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You’re right that VAT is regressive and the middle class would bear the brunt of it, but I encourage you to consider other ways to address the issue. “Cutting s
by patentatt 7y ago
You’re right that VAT is regressive and the middle class would bear the brunt of it, but I encourage you to consider other ways to address the issue. “Cutting spending“ is almost always code for “cutting spending on stuff the middle class and poor need,” which only pits workers against workers. Rather than die in a circular firing squad, how else could the shortfall be explained? Look into stagnant wages, wealth inequality, and ask where all the productivity gains of the computing revolution have gone.
- godshatter 7y agoNot the parent poster, but we should probably start with our biggest outlays, and work down from there. I'm assuming that's military spending and entitlement programs. If I'm wrong, we can start with whatever the two largest outlays actually are.
- jdhn 7y agoI believe that Medicaid, Medicare, and Social Security make up close to 50% of the government's budget. Put military spending in there, and I'd be surprised if it didn't go over 75%.
- rayiner 7y agoNote that at all levels of government, spending is close to $7 trillion annually, with only $4 trillion from the federal government. Medicare and SS are together about $1.5 trillion. Defense is about $700 billion. Roads, education, schools, etc., make up most of the $3 trillion state spending.