'08 Tax cut?

[CoyoteMesc]

I read this morning that Bush was implementing new tax cuts for '08. $800/individual and $1600 Household. This is because the the crashing economy and helps to prevent or at least help bounce back a little easier if all goes to shit in the near future.

I have already filed '07 taxes....is this for '08 tax returns or an '08 cut for '07 taxes..?

Anyone smarter than me on this issue?

[Hippie3]

hasn't happened yet,
wait for details all you can do now.

[CoyoteMesc]

ok, thank you sir.

[rockawayrooms]

I read its still up in the air as to how much we are going to get,(500-800 for single1600 household)bush is pushing for more for us,so they say.Me/thinks and hopes <as i filed early as well>that we will get seperate checks for this around april.Article i read said they are trying to push this through as fast as they can.Hope this helps

[CoyoteMesc]

yeah it does
Thanks Rockaway
Sounds great so far.

/me whispers, "7+yrs and Bush finally gets another tally", hehe...maybe...lol

[eatyualive]

yeah stimulate the economy my ass. whats it gonna do pay rent for one month? shit thats not even half my rent! or pay the phone bill for one month for a company? lol what a joke. man this president needs to stop touching everything. anything he touches melts and dies. now, we are going to end up paying for this anyway. aren't we borrowing this money as well? jesus...

seriously, everyone that gets this money is already panicking, so they will only hold on to this money. something drastic and serious has to be done. you can't expect to put a bandaid on a gaping wound and expect it to last more than a week!

Right on bush, right on!

[Lazlo]

The tax break will be nice, but only time will heel this mess. We've yet to really feel the effects from the housing problems. One thing's for sure, get you credibility straightened out right now.

[Hippie3]

poor people have no choice but to spend it all
as soon as they get it
so this is a decent effort at a quick boost

[Lazlo]

True, but a large percentage of that won't see retailers. It will be a small stimulation, but not nearly enough to effective. We're in big trouble for sure. And we the consumers are the only ones to blame. People can blame the banks, credit card companies, mortgage lenders, exc., but we are the ones that had to have the goods. Over extended American's are to blame.

[CoyoteMesc]

seriously, everyone that gets this money is already panicking, so they will only hold on to this money. something drastic and serious has to be done. you can't expect to put a bandaid on a gaping wound and expect it to last more than a week!

Im not panicking. Nothing that CM can do for the US right now. But I do agree that the tax refund can help. No it will not 'fix' it but it can help.

Btw I prob wont hold on to that cash if we get it. I live paycheck to paycheck and there are so many things that my household NEEDS. New windows for example, cause they leak cold air in the house.

I also think that if the tax cut is passed that more Americans will be aware of the situation. (hint* wtf did I get this money again)

Its better to try and put some pressure on an open wound and pray that the medics arrive soon rather than say, "ah hell, what good is my hand gonna do half my legs missing." IMHO
You know what Im saying?

[eatyualive]

i guess thats a generalization. but im panicking, thinking i may not have a job if the economy is headed the way it looks to be headed.

cm, but realistically this is to boost the economy and the housing market correct?

if that is so then, most people are not going to buy a house because they have 800$ in their pockets. it may help out with one rent payment for one month, for me, not even one rent payment. so really, it may help some, but its not going to solve the problem.

personally im lucky not to have to live paycheck to paycheck but its not far from that. and this 800 dollars will temporarily help, hell ill take it but its still a quick fix that will still keep bleeding. its not going to solve any of the problems that we still face for the next 20 years here.

it is seriously a sad day when someone like me makes as much money a year as i do, and is on the verge of being poor and can't afford anything but a 1br. its pathetic! most ppl would give their right leg to have a good solid job that pays well. its just the money i make doesn't go as far as it should.


the parking lot at my work used to be jam packed. now its empty. many many people have lost jobs only to be replaced by low paying low tier jobs. one of my buddies has to move and live with his family now bc of the housing market crash. hes 35 years old. not by choice but this 800$ isn't going to help him. its far too little, too late if you ask me.

in retrospect, no one saw this coming this fast though. i think hippie said it best in another thread that not to blame anyone but the greedy who took the bait. so in a sense im arguing with myself in my head about this. im not blaming anyone, i just don't see this as a resolution. and bush ruins everything he touches. you cannot disagree with that.

