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To amend Chapter 3 National Home for Disabled Volunteer Soldiers: Free Disability Insurance Reallocation Tax (DIRT) Act: To immediately amend the DI tax rate from 1.80% to 2.30%, from 0.90% to 1.15% for employees and from 0.90% to 1.15% for employers under Sec. 201(b)(1)(S) of the Social Security Act 42USC(7)II§401 and amend the OASI tax rate from 10.60% to 10.10%, from 5.30% to 5.05% for employees under 26USC(C)(21)(A)§3101 (a) and from 5.30% to 5.05% for employers under 26USC(C)(21)(A)§3111 (a) to avoid depletion of the Disability Insurance (DI) Trust Fund in 2016 without increasing the overall 12.4% OASDI or 15.3% OASDI and Hospital Insurance (HI) tax-rate under 26USC(A)(2)§1401 beginning October 1, 2015. To amend the DI tax rate again in 2018 to 2.20% from 2.30%, from 1.15% to 1.10% for employees and from 1.15% to 1.10% for employers under Sec. 201(b)(1)(S) of the Social Security Act 42USC(7)II§401 and amend the OASI tax rate from 10.10% to 10.20%, from 5.05% to 5.10% for employees under 26USC(C)(21)(A)§3101 (a) and from 5.05% to 5.10% for employers under 26USC(C)(21)(A)§3111 (a) without increasing the overall 12.4% OASDI or 15.3% OASDI and Hospital Insurance (HI) tax-rate under 26USC(A)(2)§1401 to maximize efficiency until a deficit appears in the OASI Trust Fund in 2019. Without Income Limit Law (WILL) Act: To abolish the maximum taxable limit on DI contributions on January 1, 2016 and OASI contributions January 1, 2017 and repeal Adjustment of the contribution and benefit base Section 230 of the Social Security Act 42USC(7)§430. To require the Social Security Administration to pay for SSI Costs beginning January 1, 2017.  To share profits in excess of social security program costs to the general fund of the U.S Treasury on a sliding scale beginning year end 2016 DI 50/50 with the  USPS, and OASI 10/90 to eliminate the federal budget deficit. In 2020 OASI would share at negotiated rates an estimated 25/75, by 2025 OASDI would share 50/50 and by 2030 OASDI would save to pay for the peak in costs of Baby Boomer generation in 2035 that might raise the overall OASDI tax rate from 12.4%. To limit Health and Human Services spending to less than $1 trillion. To require the Department of Agriculture (USDA) to hire an actuary to sustain Supplemental Nutritional Assistance Program (SNAP) growth in an annual report to Congress. To require the Veteran’s Administration (VA) to hire an actuary to account for service member contributions and matching funds in an annual report to Congress. To replace welfare Administrative Law Judges (ALJs) with licensed social workers and non-social worker representatives. To provide Medicaid for free to everyone earning less than 150% of the poverty line and open Medicaid to reasonably priced premiums for everyone else. To prohibit medical billing to nationalize health insurance assets. To ratify ILO Conventions 132, 156 and 183.  To levy a 1% UN FICA and corporate income tax for world-wide welfare in 2020.

 

Be the Democratic and Republican (DR) two party system Abolished, referred to the Actuary, Commissioner and Trustees (ACT)

 

1st Ed. 2003, 1st15 September 2004, 2nd 1 June 2005, 3rd 18 June 2006, 4th 17 June 2007. 5th 12 June 2009, 6th 31 July 2010, 7th 17 August 2011, 8th 14 July 2012, 9th 26 July 2015.10th 7 September 2015

 

1. Chapter 3 National Home for Disabled Volunteer Soldiers, Title 24 US Code Subchapter V Battle Mountain Sanitarium Reserve, §151-154 to settle bona claims to land and the private exchange of lands under §153 and to issue an up to $1,000 fine to redress the unlawful intrusion of reserves or violation of rules and regulations under §154 are preserved.  To avoid burdening the U.S. Supreme Court with the responsibility for criminally convicting the SSA Actuary, Commissioner and Trustees (ACT) in 2016 for deprivation of relief benefits under 18USC§246 when they conspire to cut DI benefits to 80% because the DI Trust Fund will be completely depleted under “current law”, whereas: (a) the SSA Actuary has not gotten right FDR’s infamous “pain the OASDI tax rate calculus”, that takes a week to differentiate the first time, the Chief Actuary has responded to the President in regards to the OASDI reallocation question with a common wrong answer – 2.7% - October 1, 2015 is not too late for Congress to get the OASDI FICA tax rate right to avoid depletion of the DI Trust Fund in FY2016; (b) SSA administrators are peculiarly obsessed with continuing their $666 persecution on DI beneficiaries in violation of the 42 month limit (Revelation 13:10) when a beneficiary receiving $600-$699 a month should automatically receive an increase to $700 plus annual COLA thereafter and the 6 year term of the Social Security Administration Commissioner needs to be reduced to 2 years under Section 702 of Title VII the Social Security Act 42USC(7)VII§902(a)(3) as was the limit in nature for anyone but the Creator, Health, Education and Welfare Secretary Arthur J. Altmeyer, who served six years, from July 16, 1946 to April 10, 1953; or the longest serving commissioner Robert M. Ball who served nearly nine years from April 17, 1962 to March 17, 1973 (c) Congress and other rich taxpayers should not be compelled to contribute their incomes above $118,500 (2015) to the attached, but separate roll-call vote, on the 130% increase in tax-base that would be derived from the OASDI Without Income Limit Law (WILL) and shared with the U.S. Treasury, until the SSA Actuary has calculated the baseline in dollar amounts for the optimal OASDI reallocation tax rate, projected to pay benefits until 2020, at no cost to taxpayers, free.

