How to Reduce Taxes by 40%

December 19, 2010 – 18:48

There’s a lot of heated political rhetoric about taxes these days, particularly U.S. federal taxes.

Some people want to abolish federal taxes. Just about everybody would like to pay less federal taxes. I think it’s safe to say that everyone would like to see federal tax dollars used more efficiently.

I don’t think it’s realistic to champion an idyllic version of a U.S. society that can exist in the modern world with no tax funding, so I can’t support the first group.

I agree wholeheartedly with the last group, but have enough time under my belt working with governments and large corporations to know that there is not enough waste, fraud and abuse to make the up the gap between what things cost and how much will soon be available to pay for it. So, yes, more efficiency is good. But, trying to sell a version of the near future where massive budget shortfalls will be covered by arresting a few beltway bandits and embezzling secretaries is itself fraudulent.

However, the middle notion, that of reducing the federal tax burden–and how to do it by 40%– is achievable.

It won’t happen overnight and it won’t be without hard work and compromise, two things our current government and especially our elected representatives are apparently incapable of achieving.

Nonetheless, it can happen. Here’s how.

In 2009, U.S. federal income taxes brought in $915 billion dollars, according to the U.S. federal budget.

In 2009, the U.S. sent at least $1 billion per day overseas to buy foreign oil. Some say it’s more like $2 billion per day, but I’ll use the more conservative numbers and go with $1 billion per day. That adds up to an easy-to-remember number: $365 billion dollars.

You can probably do the math in your head, but the precise number is that we are spending 39.89%, or a nice round 40% of our federal income taxes, on buying foreign oil.

Want to see your federal income taxes go down by 40%?

Support energy independence and ensure you only elect people who promise to, and actually do, take concrete action towards that goal.

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