| ▲ | kipchak 13 hours ago | |
>We need to change our politics to redirect taxation and spending to achieve a better society. Unfortunately, I'm not sure there's much on the pie chart to redirect percentage wise. About 60% goes to non-discretionary programs like Social Security and Medicaid, and 13% is interest expense. While "non-discretionary" programs can potentially be cut, doing so is politically toxic and arguably counter to the goal of a better society. Of the remaining discretionary portion half is programs like veterans benefits, transportation, education, income security and health (in order of size), and half military. FY2025 spending in total was 3% over FY2024, with interest expense, social security and medicare having made up most of the increase ($249 billion)[1], and likely will for the foreseeable future[2] in part due to how many baby boomers are entering retirement years. Assuming you cut military spending in half you'd free up only about 6% of federal spending. Moving the needle more than this requires either cutting programs and benefits, improving efficiency of existing spend (like for healthcare) or raising more revenue via taxes or inflation. All of this is potentially possible, but the path of least resistance is probably inflation. [1] https://bipartisanpolicy.org/report/deficit-tracker/ [2] https://www.crfb.org/blogs/interest-social-security-and-heal... | ||
| ▲ | dkural 12 hours ago | parent [-] | |
I agree with all of what you're saying. I think the biggest lever is completely overhauling healthcare. The USA is very inefficient, and for subpar outcomes. In practice, the federal government already pays for the neediest of patients - the elderly, the at-risk children, the poor, and veterans. Whereas insurance rakes in profits from the healthiest working age people. Given aging, and the impossibility of growing faster than the GDP forever, we'll have to deal with this sooner or later. Drug spending, often the boogeyman, is less than 7% of the overall healthcare budget. There is massive waste in our military spending due to the pork-barrel nature of many contracts. That'd be second big bucket I'd reform. I think you're also right that inflation will ultimately take care of the budget deficit. The trick is to avoid hyperinflation and punitive interest rates that usually come along for the ride. I would also encourage migration of highly skilled workers to help pay for an aging population of boomers. Let's increase our taxpayer base! I am for higher rates of taxation on capital gains over $1.5M or so, that'll also help avoid a stock market bubble to some extent. One can close various loopholes while at it. I am mostly arguing for policy changes to redistribute more equitably. I would make the "charity" status of college commensurate with the amount of financial aid given to students and the absolute cost of tuition for example., for example. I am against student loan forgiveness for various reasons - it's out of topic for this thread but happy to expand if interested. | ||