Budgeting & Spending

Federal Government Spending

Creating a balanced budget and sunsetting unsustainable social programs.

$7.1T
FY2025 Total Spending
$1.78T
FY2025 Deficit
$39T
National Debt (Mar 2026)

The US Federal Government spent $7.1 trillion in FY2025 while collecting only $5.3 trillion in revenue — a deficit of $1.78 trillion added to a national debt that now exceeds $39 trillion. Interest payments alone consumed $962 billion, or 14% of all spending. This is unsustainable. For the full 10-year implementation roadmap with year-by-year pro-forma financials, see The 10-Year Plan on the homepage.

Where Federal Dollars Go (FY2025)
Total Spending: $7.1 Trillion
Data: USAFacts / Office of Management and Budget, FY2025

Budget Allocation: 10% National Sales Tax

Core Principle
Cap total federal outlays to taxes collected — no additional debt. Ever.

Under this plan, the single 10% National Sales Tax would generate approximately $1.8 trillion annually (based on ~$18T taxable consumer spending). That revenue would be allocated as follows:

Proposed Budget Allocation
10% National Sales Tax Revenue (~$1.8T)
AllocationRateEst. Annual $Purpose
Defense & Related4%~$720BAs directed by the Constitution
Social Program Payback3%~$540BRepay net obligations to SS, Medicare, Medicaid contributors
National Debt2%~$360BPay down existing national debt
All Other / Non-Defense1%~$180BAll remaining federal functions
Total10%~$1,800B
The $27 Trillion Entitlement Buyout
The federal government owes approximately $27 trillion to every American who contributed to Social Security and Medicare — the gross payroll taxes collected since 1937, net of benefits already received. This plan finances the full buyout over 4 years through operating surpluses, $4 trillion in federal asset liquidations, and temporary new borrowing at a refinanced 1% interest rate. Sources: SSA Table 4.A3, Congressional Research Service, Medicare Trustees 2025.

The buyout is paid at $6.75T/year over 4 years into individual IRAs and HSAs. Debt peaks at ~$61T in Year 4 before surpluses take over. Once social program obligations are fully repaid, all surplus revenue is redirected to national debt payoff. Once all debts are paid off, we reduce the National Sales Tax from 10% to 5%.


National Debt Payoff Timeline

Under this plan, 2% of revenue (~$360B/year) is dedicated to national debt repayment during Phase 1 (Years 1–5). After social program payback is complete, the freed-up 3% is redirected to debt repayment, increasing it to 5% (~$900B/year) in Phase 2. The interactive chart below projects payoff timelines at different annual repayment levels.

$200B/yr$500B/yr$800B/yr
~41 years to pay off
Debt-free by approximately 2067
Projected National Debt Payoff
Starting from $39T (March 2026) — assumes 1.0% refinanced interest rate
Projection model based on current Treasury data. Interest rate: 1.0% (refinanced)

Social Programs Reform — The $27T Buyout

The money contributed by individuals and employers into Social Security and Medicare has already been spent. Since 1937, Social Security collected ~$25T in payroll taxes plus ~$4T in interest = ~$29T total. Medicare HI collected ~$6T. After subtracting ~$8T already returned to retirees, the gross entitlement obligation is approximately $27 trillion. This plan buys out that entire obligation over 4 years at $6.75T/year, financed through operating surpluses, $4T in federal asset liquidations, and temporary borrowing at a refinanced 1% interest rate.

How to Sunset Social Security

  • Provide 18 months notice
  • End employment of all SSA workers; end employee/employer contributions
  • For those currently collecting: determine total contributions vs. payments made, fund an IRA with the Net Balance
  • For those not yet receiving: fund IRA starting with those closest to retirement
  • Create a Personal Social Security Ledger (Lifetime Contribution Audit) for every worker

How to Sunset Medicare

  • Provide 18 months notice
  • End all administration employment and contributions
  • Fund a Health Savings Account (HSA) with each individual's Net Balance

How to Sunset Medicaid & Federal Unemployment

Provide 18 month notice and end in entirety.

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Non-Financial Reforms