Ashtanga 0 #1 September 16, 2005 When we pay taxes where does the money go? Is there a Federal Government Bank Account somewhere? Also, how does the U.S. give money to other countries if we are in so much debt ourselves? Is it like a credit card? Just something that was bothering me today and I need the answer. Thanks. Quote Share this post Link to post Share on other sites
tcnelson 1 #2 September 16, 2005 it's all in iou's. it's why 3m developed post-it notes. seriously, yes, there are govt. bank accts. and there are a whole bunch of accountants and lawyers trying to make heads or tails of the mess. some tax money goes to the general fund that can be used for anything and some money goes for specific things like education. just as a side note...did you know that your social security withholding goes into the general, public coffer? basically, it's just another income tax."Don't talk to me like that assface...I don't work for you yet." - Fletch NBFT, Deseoso Rodriguez RB#1329 Quote Share this post Link to post Share on other sites
Andrewwhyte 1 #3 September 16, 2005 Effectively the gov borrows the money for foreign aid from the Treasury Branch. This is commonly referred to as printing money. Quote Share this post Link to post Share on other sites
gemini 0 #4 September 16, 2005 There is no gigantic bank account for the US with trillions in it. There are thousands of accounts where various taxes, fees, penalties and payments from taxpayers are deposited. On the other side of the ledger, there are millions of checks and wire payments being disbused by every govt agency and office all over the world. Although it would be nice to think someone really reconciles all this to give an accurate financial picture of the US it is all smoke and mirrors with some expenses moved from year to year and some revenues accelerated. I know we are never in the ballpark on the govt estimates, but I would hope that we are at least in the same sport when the guesstimates are put together. Bottom line is there doesn't have to be any money in an account for the govt to write checks. It just keeps moving funds around, printing more money and issuing credit. Blue skies, Jim Quote Share this post Link to post Share on other sites
kallend 2,146 #5 September 16, 2005 QuoteThere is no gigantic bank account for the US with trillions in it. There are thousands of accounts where various taxes, fees, penalties and payments from taxpayers are deposited. On the other side of the ledger, there are millions of checks and wire payments being disbused by every govt agency and office all over the world. Although it would be nice to think someone really reconciles all this to give an accurate financial picture of the US it is all smoke and mirrors with some expenses moved from year to year and some revenues accelerated. I know we are never in the ballpark on the govt estimates, but I would hope that we are at least in the same sport when the guesstimates are put together. Bottom line is there doesn't have to be any money in an account for the govt to write checks. It just keeps moving funds around, printing more money and issuing credit. Yes, and individuals who try it end up in jail.... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
StreetScooby 5 #6 September 16, 2005 The US govt also issues _alot_ debt paper that the Japanese and Chinese (...to date) can't seem to get enough of, though the Chinese are starting to move into physical assets like oil refineries.We are all engines of karma Quote Share this post Link to post Share on other sites
BillyVance 35 #7 September 16, 2005 QuoteWhen we pay taxes where does the money go? Is there a Federal Government Bank Account somewhere? Yeah, the U.S. Treasury. "Mediocre people don't like high achievers, and high achievers don't like mediocre people." - SIX TIME National Champion coach Nick Saban Quote Share this post Link to post Share on other sites
