Sponsored post by Principal Preservation Services and Principal Wealth Services
We are just past a month since President Donald Trump took office, and he and the Department of Government Efficiency (DOGE) team are focused on getting the government’s financial house in order.
The American people should be ecstatic right now with what the president is doing. First of all, he is doing what he said he was going to do, which is what most politicians don’t do.
DOGE
So far, he and the DOGE team have cut billions of dollars. Many of these programs have no benefit to the American people. So we as taxpayers should be excited to see that our dollars are going to be better used and not wasted. Also, they just exposed $4.7 trillion from the U.S. Treasury that was not coded properly, so it is virtually untraceable! That’s an eighth of our national debt—untraceable.
Let’s try telling the IRS during an audit that we can’t find our receipts and see where that brings us.
Unfortunately, the government has higher expectations for us than it does of itself when it comes to accountability. We can’t keep upping our credit limit to deal with our overspending and lack of discipline. We need to have a sound budget to stay within our income and spending needs. If not, we get in trouble and are penalized with possible foreclosure, collections, and possibly bankruptcy.
So like the new DOGE team, we need to do our best to create a proper budget/expense plan. I can’t stress this enough—you will get yourself in trouble if you spend more money than what you take home. Use credit cards for convenience, not for a loan!
Tariffs
The United States, up until recently, has had the lowest average tariff rates in the world, according to the White House. For instance, the U.S. has a 2.4% tariff on motorcycles from India, but India puts a 100% tariff on motorcycles from the U.S.
It doesn’t seem fair does it? I like what the president is doing here—making countries pay their fair share like we have for years. Here’s a couple of other reasons why I like them:
- It will bring in more revenue for our country, which we need since our revenue and our expenses are upside down right now. We are spending around $2 trillion more than what we are bringing in for revenue right now.
- By increasing our revenue and in addition to the DOGE cuts, there’s a greater possibility of no taxes on Social Security benefits, overtime, and tips. This is another promise that President Trump stated he would do.
IRS and flat tax
Additionally, President Trump and Republicans have been hinting at not having an IRS any more and possibly moving to a flat-tax system.
I think most Americans would love for this idea to become a reality. If we moved to a flat-tax system, around 20-25% flat sales tax—no more income tax—that would ensure that the more that people spend, the more tax they pay. Also, for those concerned about illegal immigrants, they would be paying taxes now along with anybody else here legally from another country.
On Jan. 9, Republican Buddy Carter introduced the “Fair Tax Act” bill to abolish the IRS and move to a flat-tax system—eliminating personal, corporate, death, payroll, and gift taxes. Stated in the bill is that taxes should be a lot simpler and we shouldn’t need to hire tax attorneys or accountants to file our taxes.
Mike Kojonen
Mike Kojonen is an Investment Advisor Representative and the founder and owner of Principal Wealth Services and Principal Preservation Services. He can be reached at: zvxr@cevapvcnycerfreingvbafreivprf.pbz