 

Current and Proposed Federal Insurance Contribution Act (FICA) Rates

 

Current 

OASI

DI

OASDI

HI

Total

Employees

5.30

0.90

6.20

1.45

7.65

Employers

5.30

0.90

6.20

1.45

7.65

Combined total

10.60

1.80

12.40

2.90

15.30

2016

OASI

DI

OASDI

HI

Total

Employees

5.05

1.15

6.20

1.45

7.65

Employers

5.05

1.15

6.20

1.45

7.65

Combined total

10.1

2.30

12.40

2.90

15.30

2018

OASI

DI

OASDI

HI

Total

Employees

5.10

1.1

6.20

1.45

7.65

Employers

5.10

1.1

6.20

1.45

7.65

Combined total

10.2

2.2

12.4

2.90

15.30

 

2. Social Security is the primary social safety net for the poor, aged and disabled.  One-in-six Americans, 55.4 million receives a Social Security benefit.  In 2011, 44.8 million people received OASI benefits, 15 million received DI and/or SSI benefits, and 48.7 million were covered under Medicare.  Social Security is virtually the only income for about one third of senior citizens and 90% of senior citizens receive benefits.  In 2010 DI paid 9.9 million beneficiaries and SSI paid 7.9 million beneficiaries there is however considerable overlap.  Total benefits paid in 2011, including SSI, were $785 billion. Total income including $49 billion from the General Fund to pay for SSI was $830 billion.  Assets held in special issue U.S. Treasury securities grew to $2.7 trillion. In 2011, Medicare covered 48.7 million people: 40.4 million aged 65 and older, and 8.3 million disabled. Total expenditures were $549.1 billion. Total income was $530.0 billion, which consisted of $514.8 billion in non-interest income and $15.2 billion in interest earnings. Assets held in special issue U.S. Treasury securities decreased to $324.9 billion. In 2008 Medicaid served more than 52 million Medicaid beneficiaries costing more than $305 billion the last time data is available.  Medicaid pays approximately 1 in 5 health care dollars and 1 in 2 nursing home dollars, its cost is split between State and Federal governments with the federal share ranging from 50-75%.  In 2008 state agencies collected $32.2 billion in state unemployment taxes, and paid $42.9 billion in Federal and state unemployment benefits to 8.9 million beneficiaries at the height of the recession in FY 2009 state agencies are expected to collect $36.7 billion in state unemployment taxes and to pay $102.9 billion in Federal and state unemployment benefits to 12 million beneficiaries.

 

DI Trust Fund: Current, Free DIRT and WILL 2015-2022

(billions)

 

Year

Total Rev.

Payroll Tax

Other Rev.

Net Interest

Gross

Cost

Gross Increase

USPS

Fed 2020

Year End Balance

2015

121.2

117.3

1.9

2.0

151.0

-29.8

0

28.4

2016

125.8

123.8

2.0

0

155.8

-30.0

0

-1.6

DIR 2.3

161.2

158.2

2.0

1.0

155.8

5.4

0

33.8

WILL

208.7

205.7

2.0

1.0

161.0

47.7

21.4

54.7

2017

133.6

131.4

2.2

0

161.2

-27.6

0

-29.2

DIRT

171.3

167.9

2.2

1.2

161.2

10.1

0

43.9

WILL

222.4

218.3

2.2

1.9

167.3

55.1

21.9

87.9

2018

141.9

139.4

2.5

0

167.1

-25.2

0

-54.4

DIR 2.2

174.4

170.3

2.5

1.5

167.1

7.3

0

51.2

WILL

226.9

221.4

2.5

3.0

173.9

53

22.3

118.6

2019

149.7

147.0

2.7

0

173.6

-23.9

0

-78.3

DIRT

184

179.6

2.7

1.7

173.6

10.4

0

61.6

WILL

240.2

233.5

2.7

4.0

180.9

59.3

22.8

155.1

2020

157.6

154.7

2.9

0

180.6

-23

0

-101.3

DIRT

194.1

189.1

2.9

2.1

180.6

13.5

0

75.1

WILL

254.0

245.8

2.9

5.3

188.2

65.8

32.9

188.0

2021

165.5

162.4

3.1

0

189.4

-23.9

0

-125.2

DIRT

204.2

198.5

3.1

2.6

189.4

14.8

0

89.9

WILL

267.6

258.1

3.1

6.4

197.2

70.4

35.2

223.2

2022

173.5

170.1

3.4

0

198.5

-25

0

-150.2

DIRT

214.4

207.9

3.4

3.1

198.5

15.9

0

105.8

WILL

281.3

270.3

3.4

7.6

206.3

75.0

37.5

260.7

Source: 2014 Annual Report of the OASDI Trustees 2014 Table IV.A.2

 

