The federal government spent $7.1 trillion in FY2025 while collecting $5.3 trillion — a $1.78 trillion deficit added to a national debt exceeding $39 trillion. Interest payments alone consumed $962 billion, more than the entire defense budget. The Social Security trust fund will be depleted by 2034. This trajectory is unsustainable, and incremental reforms will not reverse it. What follows is a three-step plan to fundamentally restructure federal finances.
— Milton Friedman, Economist
Step One: Overhaul the Tax Code
Replace all federal taxes with a single 10% National Sales Tax on consumer purchases (groceries exempt). One tax. One rate. No loopholes.
In practice: no more income tax, no payroll tax, no corporate tax, no excise tax, no estate tax. The IRS is eliminated. Every American keeps their full paycheck. Tax is collected at the point of sale — simple, transparent, and fraud-resistant.
Step Two: Cut Spending to Match Revenue
Cap total government outlays to match the revenue generated by the 10% National Sales Tax — approximately $1.8 trillion annually.
In practice: the federal budget drops from $7.1 trillion to $1.8 trillion. This requires eliminating entire departments, privatizing federal assets, and sunsetting Social Security, Medicare, and Medicaid. Defense is funded at ~$720B. Everything else runs on ~$180B.
Step Three: Pay Off All Debts
Pay back the $27 trillion owed to every American who contributed to Social Security and Medicare. Finance through surpluses, $4 trillion in asset sales, and temporary borrowing at 1% interest — then pay down all debt.
In practice: every worker receives a Personal Social Security Ledger showing their total contributions minus benefits received. Net balances are deposited into individual IRAs and HSAs. The buyout completes in 4 years. After that, permanent surpluses pay down the national debt until the country is debt-free by 2069.
Explore the Details
Federal Tax Reform
How the 10% NST replaces all six current tax categories — with interactive charts showing the before and after.
Read moreFederal Spending
Budget allocation, the $27T entitlement buyout, and interactive debt payoff projections.
Read morePrivatization
$4 trillion in federal asset sales to finance the buyout and permanently reduce expenses.
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