Office of Management & Budget

Fellow Americans turn on your computers and check the following Tables at the Office of Management and Budget (OMB) website.

Here are some interesting numbers from the Historical Tables at http://www.whitehouse.gov/omb/budget/Historicals . Check them for yourself.


Table 2.2 -Percentage Composition of Receipts by Source. Year 2010
Forty percent (40%) of total receipts is from Social Security and Retirement receipts. Forty-one (41.5%) is from individual income taxes. Corporation taxes, 8.9%, Excise taxes, 3.1% and the balance 6.5% is Other.

Table 2.3 Total 2010 Receipts are only 15% of GDP.

Table 3.1 Outlays by Super-function and Function Outlays, as a percentage of GDP for 2010 are 23.8%
On that same Table, Social Security is lumped into the Function-Human Resources. Human Resources, made up of (Health, Education, Medicare, Income Security, Social Security and Veterans Benefits and Services) is 16.4% of GDP. These are the Entitlements that we’re told must be cut.

With receipts being only 15% of GDP, we have an income crisis with Outlays being 23.8% of GDP, but
they want us to believe that Social Security Outlays are the major problem. Social Security has, since 1983 provided huge surpluses that funded the Budget, thereby hiding the huge deficits that were occurring. The Reagan’s Administration raised the SS tax 3% in 1983. A huge tax on the Middle Class.
Remember Table 2.2, In 2010 Social Security taxes are 40% of all Receipts.

Crisis number 1 is that the Government must begin paying back the Social Security surpluses, it spent, from general revenues.

Crisis number 2 is that Receipts don’t equal the Outlays even if we remove Social Security (Receipts and Outlays) from the Budget.

Their Solution: Cut Entitlements. But they would not cut the Social Security tax because they need that money to run the government.


Table 7.1 Federal Debt at the End of Year 2010-As a percentage of GDP

The Federal Debt is 93.2 % of GDP for year 2010- But 31.1% of that debt is what we owe ourselves in loans from Social Security and other Retirement and Trust Funds. Another 5.6% is owed to the Federal Reserve. The remaining 56.6% is owed to Others.
So 39.4 % of the Debt is debt that the politicians want to just evaporate. If they could wipe that portion off the books, the Debt would not look so bad. That was exactly what they wanted to happen when the they kept trying to convince us that this debt was just IOUs and that there was no Lock Box. Well, those IOUs are Treasury Bills just like most of the Debt and are an obligation to future retirees and Trusts, like the Highway Trust Fund. This is the Table quoted when they say that the Debt will soon be 100% of GDP. What does that prove?

Remember if you repeat a lie again and again, the Public will believe it.
When you heard repeated “Its Your Money, they didn’t mention “Its Your Debt”. The money the IRS sent you was from projected future revenues . These tax refunds were just added to Your Debt when actual revenues fell from the bad economy and unfounded wars.
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The Politicians will keep beating the drums that the crisis is Entitlements and the Media will keep repeating it until the Public believes it. Sounds like the beating of the drums for war against Iraq.

Will we ever learn how propaganda works?
Alice Hanke