Saturday, March 12, 2011
How can we reduce the federal budget deficit?
Over the next decade, United States Federal budget Deficits will total $7 trillion if the governmental laws and policies that are currently in place do not change (see here). According to the article, if the federal debt continues to grow at a rate faster than the economy (which it has done since 2007) the growth of people's income will slow down, the amount of federal spending needed to pay interest on the debt (the third largest portion of gov't spending already) will continue to increase, and the risk of a fiscal crisis will increase. The report offers 105 options that would reduce projected budget deficits, and you can take a look into options for reducing mandatory spending, for reducing discretionary spending, and for increasing revenues. After looking at this report, what ideas do you have for digging our country out of this record-setting hole?
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I think we should look into reducing mandatory and discretionary spending. A lot of articles I have read about the deficit in the class talk about unnecessary military spending and I think we should look into cutting some of it. Also, one of the reports I read while writing the final talked about broadening the tax base and lowering the tax rates as an alternative way to raise additional revenue (alternative to increasing the tax rates).
ReplyDeleteWe need to pay down the debt. This will include tax hikes and spending cuts. Although I am more in favor of a broad tax with a low rate.
ReplyDeleteNice article find. I wish I saw it before writing my essay.
ReplyDeleteAnywho, substantial restructuring of current spending practices and tax bases need to happen to dig ourselves out of debt. Cutting mandatory spending by increasing the age for social security/medicare and slicing defense/military is key.
Tax bases need to be adjusted. And although I find Homeland security to be a necessity, I do believe our other military expenditures could come down a little bit. I'm not sure exactly how much that could/should be, but if we did stop poking our noses into everyone's business so much or searching for "Weapons of Mass Destruction" I'm sure we wouldn't have to spend as much on our military.
ReplyDeleteSpending cuts must be done, no matter how it is done or who dislikes it. This is the only way to start reducing our deficit. Our taxes are at average levels now and to increase these would create a huge backlash in the public's eye, so the next thing to do is stop spending. It is such a simple idea that does not seem to want to be done, so unless we change some of our mandatory / discretionary spending, we will remain in the hole we are now over our head in.
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