Reducing the Deficit: Spending and Revenue Options

There is no doubt that the debt is an issue. There is no doubt that Americans want Congress to fix the issue. However, there is a lot of doubt on what would be the best way to address the issue. Many want it done by raising taxes, many by cutting spending, many want a combination of the two, and many believe it is too late. Of course these aren't the only solutions being proposed.

I personally believe in a combination of taxes and cutting spending. I believe if we are going to go down, the least we should do is to fight to the end in an effort to get ourselves out of this predicament. But I have to be honest, I have zero faith in Congress getting the job done.

The choices facing the 112th Congress come at a time when the federal government’s debt has increased dramatically in the past few years and when large annual budget deficits are projected to continue indefinitely under current laws or policies. Federal budget deficits will total $7 trillion over the next decade if current laws remain unchanged, CBO projects. If certain policies that are scheduled to expire under current law are extended instead, deficits may be much larger.

cboblog.cbo.gov...

Anyway, each year the Congressional Budget Office submits budget options to Congress on reducing the debt. Majority of the time, it is just a waste of trees. However, with all the attention on the debt ceiling and national debt, Congress might pay attention to this one.

This report presents 105 illustrative options that would reduce projected budget deficits. As in past reports, the options cover an array of policy areas—from defense to energy to entitlement programs to provisions of the tax code. The budgetary effects shown for most options span the 10 years from 2012 to 2021

www.cbo.gov...

Below are a few of the 105 options. Most of the options are for reduction of debt but there are a few that if chosen could increase the debt. It is not a comprehensive plan, just options that could be used to make a plan.The easiest way to maneuver within the PDF is to click on Appendix C or D to view the title of the options.

Introduce Minimum Out-of-Pocket Requirements Under TRICARE For Life

Reduce the Growth in Appropriations for the Department of Defense

Cap Increases in Military Basic Pay

Link Initial Social Security Benefits to Average Prices Instead of Average Earnings

Raise the Earliest Eligibility Age for Social Security

Raise the Full Retirement Age in Social Security

Repeal the Individual Health Insurance Mandate

Lower the Loan Limits on Mortgages Guaranteed by Fannie Mae and Freddie Mac

Increase Guarantee Fees Charged by Fannie Mae and Freddie Mac

Increase Payments by Tenants in Federally Assisted Housing

105 options PDF

Fight or Surrender?

Which option?

Options not on list, but should be?

i dont support raising taxes when the government has time and time again has proven itself incapable of spending what tax revenue they already collect wisely.

reply to post by neo96

i dont support raising taxes when the government has time and time again has proven itself incapable of spending what tax revenue they already collect wisely.

A point well taken and of course a True statement. But what do you expect when We the People continue to give them job security for the way they handle the nation's business?

reply to post by jam321


thats on us i think

the very definition of insanity is keep doing the sames things over and over again expecting a different result.

we are to blame here as much as government we know whats wrong and we keep doing the same thing over we know whats wrong but we never fix it and we elect people who makes it worse.

i am a proponent of a smaller less powerful government with less people which means less people doing the abusing.

the american government and the american citizen have a symbiotic relationship the government needs us for our cash and yet the governent seeks every chance and opportunity to take that cash from us the very thing needed for the governments survival.

right now i need my cash more than my government does for the reason i stated in my first post.


and no if they actually did their jobs they might deserve job security as it stands now all they give a flying fig about is their own greed and lust for power and control.

reply to post by jam321

Had trouble with pdf but hope none of these ideas are already on the list.
How about all federal employees take a small paycut and pay more of their own retirement plans? Others are having to do it, so why not them too?
Nobody wants to pay more taxes, but a very small 0.5% tax increase on everything but groceries and medicine that could ONLY be used to pay on the deficit would be okay with me.
Shutting down unnecessary military operations and staying out of everybody else's civil wars might save some money. We can't police the whole planet anymore.
Quit giving money to what seems like every other country in the world in the form of "aid". We need to aid our own country right now. Yes, there are starving people in other countries but we have people starving right here at home!
Many countries owe the USA oodles of money- let's start calling in some of those markers.
Every time we catch a politician in a lie let's make them pay a hefty fine that goes directly to paying the deficit.
Also I think the commander in chief should pay a fine every time he says "uhh".

Probably not really popular ideas, but I'm no economist!

Take the next ten years to ween the dependent citizenry (and big business) off the teat of big government.
1)Social Security and Medicare are inherently insolvent. A cold turkey cancellation of those programs would be disastrous, but a gradual reduction away to nothing is the answer. How silly are middle class entitlements? People who can take care of themselves are giving the government money to redistribute to others who can also take care of themselves. Just let everyone keep their own dang money to begin with! As for people in need, there should be a social safety net. But anyone who is a dependent cannot make the terms of their benefits. If you are living off the labor of others, you comply with their requirements. All welfare recipients should give an itemized reciept of all purchases made with taxpayer money and if nonessential items are bought, that amount will be deducted the next pay period. Get rid of all these different programs and agencies and consolidate into 1 agency/program that provides aid (and only if someone shows, beyond a shadow of a doubt, that are are in need of aid).

2)End any and all subsidies to any business, non governmental organization, non profit, etc. Bailouts should be illegal.

