As much as I hate the idea of new taxes, or of perpetuating the hugely draining welfare state, I don’t see a reasonable way out of either.
We can not reasonably slash social security or medicare without drastically changing the retirement & medical landscape. I think the best idea I’ve heard so far is to terminate SS except for people above a certain age (essentially the folks who are too old to have any hope in hell of building up the savings needed) and below a certain savings. If you are wealthy, young, or have a healthy 401K &/or pension plan, no dole for you. Not surprisingly, the AARP aggressively opposes this idea. As for Medicare/Medicaid, that would require either going full on single payer, or changing the laws for insurance companies such that they can not deny coverage to the elderly, or spike their rates (which of course means no one is allowed to not have health insurance, which leads to all sorts of arguments). Also, means testing might not be a bad idea. If you have a health plan as part of your pension plan, you got no need to be on Medicare.
As for taxes, I think we’ll see a lot of the special tax breaks for certain industries disappear. Personally, I’m all for a flat tax, either personal, or corporate, makes no difference to me (since individuals will be paying it either way), but I ain’t giving up breathing or sex waiting for that to happen. Maybe we’ll get a reduction on regulatory burden for businesses, although I know the favorite idea is regulations that only apply to big companies and are waived for smaller ones (not sure how that will fly with regard to equal protection). Still, those regulations are a big revenue source for governments, so I’m not sure how much that will happen, even if it would make businesses more profitable and offer larger tax reciepts (politicians at all levels have a hard time thinking that far ahead).
sigh…
There are times I really want to just build a WIG & a seastead and go grow algae for biodiesel in tropical waters somewhere.



