So why all the hoopla about not having funds for this and that while all the money is still flowing in? Are you telling me it's all theater? Why did they mellon moron think he needed to give $130 million? Where is all the money being held? Do we need all the tens of thousands of bureaucracy leeches if the government is 'shutdown' but 95% of the budget is still humming along?! Debt payments to who? Don't we just print money and basically borrow against ourselves 'in the future ' and via inflation? What other country is sitting by the mailbox waiting for that check from the USA to come in? The national debt is all smoke and mirrors distraction/political football.
We gonna 'service the debt' before paying soldiers and air traffic control? It's all theater.
why should any of us pay fed taxes this month? or last month?
This isn't the right thread to take the time to explain (1) how the Fed budget breaks down and (2) how funding it works. I suggest you take some time to research this and learn if you want to bitch about it publicly.
The most important parts though are that:
- The stoppage is on what is called "discretionary" spending, neaning things that Congress has to vote and pass a bill that we continue to incur expenses on because they are, to some extent, optional. Thats only part of the total budget. Interest on debt... we have to pay. Social Secuirity etc - we have to pay - and is funded via the payments people are making into it via payroll taxes, and is already set into motion and will just go indefinitely unless a law stops it.
Contracts (which is by far the largest part of gov spending - only 4% of the total budget is salaries) are already obligated to be paid w/ money from FY25 and that money is already committed to pay them, even if it isn't technically "gone" yet the commitement is made so we can't un-spend it.
- Its not a question of what money we "have". We already run on a massive deficit (we spend more money than we bring in), and in reality, the cash flow of the gov isn't consistent and even over the year. Although most wage-earning people pay throuout the year, the Gov gets more money between Jan and April than the rest of the year (tax time) from all the folks that owe money, and on top of that, people pay quarterly (every 3 months)... so the cash flow of the Gov ebs and flows anyway... but this is less relevant than the issue at hand is that we don't currently have the legal authorization to SPEND the money (the discretionary part of it anyway) right now. That is what the budget bill does - it provides the legal authority for agencies to spend $$ on X or Y or Z. Without that law passing, they can't spend what is coming in (the discretionary part anyway, the other htings mentioned above still get paid). So that means that $$ is just piling up.
- But... once the authorization DOES come (much to
@jeepinmatt and
@awheelterd 's chagrin), then it will just be back-dated to spend it how it would have been to begin with. So all of the people that are working right now and not being paid (because they are demed essential) and even all of the others who are furloughed - thanks to a bipartison law passed in 2019, under this same administration - will also be paid. Think of it like just putting all of those salary bills on credit - the cost will still come and have to be paid.
No money is being saved by being shutdown whatsoever EXCEPT for contract support activities that help with daily activities that aren't happening (like a program that stops bc Feds aren't there and some contractors cannot work on it wo them, or even just beuilding cleaning staff and such). Overall this is a pretty tiny amount though and pails in comparison to the waste of paying Fed employees to do nothing while on furlough, and the total additional direct cost is in the area of several $Billions. Not to mention decreased local and national revenue lost from people not traveling, holding back their $$ etc.
The point of all of the above is that we (your gov) are not only still burning cash.... your cash... its actually going to cost more in the long run, not less.
Now is it FAIR? Heck no.
Now to go back and address a few of your random questions...
- yes its theater, but in a different way than you are implying
- That $130m donation is so that troops can get paid NOW instead of waiting and getting back-pay later (like all other Feds will) so its easier to pay their bills. BUT that is just theater also bc $130m won't pay 1/2 of 1 single bi-weekly round of paychecks. Its peanuts and not solving any problem except political theater that also puts us in Mob-boss style debt with a billionaire.
- The US Treasury holds the money. Thats literally its job.
- re: "95% still humming along" - The vast majority of actual work in the government is contracted (hence only 4% is Salaries). Things haven't fallen apart yet because (1) a lot of people are working unpaid and (2) there's a short period where that contracted work is stil lrunning unsupervised (e.g. contracts already going and paid, and the people know what to do). But if it continues, those contracts start to fall apart and die. for instance all of the contract engineers on my team are funded until January. If we don't push money to them soon, they run out of money, the project ends and they get fired, I could be returning to have no team. I had a conversation w/ their lead on my way out the door, but I know problems and issues are arising that they need direction on that I'm not there to give.
The timetable for that kind of thing varies everywhere, but the point is things don't just stop immediately, its a slow and random attrition.
- National debt - how do you think we're able to run a deficit? The gov sells bonds, treasury bills, notes, etc. People (and entities... businesses... China...) buy them as an investment. The national prime rate you hear so much about is related to what the gov pays in interest.
- No we don't just "print money" (as a general rule... it does kind of happen but for other reasons) that would cause rediculous inflation.
- See above - most of the debt is held by the public, but China and other countries have been purchasing a lot of it. Wait wait isn't that a problem... yes, yes it is.
Instead of asking "why am I paying taxes this month" you should be asking, "why is the House of Representatives getting paid when they have been on recess of 6 weeks and will continue to be out indefinitely?" IMO ALL of Congress should be not getting paid but at least the Senators can say they are "working"....