Recent news that student debt loan and defaults has now reached an all-time high is frightening.
The only thing worse than $1 trillion in student loan debt is our $16 trillion and growing long-term federal debt.
The IRS audit of returns in early 2012 revealed that Americans owed $450 billion from 2006. Subsequently, only $65 billion has been collected to date leaving a balance of $385 billion from 2006 tax returns still unaccounted.
What about the millions of Americans who earn a comfortable six-figure income while at the same time collectively owing billions in unpaid student loans?
Surely our Internal Revenue Service can run a cross check before completing a review of any individual or corporate filing. The IRS can also cross check with state, city county and town tax collection agencies. Why continue processing billions in yearly tax refunds to individuals, corporations and former students who owe Uncle Sam hundreds of billions?
Just collecting 10 cents on the dollar could easily pay for all the additional Sandy Storm emergency relief funding we are looking for from Washington. There still would have been some money left over. The balance could be used as a small down payment toward reducing our $16 trillion dollar federal debt.
There is also a clear relationship between providing financial assistance to deal with Superstorm Sandy and the fiscal crises in Washington on how to deal with our $16 trillion and growing national debt. Everyone agrees that there is justification for appropriating a significant portion of President Obama’s proposed $60 billion Superstorm Sandy relief effort. It is a question of finding $60 billion within a $3.7 trillion dollar budget along with how quickly the funds can be spent.
Our national unemployment rate still averages 8 percent. This does not count the 7 percent more who have given up looking and the millions more who are working part time.
Many working at or a dollar or two more than minimum wage and or part time desire a better paying full time job. There is clearly less disposable income for people of Great Neck, New Hyde Park, Herricks, Williston Park, Garden City and other neighbors to spend.
Many former two-income households have to live on one pay check. Some face both wage earners out of work. Don’t forget those who have exhausted their unemployment insurance and savings.
All of the above has resulted in far tighter family budgets. This translates to eating out less frequently or dining at less expensive restaurants. Repairing and making due with existing clothing, appliances, furniture, household items and automobiles rather than buying new has become a regular part of life. People are postponing major house renovations such as painting, siding, roof shingles, bathroom and other major upgrades. You also have people foregoing nonessential pampering. Isn’t it time for Washington to live within its available existing revenues without excessive borrowing just like millions of ordinary citizens do?
New York’s own Sen. Charles Schumer is correct that there has been a 100-year tradition to authorize and appropriate emergency funding under extraordinary circumstances without looking for set asides of existing funding to pay for it. This tradition was established long before our national debt was in the trillions and growing by one trillion per year.
Schumer misses several key related issues. It is not ethical to bribe other Senators by allowing them to add on their own pork barrel member items which have no relationship to Superstorm Sandy. They now total in the billions to the existing proposed relief bill.
This was successfully used as a quid pro quo for the 12 Republican along with other Democratic senators who joined the majority to vote in favor of the full $60-billion Senate bill. Schumer knows it is not kosher for taxpayers who will have to pick up the tab at a later date.
He ignores our national debt, which now exceeds $16.19 trillion. This averages $52,135 per citizen.
Our legal debt limit of $16.39 trillion has officially ran out at the end of December due to our excessive current rate of spending.
For the past four years under President Obama, we have had to borrow over $1 trillion per year for a total of almost $5 trillion to finance our national budget! (Remember that Democrats controlled the House during the first two years and Senate for all four years).
Former President Bush with the full support of both Congressional Democrats and Republicans ran up a similar tab of borrowing almost $5 trillion over eight years. This bipartisan borrowing binge can’t go on forever without dire economic consequences!
Schumer fails to identify how Uncle Sam will come up with $60 billion in new funds when we have to deal with this immediate far larger fiscal crisis.
Senate Republicans had originally offered a scaled down $24 billion package. Some might say a glass half full is better than one that is half empty. This was a good start for negotiating a compromise number considering Uncle Sam is essentially broke.
A recent analysis by the independent non partisan Congressional Budget Office revealed that only $9 billion could be spent in the next 9 months and $38 billion would be spent starting in federal fiscal year 2015.
Schumer’s arrogance “that it is my way or the highway” is disappointing to those who are looking for bipartisan cooperation and compromise. No wonder political gridlock continues in Washington. Perhaps Schumer is part of the problem as opposed to part of the solution. Voters should remember this in 2016 when he stands for re-election..
Larry Penner
Great Neck
