LETTERS TO THE EDITOR:> THE DEFICIT, THE BUDGET AND POLITICS

To the Editor:

As it does each year, the New Year's mail brought tax forms for us to complete and return. The back page of the 1993 booklet of forms and schedules contained the following information: "In fiscal year 1992, ... Federal income was $1,090.5 billion ..." "... 79 percent of total outlays were financed by tax receipts".

These statements piqued my intellectual curiosity since most of the financial and economic pabulum taxpayers receive supports the contention that the reason the U.S. Government has a deficit is because taxes are not high enough and, therefore, the government does not receive enough money to support essential services.

A cursory look at the WORLD ALMANAC and Book of Facts (1993) provides information from the U.S. Treasury that shows:

FINANCIALLY:

1. Since 1934 (59 fiscal years) the U.S. Government has had a deficit 51 years (86 percent).

2. Only eight (8) years has the Government had a surplus. By surplus is meant receiving more money that was spent. The last surplus was in 1969. Other fiscal surplus years were: 1960, 1957, 1956, 1949, and 1947.

3. In nine years (15 percent), fiscal receipts declined compared to the previous year. The last time this happened was in 1983. Also, in nine years (15 percent), fiscal outlays declined compared to the previous year. The last year this occurred was 1965.

In 85 percent of the 59 fiscal years since 1934, receipts and outlays have INCREASED compared to the previous year.

The year 1955 was the last time a reduction in receipts compared to the previous year was ALSO matched with a reduction in outlays compared to the previous year. The year, 1983, for example, reflects a decrease of $17,204 million in receipts while outlays increased in 1983 by $62,621 million.

POLITICALLY

1. There have been ten (10) presidents from F.D. Roosevelt through George Bush covering this 59 year period. Five have been Democrats and five have been Republicans.

2. From Joe Robinson (Arkansas) through George Mitchell (Maine), Democrats have held the position of Majority Leader in the U.S. Senate 49 (83 percent) of the 59 years since 1934.

Bob Dole (Kansas) was the last Republican to hold that title (1985-1987). The political party that elects the majority leader is the party of power, i.e., the political party that has more votes than the other political party.

3. From Hank Rainey (Illinois) through Tom Foley (Washington), Democrats have elected the Speaker of the House of Representatives 55 (93 percent) of the 59 years. Again, the political party making this election is the political party in power. Joe Martin (Massachusetts) was the last Republican to be elected Speaker (1953-1955). It will soon be 40 years since the Republicans were the party of power in the House of Representatives.

CONCLUSION:

Again, deficits occur because elected officials DECIDE to spend more money than the government takes in. The U.S. Government received $1,090,500,000,000 but spent $1,380,900,000,000. One trillion is defined as the number 1 followed by 12 zeros. The Government received in excess of one trillion dollars, but it was not enough to pay for "essential services".

Republicans and Democrats have shared the Office of President since 1934. The Democrats have controlled the Congress of the United States since 1934. In the Senate, 83 percent of the time and in the House, 93 percent of the time. The House of Representatives is THE major player in the development and passage of the final budget after the President has submitted a budget for congressional review.

The United States government continues to have a deficit because elected officials spend more money than is received. Deficits will continue until fiscal restraint is relearned by national politicians. It is that simple!

KEITH A. RUSSELL, Phd, CMA

Department of Accounting & Finance

Harrison College of Business

Cape Girardeau