Eliminate all the trillions in tax expenditures (corporate welfare, home mortgage deductions, farm subsidies, etc.) within Tax Expenditures
the Hidden Entitlements by Citizens for Tax Justice and listed elsewhere except those
recommended below. Inflation adjust all those below. Eliminate 15.3 percent payroll taxes. Pay for Social Security and health care with taxes on bads, not good actions.
Set all capitals gains tax rates equal to income
tax rates. Reinstate the capital gains tax on real estate. Primary reason: To prevent massive incentive of having other
income relabeled capital gains. See the Labyrinth of Capital Gains
Tax Policy by Leonard E. Burman.
Implement tax reforms similar to those proposed by Michael Graetz in 100 Million Unnecessary Returns, but make the reforms far more progressive.
Eliminate NASA and replace it with a much smaller
agency that has nothing to do with space shuttles, space stations, and
other joy riders in the sky.
Prohibit government funding of underfunded private pensions. Eliminate the Pension Benefit Guarantee Corporation.
Require all government managers to take a yearly oath to
base hiring and promoting decisions on merit. Eliminate the following: The Small Business Administration, Federal funding of state and local construction
projects, Americorps, FEMA (including all flood insurance), HUD, Head Start, Franking by legislators, The Maritime Administration, The Federal Railroad Administration, The Export-Import Bank, The Appalachian Regional Commission, The Farm Credit Administration, The Federal Transit Administration, Overseas Private Investment Corporation, SSI for children without total disability, The Mining Act of 1872, The Bureau of Indian Affairs, Job Corps, Demonstration projects, the Farmers Home Administration, federal drug treatment programs. (End of above elimination list.)
Gradually increase the low benefits age for Social
Security from 62 to 65 by 2020 and 66 by 2040.
Gradually increase the full benefits age for
social security to 67 by 2010, 69 by 2030 and 70 by 2040.
Defund most particle collider activities.
Open most federal lands and waters for oil and gas extraction. Eliminate all water, electrical, and land
subsidies. Charge 18 percent royalty fees on oil, gas, minerals and other assets taken
from public lands and waters. Rent asset containing federal lands at market
Economic Development Administration, Interstate Commerce Commission,
Helium Reserve, U.S. Information Service, and Federal Advisory Commissions. End
Community Development Block Grants.
Sell all federal aircraft except military aircraft.
Keep the Social Security cost of living allowance.
Gradually make social security income taxable for
individuals with more than $33,000 in all income, couples with more than
$47,000 in income and retirees with one dependent child with more than
$57,000. Add $10,000 to the $57,000 for each additional dependent child.
Eliminate the DEA, the class size reduction program, federal funding for dislocated workers, and all federal housing programs
except those recommended herein.
Create a 21 percent VAT on all advertising except medical advertising. Create a 198 percent VAT on medical advertising.
Raise the federal exise tax on alcoholic beverages to 27 cents per ounce of ethanol. Raise $1.8 billion per year taxing water polluters. Adjust these taxes and tobacco taxes for inflation.
Create a 31 percent tax deduction or
refundable credit for charitable national or international donations exclusively engaged
in the following:
Non-cosmetic health care and health education; basic nutrition; moral education that emphasizes consequences,
merit, duties, and human rights; independent and ethical press; basic sanitation; primary education; emergency services; democratic civics education; Charles Ballard's National Institute for
Responsible Fatherhood and similar parenting programs. Revoke the tax deductible status of any charitable organization that pays any employee more than $140,000 per year.
Eliminate all federal charitable deductions,
transfers, and subsidies except those recommended herein. (If citizens
donate money to the National Committee for Chicken Nugget Artwork,
they should not get a tax break.) Per Dean Baker: Give each American adult a $100 annual artistic freedom voucher given to creators of the adult's choice who put their works in the public domain.
Require 22 hours of weekly charitable service when
receiving federal unemployment insurance.