3. Under the current intermediate assumptions, the Trustees project that annual cost for the OASDI program will exceed non-interest income in 2014 and remain higher throughout the remainder of the long-range period. The projected theoretical combined OASI and DI Trust Fund asset reserves increase through 2019, begin to decline in 2020, and become depleted and unable to pay scheduled benefits in full on a timely basis in 2033. At the time of reserve depletion, continuing income to the combined trust funds would be sufficient to pay 77 percent of scheduled benefits. However, the DI Trust Fund reserves become depleted in 2016, at which time continuing income to the DI Trust Fund would be sufficient to pay 81 percent of DI benefits. Therefore, legislative action is needed as soon as possible to address the DI program’s financial imbalance. Lawmakers may consider responding to the impending DI Trust Fund reserve depletion as they did in 1994, solely by reallocating the payroll tax rate between OASI and DI. Such a response might serve to delay DI reforms and much needed corrections for OASDI as a whole. However, enactment of a more permanent solution could include a tax reallocation in the short-run.  The SSA Actuary presents many wrong answers to the very pressing problem of the looming depletion of the DI Trust Fund and their plan to reduce benefits to 80% in 2016.  It is bothersome that the Actuary does not publish the right answers, nor has that office yet responded to being informed of the right answer, after two wrong submissions with accompanying genocide in Palestine.  The Actuary has not spared the taxpayers or the beneficiaries by performing FDR’s infamous pain in the OASDI tax rate calculation; nor come up with any estimates pertaining to the 130% increase in OASDI revenues from a Without Income Limit Law (WILL) because of corrupt $250,000 negotiations with $174,000 Congressmen who haven’t had the morale to authorize themselves a raise since President Obama took office in 2009.  The Actuary’s letter to the Director of the Office of Management and Budget (OMB) titled, ‘Potential Reallocation of the Payroll Tax Rate Between the Disability Insurance (DI) Program and the Old-Age and Survivors Insurance (OASI) Program’ dated February 5, 2015 was wrong to use the actuarial DI shortfall statistic of 2.7% proposed by the President.  The exact same mistake is hereby corrected to apologize for moving the deficit in the OASI fund from 2021 to 2019.

 

OASI Trust Fund; Current, Free Dirt and WILL 2015-2022

 

Year

Total Rev.

Pay-

roll Tax

Other Rev.

Net Int.

OASI Cost

SSI Cost

Gross Cost

Gross Increase

Federal Share

Year End Balance

2015

816.8

691.1

31

94.7

758.7

0

758.7

58.1

0

2,783.7

2016

858.8

729.2

33.9

95.7

807.5

0

807.5

51.3

0

2,835.0

DIRT

824.5

694.9

33.9

95.7

807.5

0

807.5

17

0

2,800.7

WILL

824.5

694.9

33.9

95.7

807.5

0

807.5

17

0

2,800.7

2017

907.4

773.5

37.5

96.4

861.1

0

861.1

46.3

0

2,881.3

DIRT

869.7

737.0

37.5

95.2

861.1

0

861.1

8.6

0

2,809.3

WILL

1,090.8

958.1

37.5

95.2

880.2

70

950.2

140.6

126.5

2,814.8

2018

959.6

820.7

40.9

98.0

920.5

0

920.5

39.1

0

2,920.4

DIRT

926.1

789.7

40.9

95.5

920.5

0

920.5

5.6

0

2,814.9

WILL

1,163.2

1,027

40.9

95.7

949.7

73.5

1,023

140.2

126.2

2,828.8

2019

1,009.8

865.8

44.7

99.3

985.1

0

985.1

24.7

0

2,945.1

DIRT

973.5

833.1

44.7

95.7

985.1

0

985.1

-11.6

0

2,803.3

WILL

1,223.9

1,083

44.7

96.2

1,024

77.2

1,101

122.9

110.6

2,841.1

2020

1,059.6

910.9

48.6

100.1

1,055

0

1,055

4.6

0

2,949.7

DIRT

1,020.4

876.5

48.6

95.3

1.055

0

1,055

-34.6

0

2,768.7

WILL

1,284.7

1,140

48.6

96.6

1,103

81.0

1,184

100.7

50.3

2,891.4

2021

1,109.4

956.5

52.6

100.3

1,123

0

1,123

-13.6

0

2,936.1

DIRT

1,067.1

920.4

52.6

94.1

1,123

0

1,123

-55.9

0

2,712.8

WILL

1,347.4

1,196.5

52.6

98.3

1,183

85.1

1,268

79.4

39.7

2,931.1

2022

1,158.5

1,001.8

56.9

99.8

1,197

0

1,197

-38.5

0

2,897.6

DIRT

1.113.1

964.0

56.9

92.2

1,197

0

1,197

-83.9

0

2,628.9

WILL

1,409.8

1,253.2

56.9

99.7

1,270

89.3

1,359

50.8

25.4

2,956.5

Source: Annual Report of the OASDI Trustees 2014 Table IV.A.1. Correction: (1) Interest is recalculated at a uniform 3.4% rate. (2) High cost estimated for the WILL are found in the low-cost projections.  The depletion date of the OASDI Trust Fund was retarded one year.

