Ideas on lowering the national deficit?
I'm doing a little paper where I have to state ideas to lower the national deficit, including things that other people might suggest. So I thought where better to go than a community of opinions? Feel free to let your imagination soar!
- The SolutionLv 78 years agoFavorite Answer
If I may, I'd like to sort out Debt and Deficit for you. It will make your paper sound much better.
Every year we bring in Tax Revenue and we Spend. If we SPEND more than we bring in, we have an Annual Deficit and we must Borrow enough Money to pay for the Excess Spending.
Year after year of Borrowing to pay for the Annual Deficits has produced our Public Debt.
I find it helps to define our terms and have a better understanding from the Beginning.
There are 2 Ways to Reduce or Eliminate Deficits.
1) Increase Revenue.
2) Decrease Spending.
Or a combination of Both.
There are Different ways to Increase Revenue:
1) Increase Individual Income Taxes on All or Some Americans.
2) Increase Corporate Income Taxes on All or Some Businesses.
3) Grow the Economy so that MORE Goods are being produced and more people are working paying taxes.
There are a multitude of ways to Reduce Federal Spending:
1) Turn over Dept of Ed, Environment, Welfare, Healthcare, etc....all except Defense and Foreign Affairs back to the States to run. (my personal favorite, and the Favorite of our Founding Fathers who set our country up to PREVENT 536 Elected Officials in Washington, DC, from usurping Uncontrollable Power)
2) Means test the Recipients of Social Welfare Programs....try to find out how many and who are Capable of doing more for themselves, but CHOOSE to let the Government provide for them with your and my hard earned tax money.
3) Reduce Defense and Military Costs (I'll cut and paste my entire budget balancing plan at the end)
Essentially, we have to do some of BOTH....Cut Spending and Increase Revenue. It is how we do that which is the Problem....Taxing the Rich slows growth and even though you INCREASE Revenue with their new Tax Rate, you slow the Economic Growth and fewer people get hired, fewer products are produced and it doesn't help.
And cuts should be cautious to not adversely those Truly in Need....we have lost the Meaning of Need and Want in my opinion.
Everyone should have their needs met....if they are INCAPABLE or disabled and can't meet their Basic Needs, we should, by all means, provide for them, BUT, those that Spend the Income they do have on WANTS before they satisfy their NEEDS, then Stick out their hands for help are the ones Bankrupting our Nation and giving 'Welfare' a bad name.
Here is my PLAN, hope it helps in your search for ideas:
I'd Start with 2013....
Cut 30% from Military Spending...About $250 Billion, by Closing All Overseas Bases, EXCEPT for RAF Mildenhall, UK, Rammstein AB, Germany, and Kadena AB, Japan. Each of those would have a Squadron of Fighters, Bombers and Tankers, Minimal Ground Forces for Security, and a Moth-Balled Major Hospital.
That Brings the Deficit down to about $1 Trillion for 2013.
Next, we cut 10% spending off the Top from Welfare and Healthcare Spending. Of course, we have to Means Test and Cut those that COULD do more for themselves if they so Chose To, and Maintain Support for those that are UNABLE to provide the Essentials for Survival. That would Save about $150 Billion.
That lowers 2013 Deficit to about $850 Billion for 2013.
That would be a good Start....Stem the Flow. I'd maintain that for 2014. While NOT Increasing any other Spending, keep the same Cuts in Place.
That would be $800 Billion LESS added to the $16.2 Trillion Debt that we will have after 2012.
For 2015, we Get Rid of the Bush Tax CUTS on ALL Americans. That is about $40 Billion in increased Revenue from the Richest 2.5% and about $60 Billion more Revenue from the Remaining 97.5%, ANNUALLY.
Now we are ONLY adding 3/4 of a Trillion $$ per year to the Debt by 2015.
Now we have to make the Tough Cuts...We have to Workout Social Security and Medicare. We need to get the systems to the point that they are OWNED by the People, and NOT a Slush Fund for Politicians to INCREASE Spending on Other Programs....I have Plans to fix them, too, but there is not enough Time or Space here.
In 2016, we have to Hit Defense and Welfare Again...No Choice. We have to Knock another 20% off of Defense...we can Eliminate Foreign Aid and Foreign Military Aid for awhile, that will save about $100 Billion per year. AND, another 10% off of Welfare and Healthcare....another $150 Billion in Savings.
That brings Annual Deficits DOWN to $500 Billion per year....the Growth is Slowing, our Interest Payment is NO Longer Increasing by 7-10% a year...We get our AAA+++ Credit Rating Back and will pay a Lower Interest Rate on our Borrowing...CONFIDENCE will Start Returning to the System.
Investment will Pick up, Production will increase, the GDP will Start to Grow, and EMPLOYMENT will Pickup which will Greatly Increase Tax Revenue for 2017.Source(s): Hopefully by 2025, we will be down to a Balanced Budget ANNUALLY, and start producing Surplus', which should be used to SHORE up Social Security and Medicare... AND Start paying down the Principal to what should be NO More than about $21 or $22 Trillion at that Point. It may take 50 more years to pay the Public Debt down slowly, but, we will have a Responsible, Confident, Fiscally Sound Economic System by then, and we will ALL be Better off.
- Anonymous8 years ago
spend it on things that actually pertain to things americans use and not government shady backroom dealing
- THE EMPERORLv 68 years ago
Legalize marijuana. Seriously. I don't smoke it, but that would help out a lot.