I know it's not very original, but here was something I thought up a couple weeks ago while talking with my father. On paper it looks like it'd work. On the other hand.....communism looks good on paper too....
Basically, this would be a large scale tax reform; re-writing the whole system in an effort to simplify it and stream line it. There would only be two taxes imposed on US citizens.
For the national government, a national income tax fixed at 15% of your total income for a year. This would go to national programs such as defense, social security, medicare, medicaid, education, etc.
With the national average of an American age 18 and older being about $28,000 (2006 average, most recent I could find), and there being 310 million Americans (according to census bureau), that'd be 1.26 trillion dollars going into the US government each year. I know these figures aren't accurate, some people make more and some less, this was only using the average. But you see where I'm going with this.
By cutting government spending, and I mean CUTTING
, not just pussyfooting around, most importantly the homeland security/defense budget, the debt could be under control and paid off in under 20 years. (calculated with my 12 digit desktop calculator
For state governments, a state sales tax set at whatever the state chooses. This would go towards paying state wide services.
With this reform would come regulations on government spending. Biggest and most important being the government may not spend more than it will take in in one year. If Uncle Sam takes in $1.26 trillion in a year, then it may only spend $1.26 that year. And so on and so on. In other words, a $0 deficit. I don't see why this isn't a law already......