 

4. The USDA has totally deprived more than a million people of their food stamp benefits and cut nearly everyone’s benefits since October 31, 2013.  There were 47.6 million SNAP beneficiaries at a cost of $79.9 billion in October 2013 and 46.5 million beneficiaries at a cost of $74.1 billion in 2014 a reduction of 1.1 million beneficiaries.  The USDA budget predicts normal growth but it is feared that any such growth will just be stolen as welfare fraud does not seem to equally protect the United States from welfare theft.  During the economic depression that is not necessarily over for workers, the number of food stamp beneficiaries, rose dramatically from 28.4 million in 2008 to 44.7 million in 2011 at a total cost of $37.6 billion and $75.7 billion respectively, but since October 2013 more than a million beneficiaries have lost their benefits.  The 2008 farm bill (H.R. 2419, the Food, Conservation, and Energy Act of 2008) was enacted May 22, 2008 through an override of the President’s veto. The new law increased the commitment to Federal food assistance programs by more than $10 billion over the next 10 years. In efforts to fight stigma, the law changed the name of the Federal program to the Supplemental Nutrition Assistance Program or SNAP as of Oct. 1, 2008, and changed the name of the Food Stamp Act of 1977 to the Food and Nutrition Act of 2008.  Additional Recovery Act funds were terminated as of October 31, 2013 in accordance with an illegitimate Republican interpretation of section 442 of the Healthy, Hunger-Free Kids Act of 2010 (Public Law 111-296).  The cuts were deep and totalitarian, as has happened so many times before under the Food Stamp Act of 1977, the bureaucracy went agro, SNAP beneficiaries did not get the tenure promised by Food, Conservation and Energy Act of 2008 H.R. 2419, and the longest uninterrupted growth in good stamp from the Farm Bill of 2002 was brought to end.  USDA and FNS must not cut SNAP benefits anymore.  SNAP benefits must grow or there are legal consequences for the kleptomaniac Secretary.  The original jurisdiction of the U.S. Supreme Court is sought to prevent the USDA from future SNAP cut recidivism in a case titled United States ex. rel. v. Agriculture Secretary Tom Vilsack and Office of National Drug Control under deprivation of relief benefits under 18USC§246.  SNAP must grow, slavery must be abolished and repealed, and USDA agricultural subsidies must cite the Biosafety and Redress Protocols to the 1992 Convention on Biological Diversity and the 1982 Law of the Sea that protects the Safe Drinking Water Act from cattle. 

 

Supplemental Nutrition Assistance Program Participation and Costs

 

(Data as of June 5, 2015)

 

   

   

Average Benefit Per Person

   

All Other Costs

   

 

 

 

 

 

 

Fiscal Year

Average Participation

Total Benefits

Total Costs

 

   

--Thousands--

--Dollars--

     ----------Millions of Dollars----------

 

2013

47,636

133.07

76,066.32

3,866.98

79,933.30

 

2014

46,536

125.35

69,999.81

4,130.17

74,129.98

 

Source: USDA

 

5. The number of TANF beneficiaries has declined dramatically from a high of nearly 14.2 million in 1993 to little less than 5 million in 2003 after the Personal Responsibility and World Opportunity Reconciliation Act (PRWORA) of 1996 coerced families with children to work.  In 2011 an estimated 1 in 4 US children, 21%, were growing up in poverty, the highest rate in the industrialized world. In Finland, the number is about 2.8%; Norway, 3.4%; Sweden, maybe 4.2%, Switzerland, 6.8%, Netherlands in second place at 9.8%.  In 2004 in the U.S. an estimated 14 million parents had custody of 21.6 million children under 21 years of age while the other parent lived somewhere else.  28% of children live in single parent household as the result of the dramatic increase in divorce rate to 50% of all marriages in the 1990s.  In 1999 there were 2.2 million marriages and 1.1 million divorces.  Only 10% of children living with both parents were below the poverty line whereas 40% living with only one parent were below the poverty line.  Children living only with their mothers were twice as likely to live in poverty as those living only with their fathers.  In 2001, 6.9 million custodial parents were due an average of $5,000.  An aggregate of $34.9 billion of payments were due and about $21.9 billion (62.6%) were received, averaging $3,200 per custodial-parent family, another $900 million were volunteered by parents without current awards or agreements. The United States needs to stop reinventing private health insurance and ratify the International Labor Organization (ILO) Holidays with Pay Convention (Convention 132) of 1970; Workers with Family Responsibilities (Convention 156) of 1981, and Maternity Protection (Convention 183) of 2000.

