Happy Tax Day!
You might feel that you’re paying a lot, but the nytimes says that you’re not paying enough: “Federal Budget Deficit Projected to Soar to Over $1 Trillion in 2020”.
It seems that we can’t simply vote ourselves to be richer and more efficient so that we can afford the government of our dreams.
Let’s assume that the onion of the U.S. economy is already being squeezed for as much tax revenue as can be obtained (of course rates can be cranked up higher, but then you have companies fleeing offshore physically (the pharmas) or virtually (Apple), so the net revenue may not be higher; higher tax rates for individuals may similar discourage work and/or encourage tax-avoidance investments such as captive insurance).
Let’s have a fun Tax Day exercise.
Readers: What do you think should be cut? And, for each proposed cut, how much would it save per year? (we need to get to $1 trillion total!)
I’ll go first… the government should stop purchasing opioids for non-hospitalized patients. So Medicare and Medicaid would not pay for OxyContin. Patients would have to purchase opioids with their own funds and/or obtain them from charities (who wants to start Oxy for Everyone, a 501c3?). See Who funded America’s opiate epidemic? You did. for what we’re doing now. I’ll estimate that this cuts opioid abuse in half, which boosts the economy by about $250 billion (source), of which the federal government gets $50 billion.