Issue: National Debt

Instruction: Under each of the topics below, please make your contribution of a proposal to deal with the topic/problem, or provide a statement of unintended consequences. Feel free to comment on any contribution submitted by others.
  • Proposal for a National Debt Reduction Tax

    An important first principle, which we individually and collectively need to reinforce, is that if one has a debt, payments should be scheduled and made with the goal of reducing and (when appropriate) retiring that debt. The national debt of the United States is one of the most important of such debts. A national debt that is large, at times growing larger, and costing more in interest payments every day (and therefore contributing to our annual deficits), is a problem for all of us.

    Every individual visiting, living, working, relaxing, spending money and/or generating income and profit through any activity here, as well as every local, national and international organization that is involved in any of these activities, does so by taking advantage directly or indirectly of our 1) air, airways, and airwaves; 2) water, waterways and water infrastructure; 3) ground and roadways;  4) public services, and/or 5) other infrastructure resources. It is therefore proposed that we should "all" participate in the effort to manage and reduce our national debt to a "reasonable level."  It is proposed that this be done by the implementation of a "National Debt Reduction Tax (NDRT)."


    The definition of "all", as presented here includes any person, organization or program (profit-making or non-profit), trust, account, or lender, that makes money or receives income (in any way) by activity involving the United States and its citizens and businesses, and/or otherwise uses our airways, ground, water, electrical system, transportation, internet infrastructure, financial system, or any property within our country. Everyone (nationally and internationally) stands to benefit from a programmed reduction of the U.S. national debt, and the national and international financial stability associated with the effort. 

    The definition of “ a reasonable level” is proposed to be (based on a historical perspective) 30% of the U.S. gross national product (GDP). The National Debt Reduction Tax on income is to be progressive in nature (ranges of income to be determined), with flat tax amounts at all income levels below the poverty line. Every person and organization or entity receiving any kind of income will make at least some level of payment based on gross income from all sources, without any allowances, exemptions or deductions of any kind. This includes persons of any age, and also every person receiving some type of assistance from taxpayers. These income recipients to be taxed (or pay an appropriate fee) include those housed not only in the United States, but in any other location in the world, where it can be demonstrated that there activity utilizes our resources. In addition, when an activity is undertaken which does not generate taxable income, but utilizes our resources, a use fee would be established and applied. 


    1. The absolute amount of the 30% of the GNP we are attempting to reach will be recalculated at the end of every year, based on a rolling average of GNPs of the previous three (3) years.
    2. The current national debt level will be recalculated every year, based on the average of the national debt level at the end of the three (3) previous years.
    3. The final payment to this level is to be accomplished over a thirty (30)-year period. This is like taking a mortgage out on a house.
    4. The first year payment due (the total amount to be collected from all sources via the debt tax on all income streams (and any fees on visitors or items other than obvious income) is 1/30 of the amount between the calculated 3-year average national debt, and the calculated 30% of the GDP.
    5. The second year payment due will be 1/29 of the difference calculated; the third year payment due will be 1/28 of the difference calculated, etc.
    6. The reduction in the rate of increase in the debt, the increase in the GDP, the reduction in interest paid, the increase in income taxes collected because of the growth of the private sector with new financial stability, and the effort to balance the federal budget (or as a minimum decrease the annual deficit) over some reasonable period of time will hopefully allow the ultimate goal to be achieved in the 30 year period.
    7. An earlier approach to the 30-year goal will allow for a re-adjustment of the tax-rate of the income stream (and also any required fees).
    8. In the event that it becomes obvious at 25 years into the debt reduction program that the goal cannot be achieved, based on all of the variables over time of income and expenditures “demanded” by the U.S. Citizenship, then the “mortgage” can be refinanced (restarted).

     It should be recognized that with the large number of income sources available for generating income from the tax, the “hit” on any one payer will be as reasonable as can be achieved to accomplish the established goal.

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