The blessed country

By Jim Thompson
HCP columnist

Agnostics and atheists, I’ll save you some time: Don’t bother to read this column.  

For the rest of you, I suggest you consider 1st Timothy 2:1-2: “I urge, then, first of all, that petitions, prayers, intercession and thanksgiving be made for all people – for kings and all those in authority, that we may live peaceful and quiet lives in all godliness and holiness.”

In about 15 months, we are going to celebrate the 250th anniversary of the United States. I am having a little trouble wrapping my head around this, for I can remember celebrating the 200th anniversary like it was yesterday. That was the year we elected Jimmy Carter as president.

Looking back over the 250 years, I am amazed that we were given the right president at the right time in nearly every case. Some of them I didn’t like, and I have ranted and raved about them here over the years. Yet, when I step back and look at the big picture, these 45 people (Cleveland had two discontinuous terms, and so now has Trump) and studying their opponents, one concludes that we got what we needed when we needed it.  

This includes Trump today.

We hear lots of complaints about DOGE and the federal employees losing their jobs.

We hear nothing about the national debt. In December 2024, the U.S. national debt as of percentage of GDP (Gross Domestic Product) reached 121.87%. At the end of World War II, it was 106.1% of GDP. It was a low of 23% in 1974. 

In 2024, the interest payments on the national debt was $881 billion. It was $476 billion in 2022.  It is projected to reach $952 billion in 2025.

In 2023, the latest year available, Medicare costs were $1.03 trillion, and Medicaid costs were $871.7 billion. For 2023, the Social Security expenditure by the federal government was $1.35 trillion.

We need a president who can get these numbers under control for if you think they are bad now, without some discipline they are going to completely blow up. The federal government has little more magic in bringing these numbers in line than you do with your personal budget.  They have to cut costs or raise taxes.

It is like you have overspent your credit cards and your FICO score had dropped to 300.  Only you have an out the federal government doesn’t have – you can die.

Besides hearing about the sad cases of federal workers losing their jobs, we hear about billionaires paying no taxes. Elon Musk seems to be a particular target for this venom.  In the Wall Street Journal on March 16, the editorial board had a column titled, “The Reason Tesla Doesn’t Pay Income Taxes.”

Quoting from the column, “…The main reason Tesla pays little to no tax is because it lost money every year it was in business from 2003 until 2020. All companies are allowed to carry forward net operating losses to offset future tax liabilities. This encourages business formation since it can take years of sweat capital before companies turn a profit. The deduction also minimizes big year-to-year swings in income.

“Democrats have long understood this, which is why they exempted most net operating losses from the Inflation Reduction Act’s 15% corporate alternative minimum tax. That tax hits companies that make an average of $1 billion in annual financial statement income over three years, or at least it was supposed to. Such book income, which follows financial accounting standards, is distinct from normal taxable income.

“Ms. Warren [Sen. Elizabeth Warren, D. Mass.] and friends claimed this new corporate minimum tax was needed to ensure companies couldn’t use loopholes to dodge taxes. But then they created numerous loopholes in the minimum tax, notably for green energy and low-income housing tax credits. The effect was to increase the tax subsidy for such ‘investments.’

“Tesla recorded $625 million from tax credits for its electric vehicles and $756 million for its solar and energy storage business last year, mostly from manufacturing batteries in the U.S. These tax credits can also be carried forward to offset future tax liabilities. Tesla had $1 billion in renewable energy tax credits on its books at the end of last year.

“Democrats may loathe Mr. Musk these days, and they may shun Tesla’s cars. But their industrial policies helped to make him richer. Don’t blame Mr. Musk because Tesla doesn’t pay taxes. He and his company are merely playing by Democratic rules.”

It looks like once again we have the right president for the ugly task at hand – getting our fiscal house in order.

Jim Thompson, formerly of Marshall, is a graduate of Hillsboro High School and the University of Cincinnati. He resides in Duluth, Ga. and is a columnist for The Highland County Press. He can be reached at jthompson@taii.com.