Via The Hill:
President Obama said Republicans in Congress were threatening to make the United States into “a deadbeat” and a “banana republic” with their maneuvers to tie the federal budget and the debt ceiling to defunding ObamaCare.Here is the 2013 federal budget and revenue for the fiscal year that ends October 1, 2013.
Revenue in the 2013 budget is $2.9 trillion and spending is $3.8 trillion. That means we borrow $900 billion. That's where the debt ceiling comes into play. We can see mandatory spending is $2.3 trillion. Add back in the rest of the military spending, except $140 billlion for new procurement, the payment of $246 billion on the national debt interest and we have a grand total of 3.07 trillion in spending. Since revenue was 2.902 trillion, we only have to come up with $160 million. The actual budget was different than the on passed by Congress and signed by Obama. Due to the sequestration and increased tax revenue, the CBO estimates the actual deficit at $759 billion. That is a savings of $161 billion. This covers the $160 billion gap. Without raising the debt ceiling, we have paid all mandatory federal spending, paid all the defense budget, except for delaying new procurement, and paid the interest on the national debt. Now tell me how not raising the debt ceiling will cause the US to default on it's debts?
Total revenues and spendingThe Obama administration's February 2012 budget request contained $2.902 trillion in receipts and $3.803 trillion in outlays, for a deficit of $901 billion. The budget projects a reduction in the deficit to $575 billion by 2018 before rising to $704 billion by 2022.
Total receipts (in billions of dollars)::
Total outlays by agency (in billions of dollars):
Item Requested Individual income tax 1,359 Social Security and other payroll tax 959 Corporate income tax 348 Excise tax 88 Customs duties 33 Estate and gift taxes 13 Deposits of earnings and Federal Reserve System 80 Other miscellaneous receipts 21 Total 2902