Its better to try and put some pressure on an open wound and pray that the medics arrive soon rather than say, "ah hell, what good is my hand gonna do half my legs missing." IMHO
You know what Im saying?

i can agree in that respect. but its not going to solve anything. aren't we borrowing this money? its just going to increase our debt and cause more problems down the road.

[CoyoteMesc]

Yeah that sucks eats. I feel for you and the others when their careers are at the mercy of the economy.

On a side note.
I would suggest that you move south. You can have twice the house and half the payment in cities that have everything you could ever need.

SOME folks and not all, but some live beyond their means Eatyu. I fall into that category sometimes. I make GREAT money. More than most folks I know and
in many material ways I have less. Its about balance. Folks need to learn to save, build financial security, and not buy everything that classifies as 'the nicest they can afford'. Like I said, Im guilty of this. Financial freedom comes from living under what one makes. When folks make enough(and Im not picking on you cause im just as guilty) that they dont need to live paycheck to paycheck then they should be financially secure. One shouldn't have to worry about losing their home, car, food, utilities, etc for a good while...even if they had to change jobs to a far lesser paying one till the market picks back up.

Just my opinion.

[eatyualive]

luckily im not overextended and live a fairly modest living. i don't go out or spend money on anything but food now adays. its been more than a year since i spent one penny on a beer in a local bar. the only money i spend is on cable to watch tv and netflix basically. thats going out for me. im a good financial saving type of person. but, thats not true of everyone.

i live south, and let me tell ya man, prices are outrageous. was contemplating moving back to a college town to live cheap. but there are no jobs there.

your very right cm. around here. id say 85% of people are overextended. every house is for sale because everyone bought into and exaggerated housing market in 05. luckily i didn't buy into that false market at the time. and now looking back, glad i didn't. i was looking, but i had it in my mind to wait until bush was done doing damage and see what was really going to happen before making any long lasting decisions like that.

i don't think your picking on me, didn't even mean to sound defensive. and im glad you stated your opinion. its constructive criticism! im all about it!

but, in the case you stated, most people who are overextended are feeling the pain tenfold.

i know a lady, was making 150k a year, drives a jaguar, has a million dollar home, 3 kids, single mom and now, she has no money and no job. shes as good as done man. its sad this is the case, but she was robbing people to make herself richer. and i don't feel one bit of sympathy for her.

its sad but in reality i don't feel sorry for any real estate person who did take advantage of this market to screw ppl and rob them, and now they are feeling the pain.

fucked up thing was all the rentals here went condo conversion and they upped all the rent by like 200$ a month in times of desperation. everyone tried to rip everyone off to make a buck. and now all the real estate here is suffering. drhorton laid off 90% of its employees where i am. thats nuts man!

[CoyoteMesc]

True enough. Houses around here are up for sale also and new ones going on the market everyday.
Like I said, my job is very secrure(so i think) but the one thing that worries me is the prices on stuff like, heat, water, gas, etc going up so much that my job isn't enough and my kids start doing with out. Now that would make me panic.

I guess that windows should wait and a deep freezer filled with meat would be more realistic ...lol

[eatyualive]

im gettin scare now cm.

Reports: Major Layoffs for Yahoo Inc.
Reports: Slumping Internet Icon Yahoo to Shed Hundreds of Workers Amid Calls for a Shake-Up
January 22, 2008: 07:23 AM EST

