Can we make US debt-free?
The United States faces enormous problems of debt now. While many Americans are aware of this fact they do not recognize the real problem behind the huge national debt that the nation faces. Economists and politicians do not talk about the meaning of this great problem, as it will create more problems for the nation’s financial system. And to make matters worse you can only put a nail in the coffin for the U.S. financial system.
The U.S. national debt rose in 2001 as the CBO predicts that the annual surpluses will average at $ 850 billion between the year 2009-2012 in the estimates. The average expected U.S. debt reached around 1.215 trillion. Today, the problem is seen as saving fat, arrogant and greedy Wall Street types. While this may be true, the current solution does not put a personal face. We have a crisis of confidence because of arrogance and greed. The first solution from the Congress does not seem to protect individuals. Unsung heroes who can be a part of the solution is based on thousands of lenders in the United States and the millions of homeowners who simply want to stay and pay.
Here’s what we learned from the debt crisis in 1980. The peasants were too much in debt, regulators stepped in and solved the problem. Controller / Treasury provided a $4 billion credit limit … and the fix was left with the local institutions. I believe the principles learned provide a “Home Run” solution for now.
People forget that we turned into the #1 in the world and hopefully, Obama will do his part by reminding them again. Real estate and credit markets are the keys to get us back on the road, once again financially. Make America a strong country in economic life. Here are some steps that the U.S. government should consider:
A graduated tax rate of 0% to 20% for individuals and businesses alike, while getting rid of all tax subsidies, loopholes and credits earned income. It will be a pay-as-you-go system with a benefit of cutting the IRS by 60% or more, and using all IRS auditors and lawyers to track terrorist money and white-collar crimes. Those earning less than 120% of federal poverty level will pay no taxes except FICA, from that level we tax 1% to 20% on all incomes from any source, including but not limited to interest, dividends, gifts, inheritance, and all foreign or other means.
Get rid of all subsidies and that alone can save $ 1 trillion U.S. dollars a year, we will save billions of dollars on more paper tax returns and lowering taxes we collect more money from pay-as-you-go basis than it’s collected now. Savings and collections add up to more than $ 2 billion dollars a year, especially if you implement tax changes.
Some of the ideas could allow all Americans to pay more and get less in return. The idea of a National Sales Tax has people of all income brackets fuming. The economy is driven by consumer spending, so how would a “consumption tax” will be beneficial? The national debt could be reduced slightly during long periods of time but would slow consumer spending and the number of people needing government assistance for basic necessities can be increased accordingly. This idea seems to be a double edged sword. Similarly, the suppression or limitation of deductions for charitable giving can go around and cause less taxes and a greater need for government funding. Reduction of benefits for veterans or social security benefits can be seen as a viable option, but how will our respected elders pay for essential living items, and perhaps the added National Sales Tax when they earn so little each month?
Use existing office controller of the currency and the FDIC National Credit Union Administration audit institutions of the respective control of Fannie and Freddie loans. These controllers are essentially doing a good job. This is to limit the excess of bureaucracy.
Miles to go before we Sleep as many U.S. citizens have a lot of work to do before it can be called free of debt.