If a man earned a monthly income of $7,000 per month and earned an additional $5,000 on investments, his total monthly income would be $12,000. If he had set up a budget based upon his $7,000 monthly salary, he would have a monthly surplus of $5,000.
If he spent $8,000 in a month he would have a $1,000 deficit. The obvious solution would be to make up the shortfall by withdrawing $1,000 from his accumulated assets.
When the Federal Government establishes their budget based upon their anticipated income generated from taxes. They do not include the amount of money they anticipate that they will earn on their invested assets.
The Federal Government collected 2.5 trillion dollars in taxes but earned another 5 trillion dollars on their invested assets. The total money available to run the country would be 7.5 trillion dollars. If the government were to spend 3.8 trillion dollars, we would have a surplus of 3.7 trillion dollars.
By using their creative accounting system, Congress claims to have spent 3.8 trillion dollars and only collected 2.5 trillion in taxes. They want us to believe that "We the People" have a 1.3 trillion dollar deficit. Rather than tapping the accumulated reserves, Congress wants to raise our taxes and/or reduce the services provided by the government.
If no taxes were collected by the Federal Government, they would still be earning more than enough money to finance the government. Can you imagine what would happen to our economy if the Income Tax were to be eliminated.