NEW YORK (Associated Press) - Battered by slow revenue growth and the popularity of social networking Web sites, Yahoo Inc. is poised to lay off hundreds of workers, according to published reports.
The New York Times and The Wall Street Journal have both reported on the slumping Internet icon's cost-cutting plans, citing people familiar with the matter.
Precisely how many of Yahoo's roughly 14,000 employees will lose their jobs hasn't been determined, the newspapers said. A final decision could be announced Jan. 29 when Yahoo executives are scheduled to review the Sunnyvale-based company's fourth-quarter results.
If several hundred employees are dumped, it will mark Yahoo's most extensive layoffs since 2001 when the company was trying to battle back from the dot-com bust.
The payroll purge was first reported over the weekend by Silicon Alley Insider, a blog focused on investments in technology and media. The blog said Yahoo had drawn up a list of 1,500 to 2,500 jobs that could be eliminated, but Monday's reports indicated management doesn't expect the cuts to be that deep.
A Yahoo spokeswoman didn't immediately return calls seeking comment.
It won't come as a surprise if Yahoo jettisons workers, said Global Equities Research analyst Trip Chowdhry. He believes Yahoo has room to trim its work force by about 5 percent, or 700 employees, after phasing out some of its services, such as auctions and photos, during the past year.
Besides falling further behind Silicon Valley rival Google Inc. in the lucrative Internet search and advertising market, Yahoo also has been struggling to hold on to younger Web surfers as they spend more time on hip online hangouts like Facebook.com and MySpace.com.
The problems have slowed Yahoo's revenue growth even as spending on online ads accelerates. That trend has devastated Yahoo's stock, which has plunged by nearly 50 percent since the end of 2005. Yahoo shares finished last week at $20.78.
With shareholders clamoring for a shake-up, Yahoo co-founder Jerry Yang took over as the company's chief executive last June, replacing former movie studio mogul Terry Semel.
Yang has promised to re-establish Yahoo's position as the Web's most popular "starting point" while building a compelling ad network, but his progress hasn't impressed investors so far. Since Yang became CEO, Yahoo's stock price has declined by 25 percent while Google shares have surged by more than 15 percent.
Earlier this month, Yahoo opened its mobile platform so outside programmers can develop new applications for Yahoo pages accessed on mobile handsets. Yahoo hopes the mini-applications will bring the company more money from advertising.
The company also unveiled a redesigned home page for mobile phones that includes more content and enables visitors to designate material they want highlighted. Bank of America barely profitable; $5.3B hit

Company reports steep earnings decline, hurt by $5 billion-plus writedown on CDO-related assets

Cash payouts were down this year across Wall Street, but Goldman Sachs remained golden.




NEW YORK (CNNMoney.com) -- Bank of America, stung by a $5.3 billion mortgage-related writedown, reported quarterly results Tuesday that fell short of Wall Street's expectations.
Bank of America (BAC, Fortune 500) shares fell more than 5 percent in pre-market trading on the news.
The Charlotte, N.C.-based company said its net income plunged 95 percent to $268 million, or 5 cents a share, from $5.26 billion, or $1.16 a share, a year earlier.
Revenue fell 31 percent to $12.67 billion from $18.48 billion in the 2006 period.
Those results were much worse than analysts had anticipated. The company was expected to report a profit of 18 cents a share on revenue of $13.24 billion.
The company also said it took a writedown totaling $5.28 billion on collateralized debt obligation-related assets to reflect weakened demand for the mortgage-related securities and recent credit agency downgrades.
"Our fourth-quarter results were severely impacted by ongoing dislocations in capital markets and the slowing economy," Bank of America Chairman and CEO Kenneth Lewis said in a statement.
"Even given that environment, we certainly are not pleased with our performance," he added.
Facing rising credit costs, particularly in the company's home equity, homebuilders and small business loan portfolios, Bank of America said it ramped up its loan loss provisions by $1.33 billion during the quarter.
Bank of America is the latest financial service company to report disappointing results in the fourth quarter. Last week, Citigroup

The Fed, confronted with recession fears, cut a key interest rate by three-quarters of a percentage point today.

NEW YORK (CNNMoney.com) -- The Federal Reserve slashed two key interest rates by three-quarters of a percentage point Tuesday following an unscheduled meeting, citing continued concerns about a weakening economy and turmoil in the financial markets.

The Fed lowered its federal funds rate, which impacts how much consumers pay on credit card debt, home equity lines of credit and auto loans, to 3.5 percent from 4.25 percent.

The Fed also lowered its discount rate, which is what it costs banks to borrow directly from the central bank, by three-quarters of a point, to 4 percent.

This was the biggest rate cut by the Fed since October 1984. And it was the first cut between regularly scheduled meetings since a half-point cut on the day the market reopened following the September 2001 terrorist attacks

"Broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households. Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labor markets," the Fed said in a statement.
Read the Fed statement

Treasury Secretary Henry Paulson, speaking at the U.S. Chamber of Commerce in Washington Tuesday morning, said that he hoped the rate cut would restore some confidence in the financial markets and U.S. economy.

"I think it's very constructive and what I think it shows to this country and to the rest of the world [is] that our central bank is nimble and able to move quickly to respond to market conditions and that should be a confidence builder," he said.

