The federal government runs on a cash basis in the sense that you mean
it.
Once again:
Funds disbursed is spending
Funds collected is revenue
Taxes not collected are not spending. For tax cuts to be spending the
aggregated government budget would look like this:
Revenue = Gross Domestic Product*
Spending = Outlays from government accounts + Taxes forgone**
*GDP = consumption + gross investment + government spending + (exports
− imports)
**Taxes Forgone = consumption + gross investment + (exports −
imports) = everything the government does not spend
On Jan 30, 2009, at 3:52 PM, Tom Piwowar wrote:
It is only income if you can realize it. That is basic accounting.
That is cash-basis accounting, used by very small businesses. Most
accounting is on an accrual basis. But that is neither here or
there. You
are just trying to evade.
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