Thursday, February 2, 2012

News That Will Make You Angry

We learned that 279,000 federal workers owe $3.4 Billion in back taxes. Why can't the government collect taxes from its own employees? And shouldn't it be a requirement of employment that all federal employees pay their taxes on time?

The Treasury Dept has raised the amount of money taxpayers will lose in the auto bailout. The bailout is now projected to loose $23.8 Billion. This is up from $14 Billion last fall. The basis is the low value of the 500 million shares of GM stock the treasury owns. The stock would have to be valued at $53/share in order to break even. GM was trading at about $24.

The CBO tells us that federal workers are paid an average of 16% more than emplyees in the private sector. That's because the private sector has been cutting costs in response to the lousy economy. When was the last time you got a raise? The government doesn't have to as it doesn't need to make a profit. A chart from the CBO report is below.


And finally, the CBO says taxes will increase about 30% over the next 2 years!

4 comments:

Old NFO said...

If it were me, they didn't pay their taxes, their asses would be on the street 60 days later!

WR Olsen said...

I suspect you will find that the majority of the people who owe those taxes are political appointees or staff members for politicians. The average civil service employee doesn't fall into those catagories and tries to do good for their salary.
I'm not a government employee but those I do know are usually good people...but I do agree with Old NFO

Brigid said...

"The government workers get paid more data was a bit skewed in the media. The majority of the jobs that paid that much more required high school educations only. Those with college degrees only made about 2% more. Those with graduate degrees, and post graduate degrees, made up to 23% less than industry. The security of such work and actually thinking one can do something good keeps a few good folks in those positions.

If you don't pay your taxes, you shouldn't have the job. Just saying.

Peripatetic Engineer said...

That's why I put the bar chart in the post - to show how education changed the numbers.

I have a post graduate degree and work in the oil industry. I know a few guys who have left to go work for the guvment, but very, very few do. But here's the conundrum - Industry has the best and the brightest. They have to ask the government regulator, who doesn't have that many bright lightbulbs, for permission to do anything.