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Notes on Big Government

Despite all appearances, “Big Government” has gotten bigger; not by hiring, but through a shell game; that shifts the administrative workload for hundreds of federal government policies and programs to non-profit organizations, private contractors, state and local governments.

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The Centers for Medicare and Medicaid Services (CMS) has less than 5,000 employees, but spends nearly a quarter of the Federal budget; a large portion is funneled to nonprofit organizations including churches. The EPA has fewer than 20,000 employees, but covers 90% of the costs for the thousands of state-government employees who administer EPA’s policies and programs. Every federal department, bureau, and agency uses for-profit contractors; they employ more than 7.5 million people.  State and local police forces have added about 3 million to their ranks through grants provided by federal crime bills and homeland security initiatives.

A conservative estimate of the number of people employed by the federal government’s out-sourced programs is 12 million; when added to the 2 million federal bureaucrats it’s a federally paid workforce of 14 million people.

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Thanks to the federal government’s outsourcing programs, the number of nonprofit organizations in the US has doubled. Tax exempt organizations now employ more than 11 million people.

Nearly 20% of employed workers and 10% of US corporations have been removed from the US tax base. If the trend continues the for-profit workers won’t be able to generate enough taxes to support the government; and the wealthy will once again have to pick up the tab.

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