Cutting spending at all government levels is certainly going to reduce spending.
But even if we continue to cut spending until the cows come home, we are not going to reduce the deficit. This requires real money. We can only reduce the rate of its growth, perhaps, if we reduce spending.
Debt reduction requires additional revenue, a lot of it and as soon as possible Can the spend cutters determine where the additional revenue is coming from to pay down the debt.
Where do governments attain their revenue? From TAXES. So someone is going to have to pay additional taxes. The very poor can hardly afford to remain alive, where would they get money to pay additional taxes. It doesn't seem fair to increase taxes for the middle class, they are pretty much burdened already and we'd not get enough there.
Who has prospered most during the last decade? The upper classes.
The extremely rich ( less than 2% of the population have earned more during the past decade than all of the lower 50% of our population. Where can the revenue to pay our debt possibly come from now or in the future except from those upper income groups? We need to face up to it.
So this is the way to do it. Apply an excise tax on total income, applied on actual income without deductions or any exceptions, on incomes of:
1 Million to 10 million --- 25% tax. $250,000 per million.
11 Million to 20 Million --- 30% $300,000 “ “
21 Million to 30 Million --- 40% $400,000 “ “
31 Million to 50 Million --- 50% $500,000 “ “
Over 50 Million 55% $550, 000 “ “
1 Billion to 10 Billion 60% $600,000 “ “
Over 10 Billion 65% $650,000 “ “
We would also apply a 20% import tax on all imports, with no exceptions, including oil and a 35% tax on all imports coming from American firms from abroad. We would remove Federal taxes on all oil products except these import taxes collected at point of entry.
If anyone can figure out how to increase the nation's revenues and for working toward a better import policy, which I'm sure someone can do, let's hear from you. Unless we start somewhere, we are not going to reduce the debt. We need money now and it should be real money.
There you have it. What about it?