jimmytavino 16 #8 September 16, 2005 ..... what Gemini Said... it is alll Deficit Spending... I have a strong sense that most of the numbers are Skewed, anyway. ( very much like the Fed Unemployment #'s !!) We lost the "buy now-PAY NOW!!! " common sense approach to consumer spending, decades ago...and just as more and more individuals are on the wrong side of the equation,, SO is the USA Federal government>> Isn't it common knowledge that we have a 4 trillion dollar DEBT??? Can anyone tell us if the the Government back in the early part of the 1900's and on into the 40's and the 50's operated with a positive Treasury Balance on hand???? When did US Income Taxes begin???? I'm not a historian or economist but it seems that this Government Used to be solvent!!! As the50's , 60's and 70's arrived , we as a society, were blasted with offers to " Buy now Pay Later "....most everyone replied... " SureThing".... and look where we are now.... Sure maybe that sort of thing stirs the economy,,and I recognize the wisdom of Taking Loans to buy a Home.. ( though certainly NOT to buy a Car!!! )... but I see more businesses, families, and individuals in the red now, than in the black....!!! Much of it is because of growing expenditures for personal taxes, insurances, payroll taxes, health care, utilities, and communications... and it portends trouble....We have a goverment which takes.... from everyone who is lucky enough to have work... gives little back to those people and instead throws it at this program or that program, or at this overseas country or that overseas country,, and soon it's all gone...Washed away.. so to speak... The Government just follows suit by deficit spending...... It seems to me less than 10 years ago , as a nation, we had a balanced budget.....what happened..??? I don't know everything... but I do understand the concept that you must have LESS 'outgo' than you have 'income',,, and if you don't.... you have to do something about it...the least of which is to "continue happily along, with a silly grin on your face, continuing to spend" as though there wasn't a care in the world....... Plenty of questions.. Anyone have the answers?? jmy.....Sept 16.....anniversary of my first jump Quote Share this post Link to post Share on other sites
panzwami 0 #9 September 16, 2005 Quoteit's all in iou's. it's why 3m developed post-it notes. damn, if that's the case then this guy must be loaded. Quote Share this post Link to post Share on other sites
StreetScooby 5 #10 September 16, 2005 Quote Isn't it common knowledge that we have a 4 trillion dollar DEBT??? Over a third of the US govt's cash flow goes to military, and another third goes to entitlement programs.We are all engines of karma Quote Share this post Link to post Share on other sites
kallend 2,146 #11 September 17, 2005 Quote. Isn't it common knowledge that we have a 4 trillion dollar DEBT??? Can anyone tell us if the the Government back in the early part of the 1900's and on into the 40's and the 50's operated with a positive Treasury Balance on hand???? When did US Income Taxes begin???? I'm not a historian or economist but it seems that this Government Used to be solvent!!! As the50's , 60's and 70's arrived , we as a society, were blasted with offers to " Buy now Pay Later "....most everyone replied... " SureThing".... and look where we are now.... The Government just follows suit by deficit spending...... It seems to me less than 10 years ago , as a nation, we had a balanced budget.....what happened..??? jmy.....Sept 16.....anniversary of my first jump Your figures are incorrect. 10 years ago (and 15, and 20 and 25...) we had a deficit. 5 years ago we had a surplus. No we don't have a $4Trillion debt. We have a $7.96Trillion debt, and its increasing at a rate of $1.6Billion every day. I bet that makes you feel better.... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
jimmytavino 16 #12 September 17, 2005 thanks for the accurate details.... If we once had a deficit and then overcame it to have a surplus,,, do you think we can do that again?? I Hope so.. OVER 7 trillion HUH?????..... whoa... 1.6 billion!!!????? EVERY Day....? Damn.. who the hell is in charge here????? a Third to the military.... a Third to entitlements.... Do any of these entitlements benefit the working men and women whose payroll taxes Finance this whole operation....??? I guess ( from what a read ) that there IS a bridge up in Alaska which I can drive On,,, IF I could afford the gasoline to get there... Once again I ask.... ' who the hell is in charge here.'? answer... NOT anyone i ever voted for....that's for sure.. Quote Share this post Link to post Share on other sites
Gravitymaster 0 #13 September 17, 2005 We never had a true surplus, because Social Scurity contributions were included in the numbers. Quote Share this post Link to post Share on other sites
mnealtx 0 #14 September 17, 2005 QuoteWe never had a true surplus, because Social Scurity contributions were included in the numbers. Yeah, but it sure is a nice numbers game, if you can get away with it.... your adherents will use it for YEARS afterward...Mike I love you, Shannon and Jim. POPS 9708 , SCR 14706 Quote Share this post Link to post Share on other sites
