Today, October 1, is the first day of the 2012 fiscal year.

And if you’re wondering why America’s economy seems to have a hangover (this cartoon is a perfect illustration), it’s because politicians had a huge party with our money in FY2011.

We don’t have final numbers for the fiscal year that just ended, but let’s look at the CBO Monthly Budget Report, the CBO Economic and Budget Update, and the OMB Historical Tables, and see whether there’s anything worth celebrating.

o The federal government spent about $3.6 trillion in FY2011, more money than any government has ever spent in a 12-month period in the history of the world.

o The FY2011 budget is nearly double the burden of federal spending just 10 years earlier, when federal outlays consumed “only” $1.86 trillion.

o The federal budget in FY2011 consumed about 24 percent of national output, up sharply compared to a spending burden in FY2001 of “just” 18.2 percent of GDP.

o Defense spending is too high, and has increased by about $400 billion since 2001, but the vast majority of the additional spending is for domestic spending programs.

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From the Associated Press:

The withdrawal of Somalia’s al-Qaida-linked rebels from their bases in Mogadishu and severe food shortages in southern Somalia may be linked to the same problem familiar to politicians the world over: tax collections.

The abandonment of Mogadishu by al-Shabab puts Somalia’s U.N.-backed government in its strongest position in years in a country where anarchy has reigned for two decades.

Somali drought victims who lived in territory controlled by al-Shabab say there was little incentive to plant surplus crops because the militants demanded so much of the harvest as a form of tax payment. Families had nothing to fall back on after drought withered this year’s crops, so they were forced to flee to the government-controlled capital.

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As it turns out, the Cross-State Air Pollution rule’s devastating effects will extend beyond my hometown of Fairfield and the borders of Texas. On September 22nd, seven state’s attorneys general joined together to file an official petition for review of the Environmental Protection Agency (EPA)’s Cross-State Air Pollution rule. It’s reassuring to see that State Attorney Generals have noticed the consequences of this rule that will affect so many working families in Texas and elsewhere. The other filing states include Nebraska, Alabama, Florida, Oklahoma, South Carolina, and Virginia. Clearly this is a significant issue and the EPA must no longer snub the growing number of state and local government officials’ demands for a review of the rule.

The Dallas Morning News recently published an op-ed by David Campbell, President of Luminant. Mr. Campbell represents the 4,400 Luminant employees in Texas whose jobs have been threatened as a result of the Cross-State Air Pollution rule. My father is one of the employees whose position Mr. Campbell is fighting to keep. Luminant must reduce sulfur dioxide emissions by 64 percent in the next 3 months in order to comply with the regulation. In order to comply with the rule, the company will lose two power generating units, or 1,300 megawatts of power. Not long ago, Texans, along with many Americans, suffered through an unbearably hot summer. Luminant employees worked around the clock to avoid massive blackouts. Luminant customers cannot afford to lose 1,300 megawatts of power. As a result of the shut downs, Luminant will be forced to cut 500 jobs, in areas where employment remains scarce. Why would we put the jobs of so many neccessary employees on the chopping block when we need them the most? It seems like the EPA should be more thorough in seeking data related to the capacity losses and cost increases during record breaking summers and frigid winters like many parts of the Lonestar state have been facing in the past year.

As Campbell pointed out, this is not simply a case of “industry vs. EPA.” What concerns me, and directly affects my family, is the disproportionate negative effect this rule will have on Texans. Texas was a late addition to the EPA’s rule, yet Texas is still required to comply with the rule by Jan. 1, only six months from the date it was issued. My professors don’t ask students to write a 30-page thesis a week before the semester ends. It takes time to research the topic, make the outline, disseminate the research, convey the findings, and determine the conclusion. It’s not something than can be completed late in the game, as the EPA has asked of Texas energy companies. An agency as large as the EPA should understand the time and resources required to make these drastic changes.

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The way Mrs. Obama flings around orders, the title of “First Lady” should be changed to Commander-in-Chieftess.  Remember when “Big Thriver” Michelle Obama reminded the nation that, unlike herself, most Americans don’t want the “whole pie” because whether they know it or not, “most…feel blessed just being able to thrive a little bit?”

Appealing to that “thrive a little bit” constituency, recently the campaign came up with the innovative idea to hawk raffle tickets, at $5 a pop, to groupies who would love to spend an evening breaking bread with Barry.

Adorned in $42,000 Katie Davis diamond-encrusted wristlets, the first lady – taking time off from her chosen vocation of life coaching – has been recruited to give advice via email on how to raise a billion dollars in campaign funds for her husband’s bid for re-election.

With the contest deadline just ahead, Michelle voluntarily injected herself into the dinner-raffle excitement.  The first lady offered relaxation pointers and conversation tips to potential dinner-with-Barack winners and guiding people on what they should eat, with whom, and what to do and say while eating.

To ensure she has another four years of flying on AF1 and going on luxury vacations, Mrs. Obama took to her computer and did what she does best – shot off an email containing Michelle-to-prospective-raffle-winner directives such as: If you win the contest with Barack, don’t get nervous.

The first lady must feel that “Not everyone knows how to prepare for a dinner like this.” Luckily, preparation for the event does not include nerve-racking arrangements such as having Naeem Kahn design a one-of-a-kind evening gown or anything like that. However, preparation is still important, especially for small-piece-of-the-pie people who, if they win, will have to rush in record time from the unemployment office to the White House in order to collect on their prize.

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During his recent rallies to galvanize support for his “American Jobs Act,” President Obama stated that he wanted to ensure that millionaires paid the same percentage of taxes as secretaries.  While this is a great soundbite, this statement is inflammatory and demonstrably false.  “Millionaires” in this country, which according to President Obama’s definition now includes small business owners and job creators along with the likes of Warren Buffett and Bill Gates, pay a significantly higher portion of their salary to federal income tax, and pay a disproportionate amount of the entire tax burden.

When President Obama states that high income earners are paying less tax then the middle class, he cites the example of Warren Buffett, a multi-billionaire who only pays 17.4% of his taxable income.  However, Mr. Buffett is an anomaly in the upper tax bracket, because most of his income is earned through capital gains, which is taxed at a relatively lower 15% rate (IRS, February 2011).  According to figures compiled by the nonpartisan Congressional Budget Office (CBO), those making over $1 million per year pay an average tax rate of 23.3%, while those making between $30-50,000 dollars pay an average tax rate of 7.2%.

Most people in the upper tax brackets are not receiving stock options as compensation, and are therefore subject to the same progressive tax structure as “secretaries.”

Under the current tax system, millionaires don’t just pay a higher tax rate; they also are responsible for a much higher percentage of income taxes paid.  Again, the most recent CBO statistics available demonstrate that the top 1% of wage earners contribute nearly 40% of all income taxes paid in this country.  The bottom 50% of America’s wage earners contribute only 3% of all income taxes.  Additionally, under the current tax structure created under the Bush tax cuts, lower income citizens received a new lower tax bracket as well as the Earned Income Tax Credit, which has enabled further reductions to their tax burden.

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Today, in 1918, Arab forces under the command of Col. T.E. Lawrence capture Damascus. It was the high-water mark of the Arab Revolt.