The Moody's Corporation held their U.S. credit assessment at a top rating for now. Despite avoiding a downgrade, that company provided a sobering assessment for investors worldwide. Moody’s said the United States and other major Western nations have moved “substantially” closer to losing their stellar ratings. The ratings are stable, but their distance to downgrade has in all cases diminished considerably, the credit ratings agency pointed out.
The United States Federal Deficit is projected to fall from $1.3 trillion to $800 billion by 2015. The U.S. real GDP may grow from $13 trillion to $16 trillion or more in the same year. Defense is held to a constant $900 billion in the same four-year period. If the line is held at $900 billion, the defense budget will decrease from the current 7 percent of GDP to 5.6 percent of GDP but not down to the 3.5 percent of GDP at the conclusion of President Clinton's term. Essentially, the disengagement from the Iraq and Afghanistan wars make up the difference in DOD spending.
In 1941, the rich (the captains and managers of industry) paid 55 percent of all federal taxes and workers 45 percent. A top rate of 90 percent or higher taxed the incomes of the wealthiest citizens. President Franklin D. Roosevelt, elected with considerable labor support, said that no American should have an income of more than $25,000 after taxes; about $350,000 in today’s dollars. And so, the question involves who will pay the bill for the dual wars of the previous decade, as well as the winding down of those wars in Iraq and Afghanistan.