Category Archives: Federal Gov’t Reform

Ideas for major Federal Government Reform

Budgeting and Spending

Federal Govt Spending

The US Federal Government is one that has such a high opportunity for making the lives of the citizens better, but due to partisan behavior and lack of guiding principals, have lost their way…hindering the one thing the that government was setup to be: “a government Of the people, By the people, and For the people.”

Solution: Create a budget that decreases spend to to match 10% National Sales Tax

We need to cap the federal governments total outlays to match National Sales Taxes collected.  We dictate to the politicians where the 10% is to be allocated.  

To get there, here is how to allocate the taxes collected:

  • Debts 5% – National Debt, Social Security, Medicare, Medicaid
  • Defense of 4.0% – As directed by the Constitution *source
  • Other/Non-Defense of 1.0%

Putting these guardrails in place provide the long-term fiscal structure needed. Once all of the Debts are paid off, we should delay the reduction of the National Sales Tax to 5% and use the dollars collected as the funds for the following year.

Social Programs Spending

Social Programs Reform

Our government spends more money then it brings in, and even a bigger problem is that the money that has been contributed by individuals and their employer into Social Security, Medicare, and Medicaid has already been spent. These three programs need to be reformed.  The reform is simple: phase out each program by paying back the amount contributed by the employee and employer.

Social Security

  • Provide 18 months notice to all individuals that the current program format will be ended.
    • Major change involves:
      • Ending all employment of the roughly 60,000 individuals in the Social Security Administration
      • End Employee/Employer contributions
  • During the 18 month window, determine total Individual and Business Contributions versus payments made.***
    • Those currently receiving Social Security Retirement, Fund an IRA with their Net Balance (contributions less amounts already distributed to the individual).
    • Those not currently receiving Social Securing Retirement, fund their IRA starting with those closest to retirement
  • All other programs under the Social Security umbrella, such as Social Security Disability, to be ended at the 18 month mark.
  • Trustees Reports: https://www.ssa.gov/oact/tr/
  • Expenditures by year: https://www.ssa.gov/oact/STATS/table4a3.html
  • *** to find the total contributions by you and your employer, view your account at https://www.ssa.gov/

Medicare

  • Provide 18 months notice to all individuals that the current program will be capped.
  • Major change involves:
    • Ending all employment of administration individuals
    • Immediately end Employee/Employer contributions
  • During the 18 month window, determine Individual Contributions versus payments made.
    • Those currently receiving Medicare, Fund an Health Savings Account (HSA) with their Net Balance (contributions by them less amounts already distributed to the individual).
    • Those not currently receiving Medicare, fund their HSA starting with those closest to retirement
  • All other programs under the Medicare umbrella to be ended at the 18 month mark.
  • Trustees Reports: https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/ReportsTrustFunds/index.html?redirect=/reportstrustfunds/