3)Drastically reduce military spending. Why do we need large bases in Japan and Germany? End the wars. Maintain a nuclear arsenal and just enough of a standing military to keep potential enemies at bay. Protecting the interests of globalists, bankers,corporations, defense contractors,and radical ideologues is inimical to the interests of the average American citizen.

4) Completely dismantle the rapidly expanding Police State. Not only is it a betrayal of American values, it is very expensive.

5) The drastic reduction in size of the federal government would greatly take away the ability of special interests and big business to lobby the government to spend lots of money or grant them privilege.

So there you go. Cut everything except infrastructure maintenance, practical (non politicized) scientific research, basic administration, emergency funding (rainy day type funds for large natural or manmade catastrophes that may prove too big for 1 state to handle). Let the states handle their own affairs, let people vote with their feet. Allow a true, free market that does not grant favors to those that pay the politicians. Promote self sufficiency and self reliance.
No more federal reserve, no more debt limit problems.

The politicians, banks, large corporations, government contractors, nanny state advocates, etc would never allow this to happen, btw. ...sigh...

reply to post by neo96

we are to blame here as much as government we know whats wrong and we keep doing the same thing over we know whats wrong but we never fix it and we elect people who makes it worse.

Amen!

i am a proponent of a smaller less powerful government with less people which means less people doing the abusing.

I can agree with you on this. The question is how small is small?

and no if they actually did their jobs they might deserve job security as it stands now all they give a flying fig about is their own greed and lust for power and control.

job security I was talking about is that we keep voting the same ones in and like you said, expecting different results.

Appreciate your comments.

reply to post by littled16

Nobody wants to pay more taxes, but a very small 0.5% tax increase on everything but groceries and medicine that could ONLY be used to pay on the deficit would be okay with me.

Only if there is an amendment attached to it that the money can only be used for that sole purpose.

reply to post by jam321

The question is how small is small?

yep that a whole other arguement

some people say the current government is too small and needs more power.

and i would disagree with that

and that arguement has been raging since the creation of this country.

reply to post by louieprima

Cut everything except infrastructure maintenance, practical (non politicized) scientific research, basic administration, emergency funding (rainy day type funds for large natural or manmade catastrophes that may prove too big for 1 state to handle). Let the states handle their own affairs, let people vote with their feet. Allow a true, free market that does not grant favors to those that pay the politicians. Promote self sufficiency and self reliance. No more federal reserve, no more debt limit problems.

Now that would be a small government.

All welfare recipients should give an itemized reciept of all purchases made with taxpayer money and if nonessential items are bought, that amount will be deducted the next pay period.

Who determines what is nonessential? I know currently there are certain items that can't be purchased.

Thanks for your comments.

Our trade policies have to change or all will be for naught.

Tariffs would be instant tax revenue for the government, and at the same time bringing jobs here as it would be cheaper to employ and sell items here than move to China and ship it here.

We need the economic barrier to change the bleeding of jobs. This is a large part of the problem...that and the 2 wars and tax cuts that were never payed for.

reply to post by David9176

Tariffs would be instant tax revenue for the government, and at the same time bringing jobs here as it would be cheaper to employ and sell items here than move to China and ship it here

Do we still have the infrastructure and resources to manufacture things here?

Got a quote for you my friend

It's impossible to raise capital in the United States, and you cannot compete against China because land is free, water is free, electricity is sold far below production cost, there are no environmental restrictions, capital is freely available, and they can (and do) copy anyone's technology. How is this free trade?

www.americanmanufacturing.org...

reply to post by jam321

Do we still have the infrastructure and resources to manufacture things here? Got a quote for you my friend

China has a leg up on "rare earth" resources....but there is no reason we can't be sufficient. The point is..we are a huge buyer of Chinese products.

We borrow money from them to buy their crap. If we tariffed their exports that come into America, that would put more balance. Our trade deficit is unsustainable. Something has to be done about it, lowering taxes to zero, as you stated, and we still wouldn't be able to compete. That is why tariffs are needed.

If we can't afford that Chinese made Xbox or dvd player anymore, then we don't buy it. Eventually someone will start a business in American, employing Americans, that will be able to sell at a lower price than the Chinese or any other country can.

reply to post by David9176

China has a leg up on "rare earth" resources....but there is no reason we can't be sufficient. The point is..we are a huge buyer of Chinese products.

I recall awhile back, there were reports of China hoarding these resources.

As for tariffs, I often wonder why the US continues to push for FTA's. Does the US benefit that much from them?

reply to post by jam321


I am all for a balanced approach myself -

A wise man that never existed once said; "hatchet and a blow torch will not result in a healthy patient in the end"

Originally posted by jam321
reply to post by David9176

 

China has a leg up on "rare earth" resources....but there is no reason we can't be sufficient. The point is..we are a huge buyer of Chinese products.

I recall awhile back, there were reports of China hoarding these resources.

As for tariffs, I often wonder why the US continues to push for FTA's. Does the US benefit that much from them?

Only if you equate the "US" as being a hand full of executives, it certainly benefits...


It is a choice to look at the success of 6,000 people and the decide to ignore the peril of
200,000,000. I guess the opposite is true, but the fact is the 6,000 people already have a
tremendous advantage at this point in history, they have been given a lot of consideration,IMO.