 

Medicaid with Premiums; Deficit Neutral Revenues and Outlays 2013-2020

 

Medicaid

State Revenues

Federal Revenues

Premium Revenues

Current Benefit Payment

New Benefit Payment

Admin-istration

2013

184.1

265.4

 

251

 

14.5

2014

169.2

308.6

 

290

 

18.6

2015

170.6

336

60.1

318.5

60.1

18.8

2016

172.0

356.2

80.0

337.2

80.0

19.0

2017

173.4

377.5

100

358.3

100

19.2

2018

174.8

400.2

110

380.8

110

19.4

2019

176.2

424.2

120

404.6

120

19.6

2020

177.6

449.6

130

429.9

130

19.7

Source: FY 2015 HHS Budget pg. 77  CMS National Health Expenditure Projection 2013-2023 - Total Medicaid spending was $449.5 billion in 2013.

 

6. The U.S. is not party to the ILO Holidays with Pay Convention 132 of 1970 and sick days tend to go unpaid.  The U.S. does not have a universal health insurance system, or keep medical creditors out of the credit bureau, but health spending per capita in the US private health insurance system, at $5,777 in 2008 is by far the highest in developed countries -- 24% higher than in the next highest spending countries, and over 90% higher than in other countries that would be considered global economic competitors.  The share of GDP devoted to health grew from 8.8% of GDP in 1980 to 15.2% of GDP in 2003 to around 18% in 2015. Despite the high cost, the U.S. tends to lag behind its peers in many vital statistics.  An estimated 47 million people, 15% of the population, are uninsured.  In most other industrialized nations 90-95% of people have prepaid health insurance.  Average annual premiums for employer-sponsored coverage in 2006 in the U.S. were $4,242 for single coverage and $11,480 for family coverage.  Between 10-1-2013 and 3-31-2014; 8 million people have made marketplace plan selections, 6.7 million with financial assistance, averaging about $4,731 each policy if the $31,700 million cost of the refundable tax credit is to be tested.  The Treasury Department’s total budget request is $573.5 billion about $1 billion more than OMB estimates.  Abolishing the refundable premium tax credit and cost-sharing reduction would reduce Treasury spending by $69.1 billion to $513.4 billion.  Growth in mandatory spending has increased $101 billion, 22.3% growth, mostly due to new refundable premium tax credit and cost sharing reductions estimated by the Treasury at $60.1 billion FY 2015, that needs to be immediately abolished.  Interest on the public debt has increased by 6.5% from $395 billion 2014 to $419 billion 2015, an increase of $24.1 billion.   CMS is moving forward with making the Basic Health Plan Program available to states as another option to expand coverage.  King v. Burwell (2015) prevents the deprivation of relief benefits but not the accounting fraud we must continue to deal with in regards to the refundable premium and tax credits.  Between 10-1-2013 and 3-31-2014; 8 million people have made marketplace plan selections, 6.7 million with financial assistance, averaging about $4,731 each policy if the $31,700 million cost of the refundable tax credit is to be tested for paying the entire cost of a Medicaid family plan for a middle class worker, and 1.2 million without subsidy.  Annual premiums at 200% of FPL would be around $2,517.60 for an individual and $5,035 for a family and the existing 8 million beneficiaries could be estimated to pay exactly $31,700 million in premiums in matching funds with the refundable tax credit.  Medicaid spending is estimated to operate on a -$2.7 billion deficit at its inception.  If the number of beneficiaries doubles to 16 million premium payers in 2015, paying $60,100 in premiums, the account deficit might double to -$5.2 billion.  But for every eight million people who stop receiving the ESI the federal government should receive $10.7 billion in old revenues so it shouldn’t hurt federal revenues.  Buy Medicaid.  The most important federal health accounting issue is to limit regular HHS spending to less than $1 trillion annually, semi-permanently. To reduce HHS spending to less than $1 trillion, not including the refundable premium and tax credits, it is necessary to abolish the new, expensive and unexplained concept of other mandatory programs.  Without explanation, other mandatory programs, increased from $1.9 billion FY2014 to $24.6 billion FY2015.  The other mandatory spending row must be abolished to reduce HHS spending to less than $1 trillion FY 2015, $993.5 billion to be exact. 

 

Federal Budget FY 2015 2000-2020

[Millions]

 

 

2000

2015 OMB

2016

2017

2018

2019

2020

Executive Office of the President

283

 

506

519

532

545

559

573

Legislative Branch

2,871

 

4,694

4,811

4,932

5,055

5,181

5,311

Judicial Branch

4,057

7,584

7,774

7,968

8,167

8,371

8,581

Postal Service

0

0

21,115

21,643

22,184

22,739

23,307

Department of Agriculture

75,071

 

139,727

143,500

147,088

150,765

154,534

158,397

Department of Commerce

7,788

 

9,607

9,020

9,246

9,477

9,714

9,956

Department of Defense

281,028

584,319

495,000

495,000

495,000

495,000

495,000

Department of Education

33,476

 

76,334

70,315

72,073

73,875

75,722

77,615

Department of Energy

14,971

29,374

28,598

29,312

30,045

30,796

31,566

Department of Health and Human Services

382,311

 

1,010,384

996,000

996,000

96,000

996,000

996,000

Department of Homeland Security

13,159

 

47,456

39,155

40,134

41,137

42,166

43,220

Department of Housing and Urban Development

30,781

 

38,088

39,040

40,016

41,016

42,042

43,093

Department of the Interior

7,998

 

