Congress cannot seem to act like an adult when it comes to dealing with much these days. So I'd like to put forth a budget plan and offer my vote to anyone willing to put it forward. There are spending cuts. There are dramatic changes, There are tax increases for all. That's how you honestly address these situations.

Currently our revenue is 2.162 trillion dollars with a budget of 3.456 trillion. That's a 1.294 shortfall to be closed. No small task, but it really isn't that difficult. Our current tax rate as a country is 14.9%. When you add in state taxes we end up around 26%. When you look at most developed countries, we have one of the lower rates. (Link below) France is at 46%. Germany is at 40%. We are really being selfish if we want to keep tax rates where they are while our long standing country faces economic failure which will crash the world economy. There is much concern about being disproportionately unfair with our taxation. So what I propose is that we take taxes back to 1999 levels. All taxes. In 1999 our revenues at the federal level was 20.4% of GDP. Overall, all of our taxes would go up and we all bear the burden. The economy was good and taxation was not a hinderence. This single act would raise that revenue from 2.162 trillion to 2.98 trillion. We would only have a 476 billion dollar gap to close.

To close this gap we have a few options. The first one, another revenue ploy for this one year. American Corps are holding 2 trillion in cash off shores waiting for an amnesty period. Let's meet them part way. Let's offer them a 15% rate on this one time return, but they must bring back all cash reserves. That would be 300 billion more in revenue, and... and, it would bring in 1.7 trillion more into our economy that would be invested in the economy immediately to avoid excess taxes. Talk about stimulus spending.

So now the 176 billion that still needs to be dealt with. The first obvious hit is the wars. This year we have 117 billion requested for Iraq and Afghanistan. Good luck to you countries. I'm afraid that we aren't helping you or ourselves a decade on. See ya.

That leaves only 59 billion to deal with. I'd say the military because Gates has wanted to cut that much for years, but let's deal with this in a way that makes longer term sense. Our health care reform was a joke. Let's not kid ourselves, we did little to nothing to deal with the costs. Hospitals will still see profit from buying more MRI machines then over prescribing them because they are there which drives up costs. The right wants private health care. The left wants coverage. We can do both. The Bismarck Health care system is done in three countries, Japan, Germany, and France. They all have superior systems to ours according to the WHO. They have longer lifespans and this is true even with a high smoking rate in France. As a percentage of GDP, in the US we spend 16.7% of all of our money on Health Care. By comparison, Japan spends 8% and France spends 11%. So we are talking about atleast 5% of GDP savings (read that as 700 billion more in our pockets) by going to the Bismarck System and covering everyone. There are structural cost shifts here, but the details can be worked out many ways as all three countries currently doing it do it different ways. So this will lower Medicare and Medicaid deficit spending, more than covering the 59 billion difference and.. and inject another 5-6% of GDP back into the economy.

I could easily save another 200 billion a year to start paying down the debt. The problem isn't the budget. It's the courage of the Congress that is lacking. It's the politics getting in the way of what's right. We all have to pay more, cut a few things, and frankly we could be debt free 20 years or less. We can do the right thing or go down in history as the generation that let it all crash while defending our turf right up until there was no turf left to defend. I'm saying another 1.7 trillion not in the economy right now and spreading out 700 billion across virtually all industries. This will create jobs, increase revenue and enable us to get rid of the debt in our lifetime. Problem?

Tax revenue link

Healthcare Comparison link

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Sounds pretty good... most people doing this sort of thing start by legalising and taxing drugs and taxing religions. Quite a bit of potential tax revenue there I believe.

I definitely agree. The results of Portugal or the Netherlands fully supports at least a decriminalization, if not legalization for taxation which would see a 14 billion dollar swing to the good. I would have reservations about taxing religions because they could then get involved in politics outwardly. I wrote the post with less controversial positions to avoid conservative objections. But long term, I don't understand why we have 11 aircraft carriers and 1000 bases outside of the US, Long term, free college education for those that can perform would be great too. People are terrified of taxes, but when you consider families saving from birth for college, retirement, health care costs of nearly 20k per family, are we really keeping more than the next county? (Health care premiums paid by my wife's employer is 1100, she pays an additional 200 and that gets us a deductible of 4k. That's $19,600 spent before we see benefits.) If we want to continue to be the innovators of the world, we had better get on this. 55% of the Ph. D candidates are foreign born. That's no good for us long term.   

Gaytor for President 2012!!!!!!!!   Awesome.


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