AMERICA’S BEST INVESTMENT OPPORTUNITY
What would you do if you had an investment opportunity that paid you $7.00 for every $1.00 you invested? If you need a hint, look at what Congress is doing–and then do the opposite. The NY Times recently reported that the IRS takes in $7.00 dollars for every dollar Congress puts in the IRS budget.
If you have any friends and neighbors blathering on about how “Government is the problem, not the solution” or some similarly mindless sound bite, ask them to explain that. Take a look at just these few words from the NY Times and then go read the story if you get a chance.
“On a budget of $11.8 billion in the 2012 fiscal year, the I.R.S. collected $2.52 trillion, meaning it brought in $214 for every dollar it spent. On the margin, the I.R.S. is estimated to bring in about $7 for every additional dollar it spends or, put another way, it costs the federal government $7 for every dollar that is cut from the I.R.S.’s budget. The I.R.S. will receive even less money if Congress allows across-the-board spending cuts to materialize in March as currently scheduled. . . .”It is ironic and counterproductive that concerns about the deficit are leading to cuts in the I.R.S. budget, when those cuts are making the deficit larger,” Ms. Olson wrote in the report. “No business would fail to fund a unit that, on average, brought in $7 for every dollar spent. Shareholders would rebel and bring lawsuits, or at least oust the management or board of directors.”