13,702

12,198

12,502

12,815

13,135

13,464

Department of Justice

16,846

 

33,859

22,493

23,055

23,631

24,222

24,828

Department of Labor

31,873

68,094

54,837

56,208

57,614

59,054

60,530

Department of State

6,687

28,954

14,389

14,749

15,117

15,495

15,883

International Assistance Programs

12,087

 

21,577

37,406

38,342

39,300

40,283

41,290

Department of Transportation

41,555

 

84,252

90,900

93,173

95,502

97,890

100,337

Department of the Treasury

390,524

 

572,593

525,005

538,130

551,583

565,373

579,507

Department of Veterans Affairs

47,044

 

158,039

164,410

168,520

172,733

177,052

181,478

Corps of Engineers--Civil Works

4,229

 

7,745

7,939

8,137

8,341

8,549

8,763

Environmental Protection Agency

7,223

 

8,379

8,087

8,289

8,497

8,709

8,927

General Services Administration

74

 

408

418

429

439

450

462

National Aeronautics and Space Administration

13,428

 

18,076

17,938

18,386

18,846

19,317

19,800

National Science Foundation

3,448

 

8,103

7,436

7,622

7,813

8,008

8,208

Office of Personnel Management

48,655

 

93,362

48,000

48,000

48,000

48,000

48,000

Small Business Administration

-421

 

1,057

500

500

500

500

500

Social Security Administration (On-Budget)

45,121

 

90,398

70,000

0

0

0

0

Other Independent Agencies (On-Budget)

8,803

 

19,413

19,898

20,396

20,906

21,428

21,964

Total on-budget outlays

1,788,950

3,176,084

2,956,701

2,920,382

2,954,903

2,990,289

3,026,560

Source: OMB Table 4.1, Agency FY 2015 Budgets + 2.5% annual growth

 

7. It is estimated OMB could reduce the deficit by $190 billion if OMB accounted more accurately for agency budget requests in 2015.  This does not include the $103.4 billion that are also saved by abolishing the $57.4 billion Other Defense Civil Programs, and $46 billion Allowances rows, for $360 billion in debt relief reducing OMB deficit estimates to $460 billion.  Nor does it include abolishing the $60.1 billion mandatory refundable premium tax credit and cost-sharing reduction by accounting for Medicaid Basic Health Plan to collect premiums and pay benefits off-budget in a deficit-neutral account monitored in the HHS budget request and OMB Table 4.1 off-budget; the United States could reduce the deficit to -$209.3 billion in 2015.  Provided agencies aim for 2% annual spending growth with a 3% limit, with the exception of DoD with a $500 billion spending and Health and Human Services with a $1 trillion limit, balancing the federal budget should become much easier.  The Defense budget for FY 2013 was $495.5 billion FY2013, $496 billion FY 2014 and $495.6 billion FY2015.  Military pay and benefits account for the largest share of the budget, $167.2 billion out of $495.6 billion FY2015.  The OMB estimates are much higher, $608 billion FY2013, $593 billion FY2014 and $584 billion FY2015.  The Department of Defense offers OMB the opportunity to reduce the gross federal debt with three years valued of $295.9 billion including the FY2015 deficit reduction of $88.4 billion.  OMB must account more accurately agency spending in Table 4.1. OMB must commission an annual review of agency budget requests to improve the accuracy and predictability of their accounting under Art. 2(2) of the U.S. Constitution.  There may be considerable retroactive relief due for agency budget officers who prove to OMB that their lower estimates to be more accurate than the figures in the OMB Historical Tables which are used to calculate the Deficit.  Accurate reporting is necessary to establish a baseline for predictable 2.5% annual rates of agency spending growth.

 

Receipts by Source Revised for On-budget/Off-budget OASDI WILL and Medicaid Premiums 2013-2020

 

 

2013

2014

2015

2016

2017

2018

2019

2020

 

 

 

 

 

 

 

 

 

Individual Income Tax

1,316.4

1,386.1

1,533.9

1,647.8

1,780.7

1,920.1

2,074.1

2,178.5

Corporation Income Tax

273.6

332.7

449.0

501.7

528.0

539.9

414.5

526.6

(On-budget) HI tax and premiums

284.5

287.6

324

329

355.5

379.6

403.5

429

(On-budget) OASDI maximum allowable deficit

0

0

0

22.5

208.8

222.9

236.3

132

Excise taxes

84.0

93.5

110.5

115.4

118.9

122.1

126.7

130.3

Miscellaneous receipts

102.6

117.6

131.7

103.6

95.9

82.6

88.9

101.2

Estate and gift taxes

18.9

15.7

17.5

19.6

21.2

22.8

39.4

42.3

Customs duties

31.8

35.0

47.0

52.0

54.6

58.1

62.4

64.8

Total on-budget receipts

2,101.8

2,269.4

2,587.5

2,794.6

3,163.6

3,348.1

3,445.8

3,604.7

OASDI receipts (Off-budget)

822.9

863.1

962.5

1,076.3

1,124.9

1,205.1

1,265.6

1,449.1

Medicaid premiums (Off-budget)

0

0

60.1

80

100

110

120

130

Total receipts (Off-budget)

822.9

863.1

1,022.6

1,156.3

1,224.9

1,315.1

1,385.6

1,579.1

Total on-budget receipts

2,101.8

2,269.4

2,612.5

2,794.6

3,163.6

3,348.1

3,445.8

3,604.7

Total receipts

2,924.7

3,132.5

3,635.1

3,850.9

4,388.5

4,663.2

4,831.4

5,183.8

Source: OMB Table 12.1, 2013 Annual Report of the OASDI Trustees; Intermediate projections.