Investors didn't appear to share this sentiment though. Stocks plunged at the open Tuesday morning, following two straight days of massive sell-offs abroad.

Wall Street had been betting that the central bank would need to initiate an emergency rate cut before its next scheduled meeting, which concludes on Jan. 30, in an attempt to help keep the economy from tipping into a recession.

Since September, the Fed has cut the fed funds rate to 4.25 percent from 5.25 percent. Investors have been clamoring for more, and bigger, rate cuts in the hopes that it will kick start a moribund economy and encourage businesses and consumers to spend.

And the Fed is still widely expected to cut rates again at its Jan. 30 meeting. According to futures listed on the Chicago Board of Trade, investors are pricing in a 92 percent chance that the Fed will lower the federal funds rate another half-point, to 3 percent, next week.
Paulson sees cooperation on stimulus plan

The Fed has also loaned $70 billion to banks through a series of three auctions since December to help mitigate the effects of the credit crunch on Wall Street. That appears to be working as the Fed said Tuesday that "strains in short-term funding markets have eased somewhat."

President Bush and Congress are also working on an economic stimulus package in order to help beleaguered consumers. Federal Reserve chairman Ben Bernanke endorsed this plan during a speech to the House Budget Committee last week and urged Congress to act "quickly."

But markets have plunged so far in 2008 despite this as investors continue to fret that the Fed may be doing too little too late to keep the economy from recession.

Still, others think the Fed needs to proceed cautiously, especially since it's fair to argue that aggressive rate cuts during 2001 may be the reason why banks are in the subprime mortgage mess they are in now.

To that end, William Poole, president of the Federal Reserve Bank of St. Louis, voted against a rate cut. According to the Fed's statement, Poole did "not believe that current conditions justified policy action before the regularly scheduled meeting next week."

[CoyoteMesc]

Thats crazy Eatyu,

We need to step up our home security. Lock up our gas tanks. Load the guns and keep nothing unlocked or visible or in plain sight. If things get as bad as many think its going to, the crime is gonna go through the roof. Good people will do dramatic things when their hungry!

[the jesus]

Adding to the national debt is a horrible way to stimulate an economy based on consumer confidence IMO.

[eatyualive]

Originally Posted by the jesus

Adding to the national debt is a horrible way to stimulate an economy based on consumer confidence IMO.

agreed.

here is some more recent info.


Rebates: No big deal for stores

Economists dismiss the tax stimulus proposal, saying it's unlikely to save retailers from the weakest sales growth in 6 years.


