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The article focuses on tax reforms in some U.S. states. It states that the plan of Maryland Governor Martin O'Malley of converting the flat income taxes to a progressive system and a combination of tax hikes in certain sectors have contributed to a balanced budget and extended social services. Other states followed similar tax reforms including Wisconsin, Oregon and North Carolina with their new added income-tax brackets for high earners, cuts in tax exemptions of higher income households and progressive tax surcharges.

The article comments on the proposed solution for the U.S.' austerity issue. According to the author, the proposals remain perverse and unpopular because of the high level of importance being given to social outlays. He warns that if the benefits provided by unaffordable programs like Social Security and Medicare will not be cut, the U.S. is at risk of bankruptcy or becoming more indebted to China. He believes that commitment to a smaller and more austere government will help the country solve the problem with austerity.

Presents a concept on social insurance with great political potential in the United States. Overview of social insurance in the book 'Making Sense of Social Security Reform'; Vision of extending social insurance from the elderly to the broader population; Equation of social insurance with social security and medicare.