 

8. The receipts by source in OMB Table 12.1 requires three new rows and a change of name from Social Insurance to Social Security Administration total and from on-budget social insurance to on-budget Health Insurance will be necessary. Accounting for the OASDI without income limit law profit sharing provision at a rate of up 90% to off-set the federal deficit, at least 10% SSA until 2020, 50/50 until 2025 and 5% federal, 95% SSA to 2030 after which time there will not be enough of an OASDI surplus to pay the General Fund, requires the creation of a new column of on-budget Social Security Administration (SSA) revenues. 1. Congress must enact a gas, oil, coal and electricity export tax and authorize new appropriations for the Postal Service with half of new WILL to collect DI revenues.  OMB Table 4.1 would add a United States Postal Service (USPS) row to account for $20 billion +3% annual growth from FY 2014, $20.6 billion FY 2015 + <2.5% annual growth in subsequent year before refinancing costs go up, and USPS would be expected to submit an annual budget justification to Congress like other Departments. In 2016 OMB would remove the Social Security on-budget row in Table 4.1 and place the historical amounts paid for SSI and administration in the Other Independent Agency on-budget row because the OASDI WILL would pay for SSI and administration, $70 billion in 2017 and there should be no obsolete rows in Table 4.1.  The Treasury’s mandatory $60,100 billion 2015 refundable premium tax credit and cost-sharing reduction needs to be abolished and used to estimate a new deficit-neutral off-budget system of accounting for Medicaid outlays and receipts from the sale of the Medicaid Basic Health Plan to the public by the Marketplace.  OMB will account for this deficit-neutral market priced premium health insurance in a new off-budget Medicaid receipt and outlay rows in Table 4.1.  If all these spending limitations, DI WILL and GET revenue provisions were passed in 2016 there would be a total surplus of $55 billion, a -$70 billion on-budget deficit and a $146.6 off-budget surplus.

 

Gross Federal Outlays and Revenues, Surplus/Deficit 2000-2020 

 

 

2000

2015

2016

2017

2018

2019

2020

Total on-budget outlays

1,788,950

3,176,084

2,956,701

2,920,382

2,954,903

2,990,289

3,026,560

Undistributed Off-setting receipts (On-budget)

-105,586

-136,208

-145,297

-144,639

-145,067

-148,630

-149,793

Total on-budget receipts

1,544,607

2,612,500

2,794,600

3,163,600

3,348,100

3,445,800

3,604,700

On-budget surplus/deficit

86,422

-427,326

-16,804

387,857

538,264

615,265

739,335

OASDI outlays (off-budget)

330,765

863,100

963,300

1,022,300

1,087,600

1,158,700

1,235,200

Other Independent Agencies (off-budget)

2,029

-958

-958

450

-413

81

1,215

Off-budget outlays

332,794

862,142

1,042,342

1,122,750

1,197,187

1,278,781

1,366,415

Undistributed Offsetting Receipts (Off-budget)

-67,433

-112,229

-109,641

-109,246

-109,474

-110,017

-110,256

Net Off-budget outlays

265,361

749,913

932,701

1,013,504

1,087,713

1,168,764

1,256,159

Total Off-budget receipts

480,584

757,877

1,079,300

1,224,900

1,315,100

1,385,600

1,579,100

Off-budget surplus/deficit

215,223

7,964

146,599

211,396

227,387

216,836

322,941

Total on-budget outlays

1,788,950

3,176,084

2,946,372

2,909,794

2,944,051

2,979,165

3,015,158

Off-budget outlays

332,794

862,142

1,042,342

1,122,750

1,197,187

1,278,781

1,366,415

Total outlays

2,121,744

4,038,226

3,988,714

4,032,544

4,141,238

4,257,946

4,381,573

Total Undistributed Offsetting Receipts

-173,619

-248,437

-254,938

-253,885

-254,541

-254,647

-254,645

Total receipts

2,025,191

3,337,425

4,043,900

4,388,500

4,663,200

4,831,400

5,183,800

Total surplus/deficit

77,066

-452,364

55,186

609,841

776,503

828,101

1,056,872

Gross Federal Debt

5,629,000

18,714,000

18,658,814

18,048,973

17,272,470

16,444,369

15,387,496

GDP

10,154,000

18,219,000

19,181,000

20,199,000

21,216,000

22,196,000

22,990,000

Debt as % of GDP

55.4%

102.7%

97.2%

89.4%

81.4%

74.1%

66.9%

Source: OMB Tables 1.1, 4.1 and FY2015 Agency Budget Requests; Sanders ’14: 91-94 updated to abolish Allowances and Other Defense Civil Program rows and project revenues for the DI WILL in 2016 and OASDI WILL in 2017

