In a perfect world, total federal spending is constitutionally limited to 18% of GDP, and a balanced federal budget is mandated. The federal government is held accountable for the environment it fosters.
Allocation of Federal Expenditures
Defense and National Security – 5% GDP or 28% Total Federal Outlays
Entitlements – 5% GDP or 28% Total Federal Outlays
Remaining Departments – 5% GDP or 28% Total Federal Outlays
Debt Reduction – 3% GDP or 16% Total Federal Outlays**
Graduated Tax Structure
Personal – Business/Corporation – Capital Gains
Personal – Dependent Child and Mortgage Interest Deductions Only
Business/Corporation – Profit/Loss (By normal accounting practices.)
Capital Gains – Profit/Loss (By normal accounting practices.)
Payroll Tax, Inheritance Tax and Alternative Minimum Tax are eliminated.
Employer paid health and pension benefits are taxed as regular earnings.
Earnings $100,000,000 and above – Are taxed at 24% - Minimum Liability $20,642,250
Earnings $10,000,000 – $99,999,999 – Are taxed at 21% - Maximum Liability $20,642,250
Earnings $1,000,000 - $9,999,999 – Are taxed at 18% - Maximum Liability $1,742,250
Earnings $500,000 - $999,999 – Are taxed at 15% - Maximum Liability $122,250
Earnings $250,000 - $499,999 – Are taxed at 12% - Maximum Liability $47,250
Earnings $100,000 - $249,999 – Are taxed at 9% - Maximum Liability $17,250
Earnings $50,000 - $99,999 – Are taxed at 6% - Maximum Liability $3,750
Earnings $25,000 - $49,999 – Are taxed at 3% - Maximum Liability $750
Earnings less than $25,000 – Exempt - No Tax Liability
Everyone "has skin in the game," and everyone "pays their fair share." Earnings less than $25,000 are exempted in a conscious effort to reduce dependency on government programs.
** -- During a limited transition period established by statute, “Debt Reduction” funds shall be used in order to offset anticipated shortfalls in current/promised entitlements until they are replaced, and/or restructured and a viable path to solvency is established. From that point going forward, “Debt Reduction” funds shall be used to retire the public debt. Upon reaching surplus, a contingency fund is established, entitlements are enhanced, tax rates are restructured, and/or total federal outlays are reduced and restructured.
Note: The primary responsibility of the federal government is to “provide for the common defense.” Therefore, Defense and National Security deserve the lion's share of total federal outlays. Federal Spending for Defense and National Security shall be at least 5% GDP or 28% Total Federal Outlays, except during time of war or catastrophic global event.