A high-level look at what’s possible

The federal deficit is about $1.5–2 trillion per year. We can’t ignore it forever — but the usual arguments (raise taxes, cut benefits) miss the bigger picture.

Here’s a smarter path that could shrink the deficit by up to half over time — without hurting families:

– Reduce healthcare costs through prevention, innovation, and better outcomes

→ Could save $300–500B/year long term

– Procure smarter by trimming waste, simplifying contracts, and avoiding over-specs

→ Could save $60–115B/year

– Encourage people to work longer, increasing income tax revenue and delaying benefit costs

→ Could yield $90–100B/year

– Modestly raise taxes on million-dollar incomes

→ Could raise $100–150B/year

– Address extreme concentrations of wealth without distorting markets

→ Through non-disruptive mechanisms like a financial transaction tax, deferred asset taxes, or a minimum tax on ultra-wealth

→ Could raise $100–200B/year

– Shrink the the gross tax gap — the difference between taxes owed and taxes actually paid. The IRS estimates that gap at around $700B/year.

→ Could raise $250–500B/year

Short term (5 years): up to $900B/year in savings

Long term (10+ years): up to $1.25T/year in savings

That’s a strategy that reduces the deficit without raising taxes on the middle class or cutting Social Security.

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But this isn’t just a proposal to manage the system better — it’s a call to build a better system.

We don’t just need to cut waste — we need to grow the economy.

And not with hope or slogans — with real, structural change.

A stronger economy produces more tax revenue without raising tax rates — as long as we grow without fueling inflation.

– If growth stays low (~1.7%/year), deficits stay large.

– If growth picks up (~2.5%/year), revenue rises by $250–400B/year.

– If growth is strong (~3.5%/year), revenue rises by $500–700B/year — enough to nearly close the gap.

How?

By investing in productivity, expanding the workforce, supporting healthy aging, and keeping inflation in check.

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STATUS QUO VS. TRANSFORMATIONAL THINKING

– A quick look at what we’re doing vs. what we could build –

Healthcare

Status quo: Trim fraud, negotiate drug prices

Transform: Redesign care delivery, apply AI, shift incentives, improve health itself

Procurement

Status quo: Cut waste, prevent fraud

Transform: Use demand aggregation, modular systems, private-sector-inspired practices

Workforce & Retirement

Status quo: Nudge people to delay Social Security

Transform: Create purpose-driven older work pathways, up-skill the aging workforce

Taxes

Status quo: Raise marginal rates slightly

Transform: Modernize capital taxation, rethink wealth taxation without distortion

Growth

Status quo: Assume a modest bump from reforms

Transform: Engineer growth through productivity, smart immigration, and tech acceleration

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This is not about slowing the system’s failure.

It’s about replacing it with one designed for the future.

That’s the vision.

It’s not magic — but it is possible.

Decline is a choice.