For the Union to survive, we will need a sound economy, minimal debt, a strong currency or currencies, and those conditions can only be met with the prior curtailing of federal spending. A tall order, no doubt.
Why not make revenue the only source of revenue? That is, why not suspend all current means of federal enrichment--income tax, corporate tax, capital gains--while taxing all state, county and municipal revenue at a one hundred percent rate?
Of course, this would mean that Uncle Sam would o longer play sugar daddy to his harem. This is an eventuality anyway. No grants, no funding of welfare or daycare or education or Section 8 Housing. The federal government would finance essential functions such as maintaining national defense, securing the borders and protecting our national parks. Entitlements, if they would exist at all, would be scaled down. Federal pensioners might receive a lump sum buyout. Austerity is not optional.
State and local revenues currently total about $1.9 trillion. Taxed at one hundred per cent, this would be our federal budget at baseline. States would immediately find their path to thrift. Schools might cut back on non-teacher salaries. State universities might eliminate disciplines of dubious value. DEI coordinators might find greener pastures in the private sector where their predecessors have already paved a way at places like Anheuser-Busch.
Sooner rather than later, state and local taxes would decrease, and federal revenue would decrease in unison. Should that number creep too low to maintain essential functions, we jump start a low capital gains tax that was completive with the rest of the planet. Say eleven per cent, or half or the current non-competitive rate? If we really cannot function on this budget, we could gradually introduce new "revenue streams" to meet, but not exceed the shortfalls.
You get less of whatever is taxed. Why then, do we not tax the taxman?
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