penniless 0 #15 September 17, 2005 QuoteQuoteWe never had a true surplus, because Social Scurity contributions were included in the numbers. Yeah, but it sure is a nice numbers game, if you can get away with it.... your adherents will use it for YEARS afterward... Of course, the current administration wouldn't do such a thing. Or the Reagan and Bush(41). Quote Share this post Link to post Share on other sites
mr2mk1g 10 #16 September 19, 2005 Saw this and thought of this thead: http://www.uuforum.org/deficit.htm So Bush has spent at a rate of $13 trillion faster than the US earns? Man I wish I could get that kinda credit. Quote Share this post Link to post Share on other sites
kallend 2,146 #17 September 19, 2005 QuoteSaw this and thought of this thead: http://www.uuforum.org/deficit.htm So Bush has spent at a rate of $13 trillion faster than the US earns? Man I wish I could get that kinda credit. "My plan reduces the national debt, and fast. So fast, in fact, that economists worry that we're going to run out of debt to retire." President G.W. Bush —radio address, Feb. 24, 2001... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
mr2mk1g 10 #18 September 19, 2005 Yeah I saw that one - and thought of the graph I posted earlier today. Funny that. Quote Share this post Link to post Share on other sites
StreetScooby 5 #19 September 19, 2005 Quote So fast, in fact, that economists worry that we're going to run out of debt to retire." President G.W. Bush —radio address, Feb. 24, 2001 US govt debt constitutes a core hedge trade to many, if not all, securities firms. They are considered the safest and are used as a baseline for risk calculations. To remove US govt debt securities from the market would change alot of things, and _is_ a worry to economists, etc.We are all engines of karma Quote Share this post Link to post Share on other sites
kallend 2,146 #20 September 19, 2005 QuoteQuote So fast, in fact, that economists worry that we're going to run out of debt to retire." President G.W. Bush —radio address, Feb. 24, 2001 US govt debt constitutes a core hedge trade to many, if not all, securities firms. They are considered the safest and are used as a baseline for risk calculations. To remove US govt debt securities from the market would change alot of things, and _is_ a worry to economists, etc. Well, George sure fixed that worry, didn't he?... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
StreetScooby 5 #21 September 19, 2005 Quote Well, George sure fixed that worry, didn't he? Yes he did. You've heard about the 30 year govt bond coming back on the market? The govt is trying to lock in long term low interest rates while they last.We are all engines of karma Quote Share this post Link to post Share on other sites
kallend 2,146 #22 September 25, 2005 QuoteWe never had a true surplus, because Social Scurity contributions were included in the numbers. According to www.cbo.gov there was a true surplus in 1999 and again in 2000.... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
tso-d_chris 0 #23 September 27, 2005 I found this to be interesting reading. Okay, maybe not interesting, but enlightening, nonetheless. Quote Share this post Link to post Share on other sites
kallend 2,146 #24 September 27, 2005 QuoteI found this to be interesting reading. Okay, maybe not interesting, but enlightening, nonetheless. Hey, good find. This seems to answer the question raised: "I measure deficits the same way the Office of Management and Budget (OMB), the Congressional Budget Office (CBO), and the Government Accountability Office (GAO) do – as the annual net cash flow between the government and the public for all federal programs. There is a strong intuitive case, however, for excluding the trust funds, and especially the Social Security trust fund. It would take another document to explain why I, most budget analysts, and all economists prefer to look at the government as a whole rather than to separate out the trust funds. However, if you do exclude the trust funds from the measurement of the surplus, then recent deficits and especially the Bush 2 deficits would be noticeably higher than displayed here."... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
tso-d_chris 0 #25 September 27, 2005 QuoteHey, good find. Thanks. I thought it was interesting that, generally, the Republican presidents of the last few decades have been less fiscally responsible than their Democrat counterparts. The general perception seems to be just the opposite. Quote Share this post Link to post Share on other sites