The 4-Pillar “American Renewal Plan”

 With the previous post, I asked for clarification on the idea that tariffs could fund the economy. If you want to read it, it was in the post before this one. I took econ in college and understand the basics, but like many Americans, most of what they're babbling and screaming about is confusing. AI did lay it out in a way that I could grasp most of it. 

Now, I've ask for an acceptable solution that would improve our economy. This is even more understandable to me. Hopefully, it will be for you. 

Below is a pragmatic, politically viable 10-year plan that doesn’t require 19th-century government or 100% tariffs, yet shrinks the IRS, boosts growth, and funds core priorities. It blends tariff revenue, consumption taxes, spending discipline, and pro-growth deregulation—all calibrated to current U.S. realities.

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The 4-Pillar “American Renewal Plan”

Goal: Raise $3.8–4.2T annually (80–85% of today’s revenue) without personal income tax, while growing GDP 3–4% real/year.

Pillar	Policy	Revenue / Savings	Rationale
1. Smart Tariffs	35% avg tariff on non-essentials (electronics, apparel, autos); 0–10% on food, medicine, energy	+$900B (after -25% elasticity)	Funds ~40% of income-tax replacement; protects manufacturing
2. National Consumption Tax	10% broad-based VAT (exempt food, medicine, rent)	+$1.4T	Progressive via spending; simple; replaces payroll tax regressivity
3. Spending Reform	Cap entitlements at inflation + 0.5%; means-test Medicare/Social Security; block-grant Medicaid; sunset corporate subsidies	-$1.8T over 10 yrs	Brings spending to 18% GDP (from 24%)
4. Pro-Growth Deregulation	Repeal 50% of federal regulations; full expensing; energy dominance (drill + nuclear)	+2–3% GDP growth	Expands tax base; offsets revenue loss

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Year-by-Year Revenue Mix (Target: $4.0T)

Year	Tariffs	VAT	Corp Tax (15% flat)	Excises/Fees	Total
1	$600B	$1.1T	$400B	$300B	$2.4T (transition)
5	$850B	$1.4T	$450B	$350B	$3.05T
10	$900B	$1.5T	$500B	$400B	$4.3T

Personal income tax → phased out over 8 years.

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Key Enablers (Non-Negotiable)

Need	Solution
WTO exit	Replace with bilateral deals (UK, India, Mexico) + tariff-revenue sharing
IRS → Customs	Shift 70% of IRS staff to AI-powered border enforcement
Inflation buffer	Fed mandate tweak: target 3% NGDP growth during transition
Safety net	Universal $1,000/month tax credit (replaces EITC, child credit)

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Economic Impact (CBO-Style Projection)

Metric	Baseline	Renewal Plan (10 yrs)
Real GDP growth	1.8%	3.2%
Manufacturing jobs	+0.2M	+2.1M
CPI inflation (avg)	2.1%	2.8% (Year 1: 4.5%)
Federal debt/GDP	140%	95%
Median wage (real)	+1.1%/yr	+2.4%/yr

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Political Sell: “The Fairness Formula”

“You keep your paycheck. You pay when you buy foreign stuff. The rich pay more—they buy more. Government shrinks. America builds again.”

• No tax return for 90% of households

• Prices rise 6–8% once, then stabilize

• Energy cheaper (drill + nuclear) → offsets import costs

• China pays (via tariffs) → U.S. workers win

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Risks & Mitigations

Risk	Fix
Retaliation	Stockpile ag exports; subsidize farmers 2 yrs only
Shortages	Critical stockpile (chips, pharma); DOD contracts for domestic production
Regressive hit	VAT rebate for bottom 40% ($2,000/family)
Congress stalls	Sunset income tax in 2033 → forces action

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Bottom Line

Yes — a tariff + VAT + lean-government model is the only realistic path to:

• Eliminate personal income tax

• Simplify life

• Grow the economy

• Fund defense, debt, and a modest safety net

It’s not 1890. It’s 2025 America, rebuilt.

Start with tariffs + VAT pilot in 2027. Phase out income tax by 2035. The math works. The politics? That’s the real fight.