After reviewing some of the data I used for my first post, I realized that there were some errors in my understanding of the data. Because my plan was based on my original understanding and not the correct interpretation, my numbers were in correct. Currently the the U.S. budget is $3.55 Trillion. The States total budget is $1.5 Trillion (30% of which comes from the federal government). So our total budget is $4.3 Trillion.
Total budget (spending) per capita its $13,870.
States budget (spending) only per capita is $2420.
Federal budget (spending) only per capita is $11,450.
Each man woman and child in the U.S. pays an average of $9,000 in taxes and payroll deduction to the government. Each business (35 Million total) in the U.S. pays $12,000 in total taxes, on average. This does not include state taxes.
I think I can cut total spending from $4.3T down to $3.0T, this will cut the total budget by 25% saving Americans $1.3 Trillion. But I can also refocus spending to still have the things Americans demand:
$1 Trillion to State Spending (with prisons spending mandate: only 10% of budget)
$500 Billion to Defense (Military, NSA, DHS, Border Control)
$500 Billion to Education & Justice (Sciences, Arts, Human & Civil Rights, Courts)
$500 Billion to Commerce and Environment (Infrastructure, Transpt, Agriculture, Energy, Utilities, EPA)
$250 Billion to Universal Health Care (FDA, Dept. Health)
$200 Billion to Pay down Debt (only needed for a few years, until paid off)
$50 Billion to Inspector General & Govt Operations (fraud, waste, & abuse plus salary of elected and appointed public officials)
$3.0 Trillion in total spending. So now we need to collect $3.0 Trillion in revenue:
The average income for a U.S. worker is $40,000 (including benefits and before taxes). Therefor a tax of 15% on the workers (18+ and able) of America would generate about $1.2 Trillion total (which is 8% of total U.S. GNI). We need to make up the difference with a tax on businesses of 12% of total U.S. GNI, thus $1.8 Trillion.
The average business in the U.S. profits $200,000 a year (yes, I know there are outliers, but outliers are captured by the effects of percentage). If we tax the average business 30% we can generate $1.8 Trillion in taxes. Why the heavier "burden" on corporations? There is 1 business for every 10 people. Because the average business consumes about 20 times the amount of natural resources and government resources as an individual does, their actual cost to society is far higher than the actual cost of 10 individuals. Therefor they should be expected to pay more.
15% personal income tax = $1.2 Trillion
30% corporate profit tax = $1.8 Trillion
Total Revenue $3.0 Trillion
Revenue = $3.0 Trillion
Spending = $3.0 Trillion
Deficit = $0.00
This would force the end to all forms of taxes from local, county, and states. It would also end all tariffs, excise taxes, sin taxes, estate taxes, utility taxes, etc. Of course, this would be adjusted each year to follow inflation/deflation.
To do this tax & spending plan, I propose a Constitutional Amendment called the Spending, Revenue, Fairness, and Person-hood Amendment. This amendment will end all earmarks and filibusters (limiting the potential of corruption and grid lock in congress). It would establish term limits for the federal house and senate (ending the potential for corruption). It would require a balanced budget. It would define person-hood as only an actual living human being (ending corporate person-hood status). Finally, it would reserve the right to tax to the federal gov't only (as originally intended by the founding fathers; they didn't expect states to start taxing their citizens).
The $1.3 Trillion in cuts from our current $4.3 Trillion budget will come from ending the $700 Billion social security plan (phased out over time so thus that are close to or already retired won't be hurt). States will now take over the role of providing social services to their retired, elderly and disabled.
Defense spending will be cut by $1.5 Trillion (currently $2 Trillion is spent in National Defense). Of that $1.5 in cuts to defense spending, $600 Billion will be wiped off the books and the remaining $900 Billion will be transferred to other departments and agencies.
Now its edited.
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Health Care was 16% of GDP in the U.S. in 2007.
ReplyDeleteThe GDP in 2007 was $13.84 Trillion.
The Health Care Industry cost $2.176T in 2007 for Americans.
You have budgeted $250 Billion to a "Universal Healthcare System".
How do you figure your costs?
Hey Dave,
ReplyDeleteA huge portion of our Health Care Industry GDP percentage is not direct patient care, its indirect like hospital construction, manufacturing, selling, and maintaining hospital/health care equipment, records and files, pharmaceutical marketing (usually 2-3 times their R&D costs), etc. This stuff wont be nationalized. I don't think anyone is calling for that (well, maybe some ultra-left wingers are, but no one in the government is). I don't even think we should ban or end private health care. I just think we could use $250 billion to give everyone basic health care that can cover things like ER visits for accidents and sudden illnesses, regular and preventative check ups/physicals, vaccines, birth control, prenatal care and treatments for common injuries and ailments, basic generic prescription, glasses, etc (but not limited to these things either). If anyone wanted extra coverage, they could buy supplimental insurance (similar to France, Japan, Canada, and Australia), or places of work could buy it for their staff to attract and keep better employee candidates.
Even in the most socialized countries, a lot of very successful insurance companies and medical equipment businesses make huge profits. GE actually profits more from medical equipment sales to EU nations than it does from the US, yet the US spends a far higher percentage of GDP toward health care than the EU does. GE does better business in the EU than it does in the states (according to my share holders prospectus).
Of the 27 collective EU member nations, they average about 7% of their total GDP ($15 Trillion) on their health care systems. This amounts to about $1 Trillion. They have about 500 million people (200 million more than the US), yet have a a total cost that is less than half of the US.
They also have a better life expectancy, lower child mortality rates, lower obesity rates, lower cancer rates, lower death rates, lower diabetic rates, the list goes on and on. So if our total health care industry costs fell inline with the EU, we should be spending 60% of what they do (300 Million/500 Million), so at best we should spend about $600 Billion for our entire health care industry. Being I am not advocating a complete nationalization, we should only need about 40% of that for basic health insurance: $250 Billion.
Wouldn't it be better just to pay the premiums of those that can't get insurance, rather then regulate the entire industry? HIPPA (ala Clinton) made one insurer in each state non-profit and responsible for covering those that had pre-existing conditions. (I believe that Blue Cross/Blue Shield was that carrier in Michigan) At least that is what I learned when I was working as a health insurance agent back in the late 90's. Yeah, it's expensive, but people CAN get insurance if you have cancer.
ReplyDeleteHealth care is such a personal issue. I go to the doctor every year or 2 for a checkup. I also quit smoking, exercise daily, and try to eat right. If i get a cold, the flu, or some other minor illness, I stay home from work. If it lasts more then a couple of days, I MAY go to an urgent care center(NOT EMERGENCY) if my Doctor doesn't have an opening.
If everyone was like me, we would have no problems paying for that kinds of stuff. But they aren't.