This is the first of five posts on my blog on how discussion of taxes and budgets in the US needs to change to improve decision-making.<\/p>\n
Recent political debate and the media throws around costs of millions, billions and trillions<\/strong> of dollars even though there is no easy way for an ordinary citizen to evaluate the meaning of these terms. All of these are very big numbers. Consider the following numbers, sorted from largest to smallest. Which ones should we be worrying about?<\/p>\n $16.4 trillion <\/strong> US National Debt [1]<\/p>\n $3.7 trillion<\/strong> Total cost of wars in Iraq, Afghanistan and Pakistan [Reuters,2]<\/p>\n $1.2 trillion <\/strong> Size of tax increases and budget cuts in the fiscal cliff [3]<\/p>\n $1.1 trillion <\/strong> Federal deficit for 2012 [4]<\/p>\n $849 billion<\/strong> What is at stake in the Bush-era tax cuts for the wealthy, those earning more than $250,000, over ten years. [ABC news,5]<\/p>\n $ 807 billion<\/strong> The US government\u2019s estimate of the direct cost of the war in Iraq thru FY2012. [6]<\/p>\n $ 571 billion<\/strong> The US government\u2019s estimate of the direct cost of the war in Afghanistan and Pakistan thru FY2012 [6]<\/p>\n $ 100 billion<\/strong> Cost of the Iraq war that was used in discussions just before attacking Iraq [7]<\/p>\n $ 1.4 billion<\/strong> Financial spending for all presidential candidates, 2011-2012. [8]<\/p>\n $ 446 million <\/strong> The FY2013 annual budget for the Corporation for Public Broadcasting. [9]<\/p>\n $192 million<\/strong> The cost of the 2010 Newton North High School serving half of the Newton MA population [10]<\/p>\n $\u00a0 83 million<\/strong> Campaigning expenses, all candidates including outside spending, on Elizabeth Warren vs. Scott Brown Massachusetts Senate race, 2012. [11]<\/p>\n $ 11 million<\/strong> Proposed tax override for Newton MA in 2013 to pay for schools [12]<\/p>\n $ 54,000<\/strong> Cost of running the March special election to vote on the Newton override. [13]<\/p>\n US population: 315 million people<\/p>\n MA population:\u00a0 6.6 million<\/p>\n Newton population:\u00a0 86,000 (half served by Newton North High School, the other by Newton South High School.)<\/em><\/p>\n <\/p>\n $ 52,000\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 US National Debt per Person<\/strong> –\u00a0\u00a0\u00a0 High, but can be reduced if we try hard.<\/em><\/p>\n $12,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Total cost of wars in Iraq, Afghanistan and Pakistan per Person<\/strong> Not worthwhile to me, and 23% of our total US debt!<\/em><\/p>\n $ 3,800\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Per person size of the 2013 fiscal cliff, in taxes and reduced spending.<\/strong><\/p>\n $ 3,500\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Extra cost per person per year<\/span> to eliminate the federal deficit for 2012.<\/strong> Although similar to the preceding, note that this is for one year, while the above is over ten years\u2026 Even jumping over this cliff does not eliminate our deficit.<\/em><\/p>\n $ 2,700 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Ten-year cost per person of the Bush-era tax cut on those earning more than $250,000. <\/strong>A lot is at stake here, not small change.<\/em><\/p>\n $ 270 <\/em>Average per year cost per person of Bush-era tax cut on >$250k <\/strong>Doesn’t look like such a big number, and this is how much it reduces our per person annual deficit. <\/em><\/p>\n $13,500 <\/em> A<\/strong>verage per year cost per wealthy person (top 2%) of Bush-era tax cuts<\/strong>. Recall that the average income of this group is way higher than $250k $ 2,600\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The official direct cost per person of the war in Iraq<\/strong>.\u00a0 Why isn\u2019t there more discussion of this? <\/em><\/p>\n $ 1,800 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Cost per person of the Afghanistan war.<\/strong> Maybe Afghan was worthwhile, but I doubt it. <\/em><\/p>\n $\u00a0\u00a0 317\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Initial cost per person of the Iraq war used in selling it to the public. <\/strong>How could we have been so wrong?<\/em><\/p>\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Cost per person of the US presidential campaign. <\/strong>Maybe higher than I wish, but it is not going to break our budgets. Plus it is all voluntary, unlike the taxes.<\/em><\/p>\n $ \u00a0\u00a0\u00a0\u00a0\u00a0\u00a01\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Cost per person of federal funding of public TV and radio<\/strong>. A small portion of their total budget. Why are we talking about this at all?