With the U.S. government currently spending $1 trillion annually just to service the national debt, it’s as if every taxpayer earning $54,436 contributes solely to paying interest $6,097, with no benefit to essential services or programs. This proposal aims to change that dynamic by tying taxpayer relief directly to debt reduction:
-Tax Credits Linked to Debt Reduction: As the national debt decreases, taxpayers receive a proportionate tax credit. For every percentage point the debt is lowered, the tax credit increases, offering direct financial incentives for reduced government borrowing.
-Increased Accountability for Congress: By aligning public benefit with debt reduction, the proposal encourages greater public pressure on Congress to prioritize fiscal responsibility. As taxpayers stand to gain from a lower debt burden, lawmakers will face greater calls for prudent spending.
This proposal creates a powerful link between fiscal responsibility and tangible financial benefits for Americans, driving both economic health and personal relief.
The tax credit would go away over time or represent a smaller ratio than 1:1 for interest and tax credit. It wouldn’t make sense to replace debt with a long-term tax credit.