The AP reported today that the total debt of this country is now $13,310,379,000,000.00.
A staggering sum of money, so let’s try to make this number a little more understandable.
According to the 2009 IRS Data Book, there were 144,103,000 tax returns filed in 2009, but according to Scott A. Hodge of The Tax Foundation, 36% of those filing returns owed no taxes or received more money back in tax refunds than they actually paid into the system. This leaves 92,225,920 households in the U.S. to carry the tax burden PLUS pay for all of the credits that went to those with a negative tax liability.
Therefore, in 2009, only 92,225,920 households in this country actually can be considered taxpaying households. In order to pay off the current National Debt owed by the U.S., each tax paying household would need to write a check for $144,323.62.
The U.S. Census Bureau estimates that in 2009 there were 113,567,967 households in the U.S. of which 36% or 21,342,047 households pay no taxes or receive payments from the Federal Government through the tax code. This report also indicates that each household represents 2.54 individuals. Therefore, each member of tax paying households would have to pay $56,820.32 in a lump sum to pay off the Current National Debt. Once.
However, the U.S. Federal Budget Deficit now grows by at least $1,437,231,000,000.00 annually and at this rate each of the individuals who paid the $56,820.32 to clear the old debt would have to continue writing a check each year for an additional $6,135.36 just for the U.S. break even.
Scared yet?
Turns out these calculations are extremely conservative when compared to USDebtClock.org’s calculations. According to their chart, each citizen (taxpaying or otherwise) owes $43,061.00 and each taxpayer owes $120,379.00.
I suspect that the variation comes from differences in figuring out exactly who is a taxpayer. My calculations include dependent children and I’m guessing their calculations do not.
But, I think it is instructive to realize that if you are a husband and wife who gave birth to a child today, your child entered this world owing at least $56,820.32.
Sobering isn’t it?
The definition of insanity is to continue doing the same old things hoping for different results.
November 2nd is coming.
Are you ready to try some new ideas?
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