Shown below is the USA's financial position.
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| U.S. tax revenues and other revenues | $2,170,000,000,000 |
| Total federal expenditures | $3,820,000,000,000 |
| New Debt | $1,650,000,000,000 |
| National Debt | $15,000,000,000,000 |
| Recent budget cuts | $38,500,000,000 |
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Now, just remove 8 zeros and pretend it is a household budget:
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| Annual family income | $21,700 |
| Monies the family spent | $38,200 |
| New debt on the credit card | $16,500 |
| Outstanding balance on the credit card | $150,000 |
| Total budget cuts | $385 |
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The individual deduction for taxes paid to states and local governments
(including income, property and sales taxes, and the multitude of
government imposed fees) as well as other federal taxes that individuals pay
(Social Secuirty and Medicare taxes) should be deductible prior to
determining the federal income tax. Taxpayers should not pay a
federal income tax on other taxes paid to government.
The best reform would be to base federal taxes owed/paid by individuals based on their consumption of federal government services, rather than on the earnings of individuals or businesses. There should be a direct association between the cost of services consumed and payment for those services (taxes paid). The current tax systems misaligns services consumed and taxes paid, and it contributes to the misallocation (misuse) of taxpayer resources. There is an oversupply and too much demand and consumption for som government services when the consumer does not pay the total cost of the services used. Individuals and businesses that pay taxes far in excess of the cost of services they consume could find much better uses for those tax dollars. Individuals and businesses that receive or consume subsidized services would reduce consumption of those serivces if they were required to pay the full cost. George Nastas III, Haslett, Michigan |
Send comments to:
hjw2001@gmail.com
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