A Balanced Strategy for Addressing Debt

The debt to GDP and income inequality is the highest since before the Great Depression so efforts should be made to correct it.  We’ve had several decades of new spending and tax cuts that have led to a significant national debt so we should  consider the following;

  1. The top tax rate is at a historic low and should be raised back to 40% to correct the deficit. A new rate of 45% for billionaires should be added until the debt and income inequality are reduced.
  2. Tax cuts to the middle and lower income class increases demand where tax cuts to wealthy do not.
  3. Growth in the economy due to tax cuts will not lower the debt. It is projected to add 2 trillion dollars in the next decade.
  4. Improvements in Healthcare and other areas can lower the debt and improve service at the same time.
  5. The corporate tax rate was lowered to 21% but since economy is doing well and corporate profits are at an all time high, the need for such a low rate is questionable.
  6. Investment income for professional investors (hedge funds, private equity, etc) should be taxed more like income and pay FICA.
  7. Efforts should be made to repatriate offshore income.
  8. Efficiency is about reducing costs while improving services and retaining needed consumer protections. It should not be political or unlawful. It should reduce waste and fraud and identify improvement opportunities that can be corrected.
  9. Congress is responsible for spending and agency level funding. The executive branch cannot eliminate departments that were established by Congress.
  10. There are billions in taxpayer money spent on Big tech/AI, Starlink, NSA, etc to spy on and manipulate the taxpayer. That should be one of the first areas eliminated.
  11. DOE grants are needed to ensure the US has a good supply of educated workers. My guess is more than half of the DOGE employees received them.
  12. USAID is used to invest in underdeveloped countries that also benefits the US. While there is likely some waste and fraud that can be eliminated, it is not appropriate to close it entirely since those countries will look to China/Russia instead and goodwill is often reciprocated.
  13. Tariffs increase the price of goods for the American public and results in reduced purchasing power, so they should only be used only when necessary (i.e. unfair tariffs or strategic necessity). The 2025 tariffs will increase the cost of imported electronics, appliances, clothing, food, etc, and the cost of US manufactured goods with imported parts or materials.
  14. Entitlement programs like Social Security and Medicare are not “ponzi scheme’s” since they are paid by individuals throughout their working careers. Veterans and Federal employees also often take low paying Government jobs in exchange for pensions and other benefits, so it would not be appropriate to cut these programs.

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