not really a coup, its a default. US government is already using pension fund money to pay its bills since early January (aka special measures), the interest on their national debt is already more than they collect in taxes.
Neither of those numbers include any state revenue or tax.
US collects about $12Trillion in taxes total (30% ish of GDP), under $2trillion of that is given to the federal government for medicare, medicade and the military, they spend more than $5trillion, which is what they spend on medicare, medicade the military and the interest on the $37Trillion debt they have accumulated spending more than they were given by the states for medicare medicade and the military - mostly bank and insurance fund bailouts to prop up the failed US financial system, adding about $3trillion to the federal debt each year, which is why it has gone from $30trillion at the end of 2022, to $37trillion now.
Getting downvoted because I do my own research instead of believing the latest gormless chatbot, that's new.
Of that, individual income tax was about $2.4 trillion, payroll tax was $1.7 trillion, corporate income tax was $530 billion, and there's about $253 billion of "other."
Fortunately Trump hasn't destroyed revenue reporting yet. This contains info for FY2024:
https://fiscaldata.treasury.gov/americas-finance-guide/gover...
Is bad math.
Or if you spend $5.5T a year and your debt increases $3.5T you had $2T in revenue.
But here you go Medicare 2023 https://usafacts.org/articles/how-much-does-the-government-s... $848.2 billion
Medicade 2023 $606 billion https://www.kff.org/medicaid/issue-brief/medicaid-financing-...
Military 2023 https://usafacts.org/articles/how-much-does-the-us-spend-on-... $820 billion
848+620+820 = $2.2T
National debt https://www.investopedia.com/us-national-debt-by-year-749929... $30,928 end of FY 2022 $33,167 end of FY 2023
How exactly are you saying they spent 2T more than they collected in revenue again? Is this a Joe Biden forget where he put it or smth?
Meanwhile Debt now https://www.usdebtclock.org/ $36.4T =$33,167 end of FY 2023, spent $3.3T on interest, Collected and spent $2.2T on medicare,medicade and the military. = $33.1 +3.3 -2.2 +2.2 = $36.4T
good luck have fun. Im out. enjoy your fantasy economics for the few months it has left. Last group of federated states with group finances in a similar position was the USSR circa early 1991, pop quiz, can you guess what I think happens to the US next?
Good luck buddy.
That was kinda my entire point, Its on its way back to at least the 15% of the 1980s.
That is GDP times taxation as a % of gdp
roughly $36T times 30%
Precisely what that is doesnt matter, could be $10T, could be $20T
The federal government collects its tax from the states which it does through programs approved in congress.
Those programs are medicare, medicade and military spending + a few hundred billion total in scraps like the FAA or NASA. in total that sums to around $2T, which is all the states are obliged to give the federal government from the taxes they collect, if they dont like it they can choose the nuclear option and simply exit the union - California has a reasonable campaign long time ongoing to do exactly that called calexit - although right at this moment it lacks momentum. According to wikipedia there are growing movements in Alaska, California, Texas, Louisiana, Florida, and New Hampshire to secede.
Those movements will grow very very quickly when the states are actually presented with the now inevitable choice of doubling what they give the federal government while the federal government stops spending on pretty much every federal program - which is the only way the federal government can sustain paying its bills now the interest on their debt is larger than they take in revenue.
You’re aware that income tax, corporate income tax and payroll tax are paid directly to the federal government from individuals and companies right? The states don’t collect on the federal government’s behalf.
>nuclear option
There is no nuclear option. The country decided that 160 years ago.
My understanding is that's nowhere near enough.
The USA deficit is $1.8 Trillion a year with $30T total. The net worth of all USA billionaires is around $4.5T. So 5% would reduce the deficit by 10% until the billionaires wise up and move their wealth out of the country.
Even confiscating it all in a one-off pile reduces the national debt by about 15%.
https://en.wikipedia.org/wiki/Starve_the_beast
It's pretty clever in its cruelty: Once you have cut taxes, it essentially doesn't matter which party wins the next election: The have to gut expenditures anyway.
See the current Labour government in the UK, who would very much like to spend money on government initiatives but can't because the Tories made sure there was nothing left.
Elect US senators and Representatives to go to the floor and debate about individual programs on CSPAN so people can actually hear arguments about it.
This is why, for example, the ISS didn't get cut, but the SSC did. Both were huge science programs that cost tens of billions of dollars and Clinton's administration explicitly wanted to keep both programs but the voting public, through senators and house reps, including democrat members of both forced them to pick only one.
Uh, we didn't. Even in the “balanced budget” years 1998-2001, the debt increased.
Unless you mean reducing the debt to GDP ratio, which we did in parts of the 1990s, and some periods since, but that's not much explained by the spending control methods you discuss, but by growing the economy.
Four; federal fiscal years 1998-2001, had a federal surplus, per OMB figures: https://fred.stlouisfed.org/series/FYFSD
But, through that entire period (almost every quarter, and definitely every year) the federal debt still increased: https://fred.stlouisfed.org/series/GFDEBTN
So, not really a demonstrated playbook to reduce the debt.
OTOH, for a longer period in the 1990 (starting about 1995), in the last half of the long and strong 1990s expansion, the arguably more important debt: GDP ratio was going down. The 2010s might have seen something similar -- it had roughly, though more noisily than in the 1990s, plateaud before the Trump tax cuts, and might have dropped even with similar spending patterns without them.
But, yeah, the secret there is largely strong economic expansion, though you can still screw it up on the fiscal policy side.
I said we have a playbook to reduce the US debt. A more correct statement would have been "We already have a playbook to audit and reduce US government spending".
It is NOT done by giving one of the least competent ketamine junkies in front of a computer with a list of budget item names and tweeting the ones he finds most offensive.
Air that shit in congress where it can face PUBLIC scrutiny and debate, not in a forum literally controlled by the guy doing it. That's how we got rid of the unfortunate boondoggle SSC and kept the better ISS.
The fed reports a doubling of tax receipts from 1990 to 2000. There has been at least another doubling since then. Because Trump is a corrupt grifter and a shill for certain corps, he has already floated a plan to cut more taxes. Trump supporters do not want to bring taxes back up on companies apparently. They'd rather keep seeing their own taxes go up.
So they're going to cut stuff. Probably good stuff, probably important stuff. I'm saying there is a demonstrated productive way to cut stuff in the US system while limiting the pain and cutting of actually important stuff and that's what they would be doing if they actually wanted to fix any problem
Also I'm pretty sure the GAO has a standing list of things to do. That would also be better than this.