The United States budget has been one of the most significant concerns of the American people for as long as I can remember and has been monitored by the people and the government since at least 1930. For the last four decades, I have watched as every president has built an annual budget that is supposed to keep the government running. Often, the opposing political party would fight the proposed budget by threatening a government shutdown. In 74 out of 86 of the years that has been monitored, the US has spent more than it has taken in from taxes and other sources. I have a plan to fix this that will do several significant things to help put the US Budget right side up in its spending.
In the upcoming fiscal year 2019, the federal budget is estimated to be $4.407 trillion on the Mandatory portion ($2.739 trillion), the Discretionary portion ($1.305 trillion) and the Interest on the National Debt ($363 billion). The U.S. government is estimating it will receive $3.422 trillion in revenue from what people and corporations in taxes. This difference will leave a federal budget deficit of $985 billion.
According to the thebalance.com, most of the taxes are paid by you, either through income or payroll taxes:
Income taxes contribute $1.622 trillion, or 49 percent of total receipts.
Social Security, Medicare, and other payroll taxes add $1.238 trillion, or 36 percent.
Corporate taxes supply $225 billion, or 7 percent.
Excise taxes and tariffs contribute $152 billion, or 4 percent.
Earnings from the Federal Reserve's holdings add $55 billion, or 2 percent. Those are interest payments on the U.S. Treasury debt the Fed acquired through quantitative easing.
Estate taxes and other miscellaneous revenue supply the remaining 2 percent.
So, if this is the income the Federal Government has to work with, how did any previous president manage to pay down the Federal Debt? It turns out that they had more money to work with for both the budget and the debt. About 50.1 percent of Americans are low-income families meaning they do not pay into the federal budget. But, low-income families really depend on that extra 7.6 percent of the money, so where else can we go to increase Federal Revenue? In my research, I discovered that approximately 70 percent of corporations pay no taxes according to forbes.com. Reviewing the information, I found that even though there is a 35 percent tax rate on income for corporations, most that pay taxes only pay about 16 percent.
With this information, I intend to remove most, if not all tax loopholes exploited by corporations. I want to see these very same corporations paying their fair share in taxes just like the nearly two-hundred million Americans who already do. I will also fight to remove the exceptions that US congressman and senators use to avoid paying taxes as well.