 

9. The federal government usually runs on a deficit, with some famous exceptions, such as when Andrew Jackson paid off the federal debt in 1835 and more recently when Bill Clinton ran a surplus in 1998-2000, and is currently running the highest deficit in dollar terms in national history, -$1.4 trillion in 2009, and -$1.3 trillion in 2010, 2011 and 2012 and is projected to improve to -$900 million in 2013, down to -$530 billion in 2015 and going down for a short while before the accounting fraud causes the deficit to grow again by 2018. This deficit is the second highest as a percentage of GDP since WWII and the Confederacy during the Civil War.  Currently the federal budget teeters on the brink of the European definition of a solvent 3% deficit at around -$500 billion. The OASDI WILL tax eliminates the deficit in 2017 with hundreds of billions of dollars of surplus revenues to expand welfare programs and pay off the federal debt.

 

Gross Federal Debt, Surplus or Deficit, Debt Held by Public, Compared as % of GDP 2000-2019

 

Year

2000

2001

2002

2003

2004

Gross Federal Debt

5,629

5,770

6,198

6,760

7,355

% of GDP

55.4

54.6

60.0

59.6

60.8

Surplus or Deficit

236

128

-158

-378

-413

Debt Held by Public

3,410

3,320

3,540

3,913

4,296

% of GDP

33.6

31.4

32.6

34.5

35.5

Year

2005

2006

2007

2008

2009

Gross Federal Debt

7,905

8,451

8,951

9,986

11,876

% of GDP

61.3

61.7

62.5

67.7

82.4

Surplus or Deficit

-318

-248

-161

-459

-1,414

Debt Held by Public

4,592

4,829

5,035

5,803

7,545

% of GDP

35.6

35.3

35.2

39.3

52.3

Year

2010

2011

2012

2013

2014

Gross Federal Debt

13,529

14,764

16,051

16,719

17, 893

% of GDP

91.5

96.0

99.7

100.6

103.2

Surplus or Deficit

-1,294

-1,300

-1,087

-680

-649

Debt Held by Public

9.019

10,128

11,281

11,983

12,779

% of GDP

60.9

65.9

70.4

72.3

74.1

Year

2015

2016

2017

2018

2019

Gross Federal Debt

18,714

19,512

20,262

20,961

21,671

% of GDP

102.7

101.7

100.3

98.8

97.6

Surplus or Deficit

-564

-531

-458

-413

-503

Debt Held by Public

13,305

13,927

14,521

15,135

15,850

% of GDP

74

73.6

73

72.8

73.1

Source: OMB Historical Table 1.1 and 1.2; Sanders ’14: Table 1 Debt and Deficit as % of GDP 2000-2020, CBO Revenues, Outlays, Deficits, Surpluses and Debt Held by the Government since 1965

 

10. OMB estimates that the “gross federal debt” reached a high of 103.2% of GDP in FY 2014 and is scheduled to reach 102.7% of the GDP this FY 2015 before steadily declining due to GDP growth.  CBO offers dramatically lower estimates of “debt held by the public” that reached $13.4 trillion, 74% of GDP FY2015 but does not prove it by accounting for agency spending.  CBO does offer a public debt that is much truer to the deficit.  However CBO debt held by the public also tends to accumulate faster than the explained by the deficit.  For instance in 2001 after a budget surplus of $236 billion the debt held by the public declined by only $90 billion. OMB on the other hand proves their revenues and agency spending totals in the calculation of their on-budget deficit but then inexplicably adds far more than the price of the deficit to the gross federal debt.  In 2001 after turning a surplus of $236 billion in 2000 the gross federal debt didn’t decrease, it increased $200 billion from $5.6 trillion to $5.8 trillion.  CBO debt statistics are nearly exactly explained by the deficit but are also high.  Debt rises much faster than is explained by the deficit.  It might be wise to require by law that all future federal debt be explained by the deficit.  Under current policies, CBO projects that even the smaller national debt held by the public, 74% of GDP in 2015, as opposed to the gross federal debt, 102.7% of GDP, would rocket to 185% by 2035, and to 200% by 2037, twice as large as our entire economy.  This national debt would explode further to unprecedented levels of 233% of GDP by 2040, and to 854% by 2080.  Before the financial crisis, US federal debt as a percentage of GDP was around 40 percent, not too much worse than the long-term average of 36 percent.  In 2013 the Congressional Budget Office (CBO) projects the debt will reach 62 percent of the GDP, in 2015 it will reach 74 percent and in 2020 it will reach 90 percent, and eventually surpass total economic output in 2025.  By 2037, the debt would exceed 200 percent of GDP.  The longer action to deal with the nation’s long term fiscal outlook is delayed, the greater the risk that the eventual changes will be disruptive and destabilizing.  Pass the Free DIRT Act, OASDI WILL and GET Acts. 

 

Sanders, Tony J. Book 3: Health and Welfare (HaW). 10th Ed. Hospitals & Asylums HA-7-9-15. 249 pgs.  www.title24uscode.org/haw.doc

Test Questions www.title24uscode.org/hawtest.doc