July 7, 2009 2:01am CST
Here is something to think about Obamas proposed federal budget for 2010 is 3.6 Trillion dollars. a number that none of us can even begin to comprehend. The projected revenue for 2010 is 2.4 trillion dollars leaving us with a 1.2 trillion dollar deficit. her are the numbers revenue 1.1 trillion dollars income tax 940 billion dollars payroll tax (Social Security) 222 billion dollars corporate tax 77 billon dollars excise tax 23 billion dollars customs tax 22 billion dollars deposits of earnings 20 billion dollars estate and gift tax 16 billion dollars other Expenses Mandatory spending 2.2 trillion dollars 695 billion dollars social security 453 billion dollars medicare 290 billion dollars medicaid 11 billion dollars potential disaster costs 571 billion dollars other mandatory programs 164 billion dollars interest on national debt discretionary spending 1.4 trillion dollars 660 billion dollars department of defense 79 billion dollars department of health and human services 73 billion dollars department of transportation 53 billion dollars department of veterans affairs 52 billion dollars department of state 48 billion dollars department of housing 47 billion dollars department of homeland security 26 billion dollars department of energy 26 billion dollars department of agriculture 24 billion dollars department of justice 19 billion dollars space administration 14 billion dollars department of commerce 13 billion dollars department of labor 13 billion dollars department of the treasury 12 billion dollars department of interior 11 billion dollars EPA 10 billion dollars social security administration 7 billion dollars national science foundation 5 billion dollars corps of engineers 5 billion dollars national infrastructure bank 1 billion dollars corporation for national and community service 21 billion dollars other agencies 105 billion dollars other I would just like toss a few of my ideas out here for a discussion as a country we could cut social security, medicare and medicaid, before i get crucified for this let me explain. by cutting this programs we could shave 1.45 trillion dollars out of the federal budget ,dont forget by getting rid of these programs we could also get rid of the social security administration which cost 10 billion dollars per year. By eliminating social security, medicare, medicaid we would be able to get rid of 940 billion dollars worth of taxes of which 470 billion dollars is paid by the american people ,remember that companies pay half of the payroll taxes. one note on social security, a person who makes 32,000 dollars put his money in to a stock mutual fund instead of contributing to social security the person would be a millionaire by the time they retired. Even if they invested there money conservatively they would still get a return that would be three times better than what the would get from social security. chile, mexico,britain, and australia are just a few of countries that have started to move away from their government funded retirement planes. in chile over 90 percent of the work force has opted out of the government plans. this now, theoretically, leaves USA with a 700 billion dollar deficit then one thing many of you may agree with is to completely abolish the income tax system, now i know what you are saying that this cant be done and most politicians would tell you the same. one note before i continue if you have ever taken an economics class in your life you may know, income taxes are not only used as a form of revenue but the are also a means of government control! now continuing by cutting income taxes that would know leave us with a 1.8 trillion dollar deficit ,Deeper deficit than when i started, on a lighter point we could cut the the IRS saving 12 billion dollar, leaving the deficit at a now smaller 1.788 trillion dollars. now the we have to increase the federal governments revenue. i propose a fairly reasonable 15 percent federal sales tax on everything bought and sold. assuming that 75 percent of the GDP is from consumption we would take 15 percent from 10.65 trillion dollars ,our GDP is 14.2 trillion so 75 percent leaves us with 10.65. this would give the government revenue 1.598 trillion dollars. there may be questions of how this is any better than than an income tax system, well i will tell you. this would all but eliminate tax fraud, which means more money is collected. everyone is taxed so those 15 million illegal immigrants in the USA will finally pay there fair share of tax to this country. Another advantage is that we collect money from tourists visiting our great nation. And finally your income is only taxed once , let me explain. Today when you get your paycheck you pay your taxes and then probably save some money, well when you take it out this money then you have to pay more taxes on it, at least on the money you made on it. with a sales tax you only pay tax when you spend money. this still leaves us with a deficit of 200 billion dollars, at least now it is once again slightly more manageable then with what we started with under obamas current plan. To close this deficit we will turn to corporations. i know politicians in this last election said we had some of the highest corporate taxes in the world, well those are a bunch of lies. current tax states that corporations should pay around 35 percent well the taxes they pay is much lower than that, more like 15-20 percent after deductions. so if we close the loop holes in the tax laws and raise corporation taxes slightly 40 percent corporations are know going to have to pay around another 350 billion dollars in taxes ,this would bring there total contribution to 530 billion dollars. know to settle the questions on the fact that this may cause corporations to flea and go over seas, well it may but remember they no longer are paying payroll taxes ,470 billion dollars, that means they are paying 120 billion dollar less in taxes WOW. we now have a 150 Billion dollars surplus. to fix the healthcare system you can take 75 billion dollars to establish a government HMO that can provided cheap affordable health care to the uninsured, the healthcare would not be that best but would at least provide the basics. So how does that 75 billion dollars surplus sound, it would also grow with the economy so in theory the federal sales tax could be decreased over time. So how does this sound would you still rather have obamas plan our this. discuss
1 person likes this
10 Jul 09
1. INTRODUCTION hahaha!...don't worry, no one will crucify you in this case. Because your given ideas represent your high nationalism that must be respected as good US citizen. The only thing is to look it feasibility whether high percentage in practical. I read every word you wrote because I am also an American, an expatriate living in other country. I joined ChangeUS.org and make entry to the running discussions on that site. Now back to your point of discussion. 2. METHOD OF STATEMENT My thinking is not cutting the all listed under "Expenses" items. But, to seriously look into revenue list and work more on how to get extra resources of revenue. Because all the listed expenses items are inevitable for the need, respectively. To cover up the 1.2 trillion dollar deficit, our government can create "US National Bond" or in abbreviation USNB. Where people can participate for long term investment with good Return On Investment(ROI). [b]3. FINANCIAL INSTRUMENT AND ITS ACTIVITIES [/b] Through USNB, the government easy reach quick money and re-invest it in many profitable "Government Link Companies"(GLC). Which are also proven gaining higher audited nett profits in the capital market. I observe still many of them running blissful in the current market trend. Because GLC is a group of companies purely owned by US citizens in term of stake holding. 4. PATRIOTIC SPENDING Secondly, promote "Patriotic Spending" to the people by buying and using American Product, a priority. This kind of financial activity which stimulate a dollar ownership keep on changing "non-sleep" which able to generate rapid economy recovery, develop, and reach esteem stage in less time due to high US population. 5. MY CONCLUSION All the above, is to generate more revenues through business/corporate type of taxes. The logic is when USNB for sure growing add up with patriotic spending, means more US business companies will be making sumptuous profits. Absolutely, the government easily collect the business/corporate taxes. So, focus on making more money and not slash down the current listed expenditures. "I Love Obama"