Why does the US borrow money from China, Saudi Arabia, and others to pay for the Bush Tax Cuts?
This burden is later passed to all citizens in a form of taxes to pay the interest of the loan and the principal. Does it make sense to you? Leading Foreign owners of US Treasury Securities (July 2010) Nation/Territory billions of dollars percentage People's Republic of China (mainland) 846.7 20.8% of USA Debt Japan 821.0 20.2% of USA Debt United Kingdom 374.3 9.2% of USA Debt Oil exporters1 223.8 5.5% of USA Debt Caribbean Banking Centers2 150.7 3.7% of USA Debt Brazil 162.2 4.0% of USA Debt Hong Kong (Special Administrative Region) 135.2 3.3% of USA Debt Russia 130.9 3.2% of USA Debt Republic of China (Taiwan) 130.5 3.2% of USA Debt Grand Total 4065.8 100 http://en.wikipedia.org/wiki/United_States_public_debt
Politics - 5 Answers
Random Answers, Critics, Comments, Opinions :
1 :
Income tax receipts SKY-ROCKETED -- due to expanding economy -- after Bush's tax-cuts went in effect... Too bad, Bush and Republican-owned Legislature failed to keep SPENDING restrained :-(
2 :
You have confused yourself. Over spending by Congress has been going on for 70 years. Lowered tax rates have generated more in total tax dollars. The problem is too much spending by the federal government. Repeat that sentence out loud for 100 time is a row. It may sink in.
3 :
Beautiful way to totally confuse a question. Your numbers only refer to foreign debt. The majority of treasury bonds are held in the US. US treasury bonds are the most secure investment in the world. Other countries don't buy them to do us a favor. They buy them because they're a better investment than their own bonds.
4 :
There are know tax cuts to pay for. Peace
5 :
The government has to borrow money to feed its spending addiction. It has this addiction because spending appeases voters in the short-term. Unfortunately, tightening the belt is always put off "just a few more years". Such lack of long-term (or even medium-term) sight leads to disaster.
