A new tax system

We can satisfy both progressives and conservatives by using a dual tax system. One half pays for however we define social programs/entitlements and the other half for everything else.

How much in taxes do Americans want to spend for:

  • Future retirement income
  • Healthcare
  • Childcare
  • Food assistance
  • Housing assistance
  • Income assistance
  • Disability assistance
  • Education
  • Elder care

Add it all up and develop a tax scheme to assure it is all paid for as the bills are incurred.- no deficit, ever. That may include payroll taxes, dedicated income taxes, a value added tax in addition to direct payments like premiums for some services. All these revenue systems would increase regularly to sustain the programs Americans want and want to pay for.

Total transparency and no fudging of costs or funding by politicians. Once implemented, a social program must always be fully funded with dedicated revenue.

4 comments

  1. I would like to see an experiment where every taxpayer can tell the federal government where to spend their tax money. For example, say last year you paid $20,000 in federal income taxes. Of all the tens of thousands of expenditures made last year you can tell the government where to spend that $20K.

    I drive so I’ll give $1,000 to the DOT for roads. I don’t own a boat, so no money for the Coast Guard. I have no kids or grandkids in public schools, no money for education. I want free healthcare so I’ll give $1000 for healthcare but then is that free? I am from a proud military family so I’ll give $500 to the military. I love national parks so I’ll give $2000 to the park service, etc…..

    I’ll bet that nobody will pay for jails, courts, or Congress. They will only allocate money to things that they think they can directly benefit from.

    What if each federal department had to run a tele-a-thon to raise their operating budget every year. I think you’ll find what Americans think is important then.

    The purpose of this exercise is to determine what is really important when the money is coming out of someone’s own pocket instead of Congress spending money to buy votes. Of course this country must spend money in areas that most people would not be willing to pay for to make this country run.

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  2. You made a fatal assumption in your hypothesis, sir. People want the benefits – but they want somebody else to pay for them. Americans don’t want to pay for anything. Me, me, me!!!

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