House Republicans are trying to force Democrats to accept steep spending cuts by threatening a Treasury default that would crash financial markets and push the economy into a deep recession. They claim there’s “waste” in the federal budget, but haven’t identified it, nor have they proposed a budget of their own.
For good reason: “The problem that House Republicans are facing is that the budget is heavy with things that people like, such as Social Security, healthcare, the military, veterans, transportation and education. Anything not mentioned in those categories is less than one percent of the federal spending, as displayed in the chart from the U.S. Treasury Department below.” (See story here.)
By the way, it should be noted that Social Security and Medicare, which comprise 31% of the total budget, are entirely supported by FICA taxes. (For now.) They’re included in the overall budget as a matter of accounting policy, not because they contribute to deficits (they don’t, yet). Take away those two items, along with debt interest, and about the only big expenses you have left are Medicaid and defense.
For an interactive version of the chart and more details, go here.
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