What spending cuts would you make?
The federal budget in 2010 was $3.55 trillion. The total revenues was $2.38 trillion. So, your goal is to find $1017 billion in cuts and taxes to balance the budget. You could perhaps exclude the 2010 portion of the economic stimulus program of $353 billion, so you "only" need to come up with $664 billion. Please show your math.
10% across the board gets you about halfway there. You need 19%.
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- 10 years agoFavorite Answer
first of all, you are talking about the deficit problem....but you make the presumption that the bulk of the problem is on the spending side. sure there is some savings that can be had from some cuts, but the bulk of the problem is on the revenue side of the equation, and most of the spending problems is war spending ..not domestic spending.
So what would I do to solve the deficit problem?
1) I would cut war spending down by 50% somehow someway..whatever it is we have to do to get there. Our foreign policy would have to be somehow someway 50% cheaper. Its amazing what might happen if the money is just not there to fight unending warfare...you think it might force the government to have different policies? of course it would, it would force them to have policies that do not lead to unending perpertual war.
2) I would deal with the social security issue by keeping the benefits that americans are used to ..I would not do freezes, and eliminations of cost of living increases nor would I raise retirement age to a draconian age 70 as is being talked about. I would a) eliminate the ceiling on social security so that the richest americans can pay into it...and I would install a system that makes it so that there is a ceiling on benefits so that while the super rich contribute a whole lot, they would not pull out anymore than someone who used to make say about $50,000 per year. In other words I would force the rich to participate and help fund the program to help the entire society that has helped them get so rich. It would be their way of thanking society.
3) I would close corporate loop holes for big corporations that have sales in excess of $900 million dollars or that that have in excess of $900 million dollars in owners equity. I would give more tax cuts of small businessed that have sales of less than $300,000 a year.
4) I would impose tariffs on american corporations that used to make goods in the USA anytime in the last 20 years that are now importing them to sell to americans in USA. The tariff would be $100 for every pound of merchandise. This tariff would not apply to legitimate foreign companies that have traditionally imported goods into the USA like mercedes benz etc. or foreign wines, or other goods that americans have traditionally needed to import. My tariffs would target the greedy american companies.
5) I would would have a flat estate tax for for any estate larger than $10 million dollars of 15% of the value of the entire estate.
6) I would simplify the income tax system federally by having these taxes in the following manner: any income of less than $25,000 ...no income tax. any part of Income from $25,001 to $30,000 is taxed at 5%. any part of income from $30,001 to $40,000 is taxed at 7%, any part of income from $40,001 to $50,000 is taxed at 12%, any part of income in excess of $50,001 to $70,000 is taxed at 15%, any part from $70,001 to $150,000 is taxed at 18%, any part from $150,001 to $200,000 is taxed at 21%, then any part from $200,001 to $250,000 is taxed at 25%, then any part from $250,001 to $300,000 is taxed at 30%, then any part from $300,001 to $400,000 is taxed at 35%, and any part from $400,000 $700,000 is taxes at 40%, and any part in excess of $700,001 to $ 3 million is taxed at 45%, anything in excess of $3 million and one dollar all the way up to $10 million dollars would be taxed at 50%. Then anything above $10 million dollars would be taxed at 55%.
I would leave capital gains tax at 15% for any annual gains of less than $5,000, but would raise it to 25% for any gains between $15,000 and $100,000, and to 35% for any gains in excess of $100,000.
Thats how I would solve the problem.
Yes I would look for some savings by eliminating wasteful programs and wasteful war spending etc.. but I would go to the heart of the problem and bring in more revenue. I also want to bring to the attention that the type of income tax policy I propose used to exist in the USA...and we did not have a deficit problem back in those days.
- Anonymous10 years ago
I would look at the overall operating cost of the House and Senate and the current administration. Their responsible for our current state of affairs. In my opinion their all over paid. Let them set the example, cut out the perks and take at least a 20% pay cut. Also who gives them the authority to vote themselves a pay raise whenever they feel like it? The federal budget should never exceed the revenues. That's common sense. If you don't have it, don't spend it.Source(s): 70 years of living and watching what's happening in my country. The rich get richer and middle income takes the jerk.
- Anonymous10 years ago
10% across the board
- Anonymous10 years ago
I would increase taxes and spending to help the weakened economy.