top of page
Skeleton Government
Structure
A skeleton government consists of executive departments that are scaled-down versions of themselves (or "bare bones") when considering the minimal services that they provide. This allows for an extremely low federal tax rate that will result in improving the overall economy of the nation.
A skeleton government will also adopt a project-oriented, or P-series, government bond system. In other words, rather than an open-ended fund that encompasses all government programs, every project will have its own separate P-numbered bond that will enable better encapsulation among federal programs (e.g., no more dipping into a general fund that hides cost overruns, or siphoning funds meant for other projects). A project-oriented system will also allow the general public to have greater discretion on deciding which projects should be funded compared to others regarding their ethics or other considerations.
For example, voters may approve of a new project for renewable energy to replace fossil fuel dependency (e.g., wind or solar power). A new P-numbered bond will be assigned to the project that will be funded entirely through private investment. The role of government will only be to initiate the project, facilitate public funding, and assist with general management. Redemption of the P-series bond will be provided after the project is completed (e.g., it pays for itself after becoming fully operational), so only a minimal amount of federal tax dollars will be given to the project if any.
Advantages
The primary advantage of a skeleton government is that it will allow for an extremely low federal tax rate. On average, a flat 5% federal tax rate would be the norm though an even lower rate may be possible.
In America, reducing the tax rate for individuals from 25-33% to just 5% would greatly improve personal matters by a significant amount. Also, reducing corporate taxes from 21% to 5% would allow businesses to hire additional workers and offer greater incentives to their employees.
By nature, a skeleton government will only tax wages and all other forms of taxation will be eliminated. The gift tax, estate tax, capital gains tax, etc., will no longer exist. Gambling and lottery winnings become tax-free as well as any tips received from customers. All retirement plans also become tax-free though pretax contributions will no longer be offered.
Since only wages will be taxed (revenue for businesses), the need to file taxes at the end of the year will no longer be necessary. Employers will simply withhold the appropriate amount of tax from an employee's paycheck, and it's done. There are no deductions, credits, or other adjustments made since the federal government should treat everyone in an equal and fair manner regarding their individual life decisions (e.g., single or married, rent or own home, children or none, etc.).
Further Considerations
A skeleton government with a low tax rate may require the active military force to be replaced with a volunteer-based civilian force (much like Minutemen of colonial times). In this case, the defense budget would primarily be used for maintaining the special/elite forces on a regular basis, while a smaller portion is used for volunteer training camps. In any given year, however, taxes may be temporarily raised for additional weapon procurement if needed.
State/province and local city governments will likewise be reduced to their skeleton equivalents. State sales tax and local property tax would also be eliminated in most cases since only wages/revenue will be taxed by the government.
By design, a skeleton government should have a maximum 15% total tax rate for federal, state, and city combined. Voters may decide how the maximum limit of 15% may be divided (e.g., 3% federal, 4% state, 8% city).
In order to accommodate this, spending would have to be reduced dramatically since nearly all government expenditures have cheaper alternatives to allow for a very low tax rate. For example, possible solutions are presented on this website for government pension plans (c.f. Social Security), health care costs (c.f. Medical Insurance), national debt interest (c.f. National Debt), cost of goods/services (c.f. Inflationary Tax), among others.
Elimination of entire programs may be necessary such as replacing the failed incarceration system that hasn't deterred crime for centuries at both the federal/state level with a more effective punitive system (c.f. Eye-For-An-Eye Justice System). Or, impose an exile measure since criminals have failed to uphold the laws of the country (c.f. True Citizenship).
City taxes should be higher than the others since everyday needs (e.g., police, fire, schools, water/sewer, road repair, garbage collection, etc.) are at the local level. Spending for education both at the collegiate and K-12 grades may no longer require government funding (c.f. Free College). Eliminating property taxes and workplace city taxes (the latter reflecting taxation without representation) will require federal/state rates to be under their 5% maximums to allow for a greater portion for local city taxes.
Overall, there will be a multitude of spending cuts across all branches of government to accommodate a skeleton government's maximum 15% total tax rate.
bottom of page