Part 2

I asked AI: Do you think our tax dollars are being spent wisely based on our current situation and this proposed bill? What would be the best plan for our economy and the future of this country?

Whether U.S. tax dollars are being spent wisely depends on your priorities— short-term growth vs. long-term stability, economic fairness vs. deficit discipline, and investment vs. consumption.

Based on current fiscal trends and this proposed bill, here’s a breakdown of the key issues and what a better plan might look like.

1. Are Tax Dollars Being Spent Wisely Right Now?

The Bad (Waste & Mismanagement)

- Deficits are structural - we’re borrowing to fund tax cuts + spending, not just emergencies.

- Healthcare inefficiency: The U.S. spends ~18% of GDP on healthcare (vs. ~10% in peer nations) for worse outcomes.

- Defense bloat: The Pentagon fails audits but gets budget hikes (e.g., $886B in 2024).

- Tax breaks for the wealthy: The TCJA’s benefits skewed toward top earners without clear economic payoff.

The Good (Necessary Spending)

- Social Security/Medicare keeps millions out of poverty.

- Infrastructure/CHIPS Act boosts long-term competitiveness.

- Debt interest is unavoidable (but rising too fast).

Verdict: Some spending is vital, but much is inefficient or regressive.

2. Is This Proposed Bill a Wise Plan?**

Pros

✅ Some offsets are smart:

   - Medicaid/SNAP reforms (if done carefully) could reduce waste.

   - Immigration fees make sense for cost recovery.

   - EV/energy credit cuts might be justified if subsidies are excessive.

✅ Defense/border spending aligns with GOP priorities (though costs could be better controlled).

Cons

❌ Tax cuts dominate savings $3.9T in cuts vs. $2T offsets = net deficit increase.

❌ Cuts target safety nets (Medicaid, SNAP) but protect corporate breaks.

❌ No plan for entitlements (Social Security/Medicare still going bankrupt).

❌ Debt interest will explode (adding $500B+ in costs).

Verdict: Fiscally irresponsible long-term, prioritizes politics over sustainability.

3. What Would a Better Plan Look Like?

A smart economic strategy would balance growth, fairness, and fiscal responsibility.

A. Fix the Tax System

- End inefficient breaks: Cap mortgage deductions, phase out pass-through loopholes.

- Raise revenues smartly:

   - Carbon tax ($100+/ton, rebated to low earners).

   - Financial transaction tax (0.1% on trades).

   - Higher top rates on $10M+ incomes (not small biz).

- Corporate minimum tax (15% global floor, as in Biden’s plan).

B. Reform Entitlements

- Social Security: Lift the payroll tax cap ($168K→$250K).

- Medicare: Negotiate all drug prices, raise premiums for high earners.

- Medicaid: Keep work requirements but expand preventive care.

C. Cut Wasteful Spending

- Defense: Audit the Pentagon, end cost-plus contracts.

- Subsidies: Phase out fossil fuel/agricultural boondoggles.

- Corporate welfare: Kill excessive state/local tax breaks for Amazon-style deals.

D. Invest in Growth

- Infrastructure: Fix permitting to speed up clean energy/transit projects.

- Education: Universal pre-K + vocational training (better ROI than college debt relief).

- R&D: Double NSF/NIH funding to counter China.

E. Debt Stabilization Rule

- Cap deficits at 3% of GDP (triggering automatic cuts/hikes if breached).

4. Political Feasibility?

- Left won’t accept entitlement cuts without tax hikes.

- Right won’t accept tax hikes without spending cuts.

- Solution: A grand bargain (e.g., Simpson-Bowles 2.0) with:

   - 3:1 spending cuts to revenue ratio.

   - Protections for the poor.

   - Bipartisan cover (e.g., a fiscal commission).

Final Answer

Current spending? Not wise enough, too much waste, too little investment.

This bill? Worse, it deepens deficits while cutting safety nets.

Best plan? Balance smart cuts, fair taxes, and growth investments.

Without fiscal reform, we’re headed for a 2030s debt crisis—followed by brutal austerity.