My Budget Plan
While I like Ryan’s plan for solving Medicare, the main driver of future deficits, I believe my proposal is simpler and
Institute a 15% VAT. (Generates $750 billion in tax revenue) to pay for the
Eliminatation of the income tax on people earning under $100K (Reduces revenue by
about $230 B)
Reduce income tax rate to 15% on incomes above 100K by eliminating exemptions and
special tax rules. Officially the top 1% pay an average of 23% however this
based upon adjusted gross income so they probably really only pay about 15%
Reduce the payroll tax by 7.5%. Put 7.5 % into medical savings/retirement
accounts. (Reduces tax revenue by $400 Billion)
Reduce corporate tax rate to 15% eliminating any industry specific tax rules. Now watch corporations stay in the U.S. and more choose to locate here.
(Reduces short term tax revenue by $120 billion)
$1 trillion since ObamaCare would no longer be needed if people have 7.5% of their salary to pay for their own healthcare.
Dramatic savings from Medicaid. Again since people will have 7.5% of their own money, they will not be taking money from state until their their Medical Savings Account is exhausted.
Families could save $300 per month compared to traditional insurance by families being able to take advantage of lower premiums of high deductable plans. (This might also solve much of the preexisting problem since insurers would know that even if they took a bad
risk client, much of the initial costs would be paid from medical savings
Long term growth in health care costs should be reduced as patients start
shopping for better deals and doctors no longer have medical claims to fill
out, and hospitals do less cost shifting from people who don’t pay.
Burden of taxation should shift from away from companies producing in U.S.
because of VAT is paid regardless of country of origin.
People who hide income would still pay VAT and the lower tax rate would
encourage people to not hide as much income through tax shelters (or simply
I also like the simplicity of this idea. 15% VAT, 15% corporate, 15%
personal (above 100k) and SSN/medicare tax reduced to 7.5%. This might also
increase incentive for people to start on business. Now self-employed have
to pay entire 15.3%