Reducing the Federal Debt- A few suggestions-2

To start with although it will hurt the most but for the sake of the greater good, we should eliminate Mortgage interest rate deductions. This is immediately cut according to one calculation more than 100 billions in immediate revenue. Another one is we should reduce the personal exemptions to only 1000 dollars and that should remain constant yearly. We should also increase the gasoline tax from the current 18.4 cents to 40 cents which would immediately cut our oil consumption and increase the revenue to build more and better roads and other means of transportation. Medicare should be restricted to only certain levels of income and higher income (which can be debated) should be eliminated.

Social security taxes should be on every level of income. Corporate tax should be reduced from the current 35 percent to a more acceptable 25 percent and it should be across the board. Health insurance benefits should be taxed. Cases won in the Federal lawsuits should be tax at ordinary income and special tax rate on capital gains should be eliminated. There is also no need to provide tax exempt status to some inheritances and estates and every thing should be taxed at ordinary tax rates. Defense expenditure can be reduced by eliminating our so called security interests since in this current financial environment we cannot defend our interests everywhere and the most important security interests should be defended with of course financial help from the countries involved. Although most of my suggestions can be broadened or even curtailed but I am sure that we can reduce our debt if we can take bold and unpopular steps.