The problem is that the US government takes in approximately 18% of GDP and spends 20.5% (these are forty year averages). That is unsustainable and has grown the deficit under both parties leadership.
|Consumption Tax Now|
The answer is simply a flat tax on individuals of say 5% and corporations of say 5% and then a consumption tax.
The consumption tax would not only tax the 47% a little but would also tax the millions that are living and working under the radar, in the black market, etc. because everyone consumes, milk, gas, houses, etc.
The 5% on corporations may seem small but in 2011 while the headline tax or base number is 35% (highest in the world), the average US corporation paid just 1.3% in taxes after deductions (lowest in the world).
We might need to adjust the numbers slightly to make sure the government takes in enough to run the country, say to 6% but businesses would have the certainty they are looking for and without the massive loopholes, businesses could concentrate on building business, not tax dodging.
This idea would have massive bi-partisan support and would pass congress easily. The President who signs this bill into law would be popular long after its passage.