10 Surprising Ways to Boost Federal Funds – You Won’t Believe #7!

In the year 2025, the impending fiscal challenges facing the incoming president and Congress demand attention. With the debt ceiling needing a raise and expiring portions of the Tax Cuts and Jobs Act (TCJA) to handle, new sources of revenue must be explored. But not all revenue-raisers are created equal. Some methods could have severe economic repercussions, while others may be less harmful. Here are suggestions for generating over $10 trillion in new revenue over the next decade in a way that minimizes economic impact:

1. Promote economic growth: Maximizing productivity growth through smart tax policies like a lower corporate tax rate can boost revenues significantly.
2. Sell government assets: Selling off federal assets like public lands and state-owned enterprises could generate substantial funds to address the debt.
3. Increase user fees and lease royalties: Raising fees for federal services and leasing more public lands could bring in billions without causing economic strain.
4. Tax certain “untaxed” business income: Subjecting tax-exempt nonprofits engaging in business activities to corporate income tax could raise substantial revenue.
5. Raise federal employee benefit contributions: Asking federal employees to contribute more to their healthcare and retirement costs could bring in additional funds.
6. Raise the federal gas tax: Increasing the federal gas tax and indexing it to inflation or implementing a vehicle miles traveled tax could generate revenue for the highway trust fund.
7. Eliminate industry subsidies and targeted tax preferences: Removing unjustified subsidies in the tax code could help raise revenue and reduce lobbying influence.
8. Broaden the income tax base: Eliminating tax preferences and itemized deductions for high-income taxpayers could generate substantial revenue.
9. Increase Medicare premium contributions: Increasing premiums for Medicare benefits could add market discipline without a broad-based income tax hike.
10. Tax employer-provided health care benefits: Taxing currently untaxed employee compensation from employer-provided health insurance could shift more compensation to cash.

In conclusion, when considering new revenue streams, policymakers must prioritize options that minimize economic harm to ensure sustainable growth. Making informed choices can help address fiscal challenges effectively without impeding economic progress. Stay updated on impactful tax policies to stay informed and engaged in shaping the fiscal landscape.