Coronavirus Costs
May 12, 2020 at 7:05 p.m.
By -
The coronavirus bailout will cost the federal government well over $1 trillion. I have a hard time comprehending that amount of money, particularly when you think that goes on top of our national debt, which is north of $20 trillion.
Now don’t get me wrong; I’m glad the bailout passed and we may need more help before all is said and done. There is no appetite to cut popular high cost items such as Social Security, Medicare, SNAP (Supplemental Nutritional Assistance Program – food stamps), etc. – so let’s look at some quick ideas to get the ball rolling and pay for some of this:
Change the tax code. Flat tax – no deductions. Maybe 15% of gross income. Yes, gross income. No mortgage deductions, no business travel expense deductions, no farm credits and just to make sure everyone is angry – no charitable deductions (surely that’s not the reason you were giving). There are many more tax code changes, but time and space are limited now. (How much tax did Google pay? Answer = $0)
Eliminate all ceilings on earnings for FICA tax. Sounds like small potatoes, but this should fully fund Social Security. Then allow excess funding to flow into the general fund as extra income. Check that one off the list.
Look at all sort of “little things.” Part of the coronavirus bailout is targeted for the cruise boat industry. You know, those fun ships that don’t fly the U.S. flag. They fly the flag of Libya, Panama or mostly, Bahamas. Why do they do that? They don’t want to pay U.S. taxes, but they’ll take the bailout. Bahamas imposes no tax on income for these ships. Profits are untaxed. But who do they call when they need help? U.S Coast Guard and U.S. hospitals. By statute, the Coast Guard is prohibited from charging any money for helping a ship. Who thought that was a good idea?
And so it goes.
This is 15 minutes of ideas and babble. You and I know there is so much more waste and inequity, and yet, this is still the greatest country on the planet. We need some big changes after we get through this pandemic.
Timothy Bower
Warsaw, via email
The coronavirus bailout will cost the federal government well over $1 trillion. I have a hard time comprehending that amount of money, particularly when you think that goes on top of our national debt, which is north of $20 trillion.
Now don’t get me wrong; I’m glad the bailout passed and we may need more help before all is said and done. There is no appetite to cut popular high cost items such as Social Security, Medicare, SNAP (Supplemental Nutritional Assistance Program – food stamps), etc. – so let’s look at some quick ideas to get the ball rolling and pay for some of this:
Change the tax code. Flat tax – no deductions. Maybe 15% of gross income. Yes, gross income. No mortgage deductions, no business travel expense deductions, no farm credits and just to make sure everyone is angry – no charitable deductions (surely that’s not the reason you were giving). There are many more tax code changes, but time and space are limited now. (How much tax did Google pay? Answer = $0)
Eliminate all ceilings on earnings for FICA tax. Sounds like small potatoes, but this should fully fund Social Security. Then allow excess funding to flow into the general fund as extra income. Check that one off the list.
Look at all sort of “little things.” Part of the coronavirus bailout is targeted for the cruise boat industry. You know, those fun ships that don’t fly the U.S. flag. They fly the flag of Libya, Panama or mostly, Bahamas. Why do they do that? They don’t want to pay U.S. taxes, but they’ll take the bailout. Bahamas imposes no tax on income for these ships. Profits are untaxed. But who do they call when they need help? U.S Coast Guard and U.S. hospitals. By statute, the Coast Guard is prohibited from charging any money for helping a ship. Who thought that was a good idea?
And so it goes.
This is 15 minutes of ideas and babble. You and I know there is so much more waste and inequity, and yet, this is still the greatest country on the planet. We need some big changes after we get through this pandemic.
Timothy Bower
Warsaw, via email
Have a news tip? Email [email protected] or Call/Text 360-922-3092