Tuesday, February 18, 2014

Stuff It Oregon -- Time To Reverse Engineer Generational Debt

The lying, loony, liberal scum (sorry for the redundancy) latest give away scheme is to open up a $500 savings account (dubbed a universal savings account) for every baby that is born in the United States (and ultimately, Bolivia, El Salvador, Belarus, Indonesia and Bangladesh as well, no doubt). Ron Wyden (D - Oregon), who hopes to soon become Chairman of the Senate Finance Committee, is the mouthpiece.
Ron Wyden and his wife Nancy at Yankee Stadium.
Wyden's family lives in New York while he
represents Oregon in the United States Senate.
Speaking earlier this month at the University of Southern California School of Law and the Urban-Brookings Tax Policy Center, Wyden said universal savings accounts for newborns would “really put a dent in the poverty rate.” He described the country’s current tax code as a “dysfunctional, rotten mess of a carcass.” 
These hypocrites cannot open their mouths without lying. To review wacko Wyden's proposal on his own terms, let's look how the the federal government defines the poverty rate. It varies by household size.


 2013 Federal Poverty Guidelines

 Household Size
 100%
 133%
 150%
200% 
 300%
400% 
 1
$11,490
$15,282
$17,235
$22,980
$34,470
$45,960
 2
15,510
 20,628
23,265
  31,020
46,530
62,040
 3
19,530
 25,975
29,295
  39,060
58,590
78,120
 4
23,550
 31,322
35,325
  47,100
70,650
94,200
 5
27,570
 36,668
41,355
  55,140
82,710
110,280
 6
31,590
 42,015
47,385
  63,180
94,770
126,360
 7
35,610
 47,361
53,415
  71,220
106,830
142,440
 8
39,630
 52,708
59,445
  79,260
118,890
158,520
 For each additional person, add
$4,020
 $5,347
$6,030
  $8,040
$12,060
$16,080

Source: http://www.familiesusa.org/resources/tools-for-advocates/guides/federal-poverty-guidelines.html


When a baby is born, a household needs to generate an additional $4,020 in income per year to stay above the poverty line. That accumulates to $72,360 by the time a child reaches age 18 and is no longer considered a minor.  Five hundred dollars puts a dent in that? It barely mars, in fact it doesn't even scratch the surface of the actual challenge. The only way to put a dent in the poverty rate is for the parents to get jobs, real jobs.

Wyden's proposal is a shell game. This country has no money to give anyone. Indeed, when every child is born today he or she assumes $55K in debt

A rational and reasonable proposal would take on eliminating that diabolic inheritance. Let's up the $500 to a still modest (relative to the inherited debt) but easily achievable $1,200 per birth, and reduce the federal deficit by that amount for each child born. Here is how the math works.

Live birth data form CDC.

Even though the annual contribution is modest ($4.7 billion the first year), by the time today's babies reach the age of being fully privileged adults, more than a trillion dollars will have been shaved off the accumulated debt. That's a small down payment on eliminating the immense burden that our spendthrift society is passing along to the next generation.







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