How To Fix the Taxing and Spending issue in the United States of America

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America has $20 trillion in debt, and here is how I think we ought to fix that!

If you take money out of my paycheck and give it to someone else without my consent,

Then I don’t call that charity, I don’t even call it welfare. I call it theft. Hi again, people of the human species. I am an American human being who is going to extrapolate here about how to fix this fiscal disaster we currently live in.

What exactly are the details of the disaster?

Well, there are two factors to always assess in one assessment. The tax revenue category, or as it is for regular people like me the tax burden, is one. Category two is the federal spending category, which can also be called federal budgets, government spending and government budgets.

Taxing

We have more different kinds of taxes than I even know how to condemn differently. I have to make a numbered list to figure out for myself how many different taxes we as Americans pay.

  1. Income
  2. Payroll
  3. Property
  4. Corporate
  5. Capital Gains
  6. Dividend
  7. Trade
  8. Estate
  9. Gift
  10. Sales

Each of these with a library’s worth of loopholes, nuances, dos, don’ts and more. The total burden or revenue mounts, currently, to $4.4 trillion according to the World Fact Book.

Spending

$6.3 trillion in total spending, according to the same source. As for spending breakdown, we must turn to a private sector fact book for that. Here are the percentages applied to the World Fact Book’s federal spending number.

  • $1.6 trillion that Congress doesn’t even know what this spending goes to.
  • $1.4 trillion on monopolizing healthcare.
  • $1.1 trillion on Pensions
  • $964 billion on monopolizing education
  • $788 billion on “Providing for the Common Defense”, to quote the constitution
    • $550 billion on American military
    • $79 billion on foreign aid
    • $158 billion on Veteran’s handouts
  • $435 billion on “The General Welfare”, as the constitution calls it.

Basically, 81% of the federal spending is on Unconstitutional functions.

How do we fix this disaster?

Well, we do not do it by either one of revolution or by going about it slowly-but-surely. Instead, we need to amend the constitution to restore our founding taxing and spending system. Which basically was to not tax anything but trade and to not spend on anything but defense and welfare.

What are the fine details of this solution though?

Firstly, we need to look at our trade. $1.5 trillion is how much worth of matter Americans export from foreign lands every year. $2.25 trillion is how much worth of matter we as Americans import from foreign lands every year.

Not to mention, economists love the idea of getting rid of any tax that is on production! Economists only want consumption taxed, and not production. However, there is a fiscal and moral need to exempt the poor from taxes of any kind, and economists know this to, as the article I linked to indicates. Individually, I’d say the rate needs to be something low for the working and middle classes and something high for the very rich. Here’s an example I can offer:

  • 0% Import tax for the poor and the working class
  • 50% Import tax for the middle class and the rich

That’d be amounting to $1.875 trillion, which leads to what we need to do with spending to make it a surplus maker and not a deficit maker.

Get rid of foreign aid, reduce spending on Vet’s handouts and on Welfare handouts by something slight like perhaps 20%. This would lead to an annual spending pattern of $1.025 trillion and therefore an annual surplus of $850 billion, 100% of which ought to go to paying off our national debt, even though it will take something like 25 years with an annual surplus of this size. If we adopt this plan right when we need to (aka now), I will be hitting my 60’s when America’s national debt is all paid off. How’s that for realism?

It’s excellent for realism, and the only thing better is you readers and how much I appreciate you all reading my jargon here,

~KSP Perkins

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