Implement the John Kerry proposals to tax U.S. corporate, untaxed overseas earnings.
rates for almost all sources of income equal to federal personal income tax rates.
"Permit businesses to deduct the present value of
all depreciation deductions for an asset in the year of purchase"
--Aaron, Gale, and Sly with idea from Auerbach and Jorgenson
Use federal highway spending for repairs only.
Increase IRS audit funding:
1.Until the cost of each additional audit outweighs the revenue
2.To increase the audit rate of those earning over twice median family income from
one percent to at least 12 percent.
Eliminate SSI for non-citizens and non-native born
citizens who have worked in the U.S. fewer than 20 years except
citizens with total, permanent disabilities.
Change the progressivity of estate tax rates to
four through 39.6 percent marginal tax rates.
Eliminate all federal job training aid and
Remove all intellectual property rights held by
anyone who renounces their citizenship primarily for tax purposes and
prohibit them from transferring the property rights to other individuals
Prohibit anyone who renounces his or her US
citizenship primarily for tax purposes from reentering the US.
Create an exit tax on those who renounce their
citizenship primarily for tax purposes.
Make anyone who renounces their citizenship
primarily for tax purposes liable for federal taxes for 15 years after
Locally administer federal housing, education and
childcare vouchers. Repeal the housing bailout bill.
Require Internet transactions to pay the same sales taxes as
Eliminate all regressive Bush era tax shifts.
Eliminate the Departments of Energy and
Agriculture. Hand their essential tasks to others agencies.
Implement multiyear pentagon budgeting.
Institute an eight percent federal tax on all gross
public and private gaming revenues.
Use inflation-indexed bonds for the national debt.
(It lowers interest rates.)
Eliminate all interest subsidies.
Sell the Power Marketing Administration.
Sell the national gold reserves. (Reasons: Raises
$50 billion, Holding gold is a terrible investment. Government possession serves no purpose. Government ownership creates incentives for greater gold mining
and environmental destruction.) Require all human landscaped government properties, with the exception of athletic fields and research plots, to replace non-native flora with native flora or edible flora. Permit the killing and sale of harmful non-native plant and wildlife species up until the point where those species no longer cause overall harm.
Create federalized unemployment insurance
and disability insurance plans somewhat similar to those described in True
Create an employer paid ten percent exise tax on fringe benefits.
Per the Cato Institute: Eliminate the Agricultural Adjustment Act (food
import quotas and restrictions), the Export-Import Bank Act of 1945
(corporate welfare for exports), the Meat Import Act of 1979, presidential food-import proclamations, the Agricultural Act of 1958, The Export-Import Bank, the Overseas
Private Investment Corporation, the U.S. Trade and Development
Agency, U.S. funding for the World Bank, The U.S. Information agency, The School
of the Americas, The Selective Service System, the Asia Foundation,
the Delaney Clause, the Resource Conservation and Recovery Act.
Require regulatory laws to meet cost-benefit
End the Rural Electrification Act, and the Community Reinvestment Act
Eliminate funding for the National Endowment for
the Arts and the National Endowment for the Humanities.
Eliminate: Highway Demonstration Projects, The Maritime Administration, Cargo Preference Programs, Wastewater Treatment Subsidies, The Economic Support Fund, The Corporation for National and Community
Service, ACTION, The Pennsylvania Avenue Development Corporation, National Flood Insurance, The Service Contract Act, Free mailings by congresspersons, congressional non-salary benefits and
perks, Economic Development Assistance, The International Trade Administration, The National Institute of Standards and
Technology, The Advanced Technology Program within the
Department of Commerce, substance abuse block grants, and the Federal Transit Administration.
Eliminate federal grant money to nonprofits.
Ban private tax collection and the sale of tax debts to private entities. Stop production of the penny.
Eliminate Department of Labor programs except
for research, reporting and regulatory functions.
Eliminate subsidies to the airline and airport