2011, the average interest rate on all public debt was 2.965%. $36.3 Billion each month is needed to pay the interest.
Federal Deficit is estimated to be $1.6 Trillion for 2011. The federal government would need to take in another $133 Billion each month to meet all the spending and debt obligations.
The population of the US is 311.4 Million. Every man, woman and child would have to be taxed $427.00 each month or $5,124.00 each year, more to enable the government to break even.
Take a look at family income. In 2008, 20.48 Million Americans made $100,000 or more per year. If the government only taxed this group to break even, each family would have to pay an extra $6,494.14 each month, ($77,929.69 a year). That would be too much so lets raise the tax on just the richest.
8.52 Million Americans made $150,000.00 or more per year. Why not ask them to pay an extra $15,610.33 each month, ($187,323.94 a year). We have a problem here.
Well lets only raise the taxes on the ones making over $200,000 a year. 3.956 Million would need to pay $403,437.82 extra a year. Not possible either. How about we only tax the richest?
Would the richest men in the US please step forward?
Lets let them keep $5 Billion for all the work or good fortune they have had.
Bill Gates, please donate 49 billion.
Warren Buffett, please donate 40 billion.
Larry Ellison, please donate 22 billion.
Christy Walton & Family, please donate 19 billion.
Charles Koch, please donate 17 billion.
We have just covered the first month deficit.
Will the next 49 richest please donate all you have over five billion? This would be 233 Billion and would get us through two more months! We have nine more months left at 133 Billion per month to go. Well maybe one billion is enough for anyone, so why not take the rest. This would give us about 500 billion more for the deficit leaving us short about 600 billion for just the first year.
Lets ask the richest in the rest of the world for assistance!
Who can we find to pay the deficit for next year?
I think that you get the picture, there is no way to collect enough taxes to prevent a deficit.
We will have to cut back on our spending and social programs.
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