Squeezing a penny out of a barrel

Since when did we stop believing Federal Government tax hikes go to their intended funds? Did we ever believe it?

The Federal Government facing a deficit again this month doesn’t surprise anyone. President Obama introducing legislation to raise taxes doesn’t raise eyebrows, either. The tax hike is for a special fund reserved for the clean-up of oil spills. The timing is obvious. That doesn’t surprise anyone either.

It’s only $.01 per barrel, but it would average $50 million for the next 10 years.

From Reuters:

“For the first seven months of fiscal 2010, which ends September 30, the cumulative budget deficit totals $799.68 billion, down slightly from $802.3 billion in the comparable period of fiscal 2009.”

And then from the UK’s Times:

“Under a $118 million spending plan outlined in the package, people affected by the spill — such as fishermen who have lost their livelihoods because of the contamination — will be granted financial assistance, and federal agencies will get additional funds to monitor the slick and assess its impact.”

With such a cash strapped government, do we really think the government will keep the “Oil Spill Liability Trust Fund” sacred?

I’m running a personal deficit this month. We had our first child this month. Babies are expensive. Because of that, do you think I’m going out to drink at an expensive bar with coworkers after work? No. I’m raiding those funds for the important things. That blow fund, the “grease that makes everything run smoothly,” has been destroyed this month. I can do that. I also reigned in our spending. We're selling a vehicle- a 2004 Ford Explorer Sport Trac, low miles. This happens when money is tight.

So, when will the Fed rein in their spending?

I don’t have an economics degree, but I do find it peculiar that these headlines came up on the same day. It would seem more pertinent to see this as Obama’s staff searching every nook and cranny and tax loophole possible and to plug them all up. It’s an $82.69 billion deficit for April. Ouch.

Wish I could just charge more from my employer. I’d squeeze them, too, but the Feds need it more. Someone has to pay for my healthcare.