Government budget

The problem is the projections on spending in the future.

If you took nothing but Medicare, Medicaid, Social Security, and then other government retirement, military retirement, civilian, federal civilian employees, and interest on the debt, they will be about 70% within a decade, 70% of the entire federal budget.

That means that infrastructure gets squeezed, education gets squeezed, environmental protection gets squeezed, unless you want to dramatically increase taxes to take care of that.

And most people don't want that.

Five things we definitely will not be doing because of the federal budget.

Good morning, everyone, and welcome back to Sugar Mama's Fireplay.

I am your host, financial planner, Kanna Campbell.

And as always, I'm here every Monday morning, rain, hail, or shine, to help make sure that you start your week off on an informed, empowered, and educated note when it comes to all of those very exciting financial goals and dreams of yours.

Now, a few weeks ago, I shared a podcast where I sort of peeked inside Tom's and mine financial strategy.

And in this episode, I shared with you what we will be doing, the changes that we are making to our own financial game plan because of the federal budget.

Now, this podcast, you guys loved it.

I received so much great feedback and you all said, yes, we want to hear what we are not going to be doing because of the federal budget.

There are three.

The first one is what has become law since the federal budget announcement back in May 2026, and what is still proposed as law, what action you should be considering now, if any.

The time is now, and if people don't...

And we're so lucky this podcast-

Yeah.

It, it, there's been a lot of changes.

I mean, back in May 2026, the, after the federal budget announcement, we found that, you know, they have a big, long list, because it's the biggest tax reform ever in the, the past decade, really.

They're now moved so fast that they've shortened the list quite a fair bit.

Thanks, Mr Speaker.

The figures that the Leader of the Opposition asked about are, of course, in the Budget.

And the changes that we made...

the changes that we made, the budget made no changes for people who already negatively gear property.

In the past, the $75,000 baby bonus is a relatively new suggestion, but the income splitting part of it, Mr Speaker, we have heard before.

In my view, in our view, there is good evidence to suggest that income splitting along the lines that he is proposing in his question would cost the budget substantially while denying the people it's designed to help the lion's share of the benefit.

If you look at the Parliamentary Budget Office costing of a similar proposal from Senator or former Senator Rennick, from early in 2025, that costing found the proposal would decrease the underlying cash balance by a bit over $12 billion over the forward estimates and almost $70 billion over the medium term.

And income splitting would primarily benefit higher wealth and income couples rather than targeting the families that need it most.

all right i'm gonna call a little bit of bullshit on that it's really who is nice to the chairman of ways and means and the chairman of finance committee and votes the way they want that's true but but think

about it that's how the entire state budget is written right like the agencies know that they need to be nice to the chairman finance and ways and means so that they can get funding and that's what they do

well speaking of agencies we've got a great guest here this is uh you know i love these podcasts we get to introduce our listeners to a little bit more about state government but before we do that vincent we got to take a break here from some of our fabulous sponsors bourbon in the back room we are in the end of august here still talking about elections we'll be right back Today, we're with Kirk Jenkins, President and CEO of Lexington Health.

Kirk, when I talk to the employees of Lexington Health, whether doctors, nurses, or administrative staff, they all talk about the positive culture that exists at Lexington Health.

He's the CEO of ATP Accounting and Taxation Professionals.

He's been in the accounting game for 32 years, and he broke down everything we need to know about the latest federal budget in relation to how you should be structuring your business and how you can be finding positive strategies to implement in negative times.

Enjoy the show.

Welcome to the podcast, Farid.

It's not great.

And when he was asked about the federal budget, he doesn't know anything about it.

Do you know how much the federal budget is? Abdul's response is no.

And he also decides to go after Usher Usha Vance, J.D. Vance's wife.

And we're going to get into all of it.

I'll say all the right things and say all the right things he does because he doesn't actually know anything that he's talking about.

Because I don't want you guys to blow the country up.

Do you know how much the federal budget is now? No, neither do I.

This is one of Romaldes' main arguments.

He argues that the speakership is administrative or supervisory only and that the General Appropriations Act passes through many independent actors, the Department of Budget and Management, the House and State Senate Committees, the Bicameral Conference Committee.

There's even a graph here where he shows the process of how the budget can be approved and says that this multistage process makes it legally impossible for him to be the mastermind.

He's really taken offense to that name.

We are all equal in rec.

As speaker, I was only first among equals.

And he also says, page 10, to emphasize it is not the speaker that authorizes the release of budgets, even if it's already found in the General Appropriations Act.

It is the Department of Budget and Management, which is under the executive.

For further information, see New Zealand Government, New Zealand Labour and Reuters.

Japan's Ministry of Finance is considering an assumed interest rate of 3.8% when preparing the next national budget, reflecting expectations that government borrowing costs will remain substantially higher than in recent years.

The change would increase projected debt servicing costs and influence how policymakers calculate the money available for other priorities.

Its significance extends beyond Japan.

For further information, see Élysée Palais, SoftBank Group, and Business France.

Italy's spending debate tests Europe's new fiscal framework.

Italy's Deputy Prime Minister Matteo Salvini has proposed an additional €20 billion in borrowing for the 2027 budget, arguing that more funding is needed to prevent infrastructure and public investment projects from stalling.

The proposal comes while Italy remains subject to the European Union's excessive deficit procedure and must prepare its budget within the bloc's revised fiscal rules.