<\/em><\/p>\n $4,500\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Cost per Newton resident of the Newton North High School.<\/strong> High, but I bet we more than made it back in increased property values. Even ignoring that more than half was funded by the state, if there are 4 people per household, then this is only 2.6% of median property value in Newton. <\/em><\/p>\n $\u00a0 \u00a0\u00a013\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Cost per Massachussetts resident of the 2012 Senate race<\/strong>. Seems reasonable expense for making big decisions. Plus it only happens every six years for each senate race, so only $2 per year per person.<\/em><\/p>\n $ \u00a0128 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Cost per Newton resident per year of proposed tax override to help pay for schools.<\/strong> Definitely affordable.<\/em><\/p>\n $ \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0.62\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Per person cost of running Newton\u2019s March special election<\/strong>. Should not have even made the papers. Informed decision-making costs money.<\/em><\/p>\n Big cost numbers are easier to understand when expressed as a cost per person.<\/p>\n Some big numbers don\u2019t look very scary. Others look worse.<\/p>\n The numbers that get a lot of play in the media are not necessarily the right numbers.<\/p>\n Thought to Ponder: <\/strong>Why is it that almost no one in Newton is worried about having incurred a debt for one school in the amount of $4500 per resident, while citizens, and our Congress in particular, seems paralyzed to contemplate reducing our federal debt by a similar amount?<\/p>\n [1]\u00a0 http:\/\/www.brillig.com\/debt_clock\/<\/p>\n [2] Reuter. 2012. Cost of war at least $3.7 trillion and counting. \u00a0http:\/\/www.reuters.com\/article\/2011\/06\/29\/us-usa-war-idUSTRE75S25320110629<\/a> based on estimates from \u201cCost of War at http:\/\/costofwar.com\/<\/a> which is sponsored by the National Priorities Project.<\/p>\n [5] http:\/\/abcnews.go.com\/Politics\/fiscal-cliff-bush-tax-cuts-expire\/story?id=17907791#.UMnzFXfgztE<\/p>\n [4] http:\/\/www.gpo.gov\/fdsys\/search\/pagedetails.action?packageId=BUDGET-2012-BUD<\/a><\/p>\n [5] http:\/\/abcnews.go.com\/Politics\/fiscal-cliff-bush-tax-cuts-expire\/story?id=17907791#.UMoiRnfgztE<\/p>\n [6] Congressional Research Service, 2011. The Cost of Iraq, Afghanistan, and Other Global War on Terror Operations Since 9\/11. http:\/\/www.fas.org\/sgp\/crs\/natsec\/RL33110.pdf<\/a> updated continually at \u201cCost of War at http:\/\/costofwar.com\/<\/a>.<\/em><\/p>\n [7] Tom Russert Interview with Vice-President Dick Cheney, \u201cNBC News\u2019 Meet the Press,” Transcript for March 16, 2003.https:\/\/www.mtholyoke.edu\/acad\/intrel\/bush\/cheneymeetthepress.htm<\/em><\/p>\n [8] Center for Responsive Politics, 2012.Most Expensive Races 2012 Overview<\/em><\/p>\n http:\/\/www.opensecrets.org\/overview\/index.php<\/a> and<\/p>\n [9] Corporation for Public Broadcasting. 2012 Fiscal Year 2013 Operating Budget<\/a>. http:\/\/www.cpb.org\/aboutcpb\/financials\/budget\/ <\/strong><\/p>\n [10] Newton Tab. 2012. Newton North High School final cost $6M less than expected. http:\/\/www.wickedlocal.com\/newton\/news\/x1334618956\/Newton-North-High-School-final-cost-6M-less-than-expected#ixzz2EwkW8uLrhttp:\/\/www.wickedlocal.com\/newton\/news\/x1334618956\/Newton-North-High-School-final-cost-6M-less-than-expected#axzz2EwkHptlI<\/a><\/p>\n [11] Center for Responsive Politics, 2012.Most Expensive Races 2012 Overview<\/em> http:\/\/www.opensecrets.org\/overview\/topraces.php?cycle=2012&display=allcandsout<\/a><\/p>\n [12] http:\/\/www.newtonma.gov\/gov\/executive\/override.asp<\/a><\/p>\n [13] Newton Tab, December 12, 2012. Table showing breakdown of the various costs of the special election in March, 2013 on the override.<\/p>\n","protected":false},"excerpt":{"rendered":" Time to change the discussion #1 This is the first of five posts on my blog on how discussion of taxes and budgets in the US needs to change to improve decision-making. Recent political debate and the media throws around costs of millions, billions and trillions of dollars even though there is no easy way … Continue reading All Taxes and Budgets Should be Expressed as Dollars per Person<\/span> Sample of recent numbers in the news (or that should be there)<\/h1>\n
The relevant populations<\/h1>\n
Costs revisited with Ellis commentary<\/em><\/h1>\n
\n<\/em><\/p>\nLessons<\/h1>\n
Citations<\/h1>\n