NEW YORK (CNNMoney.com) -- With 2008 expected to show the weakest growth for retail sales in years, Americans sorely need some incentive to keep shopping.
But economists say President Bush's proposed tax stimulus - unveiled last week - would merely provide short-term relief for consumers without curing the problems in housing, credit, energy and the job market causing an economic pullback.
Bush's plan would give refunds of up to $800 for single taxpayers and $1,600 for families. Congressional Democrats are also expected to come up with a stimulus plan, and the two sides have talked about a quick compromise to get the economy moving.
Tax rebates: Where's your check?
"It [tax stimulus] is a Band-Aid that's needed for now, but it won't get consumers out of the woods," said Michael Niemira, chief retail economist with the International Council of Shopping Centers (ICSC).
The National Retail Federation's (NRF) economic forecast calls for a 3.5 percent increase in annual retail sales in 2008. While that's above the 3 percent annual average, it would be the slowest pace of growth in six years.
Given that consumer spending fuels 70 percent of the nation's economy, the trade group maintains that the fastest way to rev up the economy is through the consumer.
"Quick enactment of legislation to put dollars back in consumers' pockets would fuel consumer spending and create additional demand throughout all sectors of the nation's economy," NRF's CEO Tracy Mullin said last week in response to the stimulus announcement. "We believe such legislation could be the boost our economy needs to set it on an upward path once more."
Niemira and others only partially agree with Mullin's argument.
"Any extra money that you give consumers at this time will help [spur spending]," he said. "But the typical view is that any temporary tax relief is not as effective as a permanent tax relief."
In Niemira's view, consumer spending is threatened by the credit crunch, the housing meltdown and higher energy prices.
"Unless this is corrected, the tax stimulus is just buying time," he said.
The Bush administration has gone the tax refund route before. In 2001, taxpayers were given payouts of between $300 and $600 in an attempt to boost a sluggish economy.
"It did soften the downside to the economy that year, especially after (the) 9/11 (attacks)," Niemira said.
Discount stores, warehouse clubs, dollar stores and other value-price retailers benefited from the extra spending money as more mid-income consumers traded down to these stores.
According to the NRF, retail sales grew 3.2 percent to $1.8 trillion in 2001. Sales during the key November-December holiday shopping months - a period that accounts for almost half of retailers' annual profit and sales - rose 3.6 percent to $368 billion.
However, the refunds provided absolutely no boost to retail sales the following year, when sales slowed to 3 percent growth. Holiday sales in 2002 dropped to an anemic increase of just 1.3 percent versus the prior year.
While Niemira sees some short-term positives, a stimulus plan could create other problems long term.
"This is a Catch-22 for the government," Niemira said. While something has to be done to bail out consumers, he said these rebates will also add to the national debt.
The total stimulus of about $150 billion will boost the national debt, but the impact will likely be marginal if this is only a one-off incentive, said Michael Englund, chief economist with Action Economics.
"If the stimulus package can boost consumer confidence and cause recession fears to dissipate, it could also boost the dollar and potentially interest rates," he said.
Richard Hastings, economic adviser with the Federation of Credit and Financial Professionals, was more critical of the stimulus proposal, calling it a "comfort patch."
"Unfortunately we don't have the same context now that we had in 2001 to make this an effective stimulus plan," Hastings said.
The big problem in his eye is inflation. "Health care costs are much higher than they were in 2001," he said. "Energy prices, food and services costs are much higher today."
Hastings believes the nation's economic problems run much deeper than how much people are spending at the mall.
"If the government is trying to prevent a recession with this plan, it's the silliest thing to do," he said


apparently they may give an even bigger stimulus package.

Bush won't rule out bigger stimulus package

White House may agree to go above $150 billion in economic aid



resident Bush won’t rule out the possibility of a larger economic stimulus package than the $150 billion program already outlined to reinvigorate the ailing economy, the White House said Tuesday.Bush last week offered the outline of a short-term economic boost, but the slumping of the global economic market since then has raised the question of whether he’s willing to broaden the package. Word of the administration’s thinking came on the same day that the Federal Reserve announced a three-quarter percentage point cut in a key interest rate to steady the economy.
Discussing the White House’s options, press secretary Dana Perino told reporters: “I’m not going to close the door, but I’m not suggesting that anyone believes it has to be bigger” than the roughly $150 billion figure already discussed. Later, Perino said that at this point the White House has not “seen higher numbers floated by members of Congress” and that Bush believes the growth package he has outlined is “the right amount.”
Story continues below ↓advertisement


