I think it would be wise to shoot for $5.0 trillion in Total
US Debt Reduction over the next ten years.
That would really step up our US National Security to a completely
different level.
Thus, we would need $2.7 trillion of additional US Debt
Reduction.
Given the present 74% overweighting to the Cost Side of the
Equation, to reach the goal of a fair balanced way from here on out, I think it
would be best to shoot for both $1.35 trillion of additional US Budgeted Cost
Cuts and a like amount of Additional Tax Revenues, nearly all of the latter wisely raised by fair Tax
Loophole Closings.
It is only fair that the $1.35 trillion of additional US Budgeted
Cost Cuts would include the Interest Savings from this huge total reduction in
the US Debt. Interest savings are clearly
just as much of a cost reduction as are US military cost cuts and Medicare Cost
Savings.
At first thought, finding $1.35 trillion of additional Tax
Revenues from fair Tax Loophole Closings may seem like quite a stretch, but
from thoroughly studying the issue, it is frankly quite easy to get there.
Included in these additional Tax Revenues are Corporate Tax
Loophole Closings and Individual Tax Loophole Closings, including some of the massive
amount of income earned by tax-free entities, such as Partnerships, SubS Corps,
LLCs, and REITs, which is passed through and thus taxed at the individual income tax
level.
When I get some time, I’ll be presenting in a series of separate
posts some of the many of these Corporate and Individual Tax Loophole Closing
Choices that the US Government has available to them.
As one overall thought in tackling Tax Loophole Closings, both the economic
and earnings damage to a Corporation or
other entity from closing one of their many tax loopholes is substantially
softened when the result is that the tax benefit from the income tax deduction
is not lost, but rather it is received much later. But yet in this case, there is still a
substantial reduction in US Debt over the next ten years, which the CBO will be
able to positively score as real US Debt reduction. And probably even more importantly, the US Debt reduction from this will continue growing on a compound basis by leaps and bounds after the first ten years.