The president last Friday put forward the broad outlines of a stimulus plan that would include tax cuts for individuals and businesses. Bush said any plan, to be effective, would need to represent roughly 1 percent of the gross domestic product, or about $140 billion to $150 billion.
On Wall Street, stocks plunged at the opening of trading, propelling the Dow Jones industrials down about 400 points after the Fed’s announcement of its rate cut failed to assuage investors fearing a recession. U.S. markets joined stock exchanges around the globe that have fallen precipitously in recent days amid concerns that a downturn might spread around the world.
U.S. Treasury Secretary Henry Paulson also welcomed the Fed's hefty interest rate cut.
“This is very constructive and I think it shows this country and the rest of the world that our central bank is nimble and can move quickly in response to market conditions,” Paulson said after the Fed cut the benchmark short-term interest rates by three-quarters of a percentage point.
Bush was meeting with congressional leaders at the White House later Tuesday to discuss details of the economic package, which both sides hope to on quickly.
Perino said the White House is not proposing an even bigger economic package at this point, but she declined to rule one out, either. The sharp decline of markets in the United States and around the globe is tied in part to the perception that Bush’s outlined stimulus package would not do enough to avert a recession.
Perino said the White House does not comment on daily fluctuations in the market. But she did say that people should have confidence in the underlying strength and long-term prospects of the U.S. economy.
“We are not forecasting a recession,” Perino said. “Clearly there is a slowdown.”
Earlier Tuesday, Paulson told the U.S. Chamber of Commerce that Congress and the administration need to agree quickly on a package of tax cuts. “Time is of the essence and the president stands ready to work on a bipartisan basis to enact economic growth legislation as soon as possible,” he said.
The Fed’s decision to slash the federal funds rate — the interest that banks charge each other on overnight loans — was the biggest single cut of its kind in recent memory. The Fed cut the rate to 3.5 percent from 4.25 percent — a move that represented the most dramatic signal it could can send of its concern about a recession. It said “appreciable downside risks to growth remain” and held out the prospect of further rate cuts.
Any compromise stimulus package likely would involve tax rebates, business tax cuts and funding for a Democratic-led call for additional food stamp and employment aid. Paulson said he was optimistic the administration and Congress could “get this done long before winter turns to spring.”
The administration’s initial efforts also failed to reassure global stock markets, which plunged Monday on rising fears that trouble in the U.S. economy could translate into weaker economic activity worldwide. U.S. markets were closed Monday for the Martin Luther King holiday.
Both the White House and leading lawmakers already have displayed flexibility not witnessed last year in battles over spending, taxes and children’s health insurance. Lawmakers appearing on weekend televisions talk shows promised bipartisanship.
Bush has advocated a growth package of about $145 billion, centered on tax cuts for business and rebates for individual taxpayers. He did not announce details, but administration officials are focusing on rebates of $800 to $1,600 for individuals and couples and so-called bonus depreciation to allow companies to deduct 50 percent of business investments made this year. He also supports help for small businesses with more generous write-offs on equipment purchases.
On Capitol Hill, talks between Pelosi and House Minority Leader John Boehner, R-Ohio, have focused on smaller tax rebates of perhaps $500 for individuals, bonus depreciation and small business expensing, as well as Democrats’ call for boosts in unemployment benefits, food stamp payments and the Medicaid health care program for the poor and disabled.
The rush to produce an economic stimulus bill comes as recent data on the economy is increasingly negative and as the issue has become a top priority with voters.
Associated Press and Reuters contributed to this report.




ok sorry won't post anymore long articles. just thought it was all relevant.

[CoyoteMesc]

When you say 'adding to national debt' aren't you mislead? The money that we're talking about is money that we just paid in, not Government money yet. Thats like saying that if my employer didnt pay me for a couple hours worked he added debt to me. Not true, the debt is still the same. Of course until its time to pay the bills and thats when the spending of 8-1600 would play into factor. IE: we spend our 8-1600 on what ever and we are in a since 'paying the bills'.

Thats the idea or at least my perception about it.

[the jesus]

Huh? The government doesn't live paycheck to paycheck. That money was spent a long time ago.

Look at it this way, that $800 per person is tax money that was going to go into the federal government, whether it pays for roads, schools war or whatever, it is money the federal government no longer has coming in. This adds to the debt. They need to make up for it somewhere.

You just can't increase spending, run up the largest debt in history, and then cut taxes. How long would a business last if it continually spent more money than it took in?

Bush did the exact thing his father did. Remember the last recession, yup it was right at the end of Bush number ones reign, granted he inherited the house of cards known as Reaganomics. This Republican idea of trickle down economics simply doesn't work. The number one factor in our economy is consumer confidence. Without it we are screwed. The number one factor effecting confidence? The national debt.

[CoyoteMesc]

it is money the federal government no longer has coming in. This adds to the debt.

True, no longer coming in but it doesn't ADD to the debt.
Its not their money just yet. Its ours. They debating whether to take it or give us some back. Its not like they are giving us money set aside from previous years income tax..


This country could run with out income tax.
I agree that giving our money back to us wouldn't put a stop to the decline we face, but it could help.
Do you know how the income tax became as we now know it? It wasn't designed for Roads, schools, or what ever.

Huh? The government doesn't live paycheck to paycheck. That money was spent a long time ago.

lol, that was funny. Was that a stab at me cause I do live paycheck to paycheck.

The Government does the same thing that many people do....They spend it before they get it. The money I paid toward my income tax in 07 may have a destination in mind but it isnt spent....lol

My point is this. If you buy a truck for 35k, you are in debt to the bank for 35k. If you dont get the money you expected or you were counting on...so what, your still in debt 35k. not 35k plus what you were counting on.

How long would a business last if it continually spent more money than it took in?

The US doesn't run like a business. Because its not a business, its a Country.