We have a big deficit and some people think the only way to reduce it is to raise taxes.
The linked website below lets you play emperor with the budget. If given total power over the budget, could you reduce the deficit?
I was able to eliminate the deficit in a single year by eliminating:
That's it. That's all I had to do in order to balance the budget. Of course, less drastic things could be done and balance the budget too. Cut some of the programs and freeze spending increases in others.
The point is, yes, you can balance the budget without raising taxes. It just means making some tough choices. But better for the government to make those tough choices on its own bloat than to fleece the American people for more money that is largely squandered.
I can't access the site right now.
I wouldn't make medicaid and welfare my first cuts. They'd be on the list, but, frankly, from what I've discovered, we need to seriously change our attitude before eliminating them. I believe that we need to cut a lot across the board.
I'll try to access the site later on tonight and share my results if I'm successful.
Well, I cut everything except veteran's benefits and SS by 10%, cut social programs by 50% (I'm for elimination as well, but the 50% threshhold leaves a "safety net" that would give transition time), and increased personal tax cuts and health care tax cuts by 20%, and came out $3 billion in the black.
It's a fun game. I'm going to tinker with it some more.
Guess I am a scrooge at heart:
New budget is $3203.03 billion($2128.2 billion in spending, $1074.83 billion in tax expenditures and cuts).
I understand Baker's assertion, but the game does not allow you to be discretionary (perhaps that is an idea for another Stardock game) as doing so would greatly complicate the calculations.
But I do not agree with the so called called Economists that say a surplus will lead to a recession.
But people, mainly democrats, don't see it that way. They blame the government if they are not making a so-called "decent" income. If they poorly manage their income and end up in debt....it's the governments fault somehow.
I believe people are poor because of their own choice.
The first step in reducing the deficit should be to take the point of view that no program is untouchable.
The second step should be to take the point of view that no program is untouchable.
The truth is, even the more moderate government programs have generally risen at a rate that well exceeds that of inflation. And they've been doing it for so many years that they've become vastly overinflated. I think a good rule of thumb would be a minimum 10% reduction for every program except veterans' benefits and Social Security, with higher amounts going based on priority. I think Aid for Low Income Families should be cut by 70% to leave a "contingency fund" for the transition time. If states want more welfare money, let them raise it and not rely on the fed. Privatizing would be a good rule, and 50% of all surpluses from the reductions should be applied to tax cuts, with the remaining 50% applied to debt reduction. Federal funding for education and agriculture should be eliminated entirely.
The problem is not that we need to raise taxes. The problem is, we need to reduce spending. DRASTICALLY. When per capita federal expenditures top $9000, I think we can all say we're getting mighty poor bang for our buck.
In 90% of the cases, I would agree with you.
I would say, though, that they are poor as a result of the choices they've made, not that they consciously chose to be poor. What we need to do is educate them on how to find a way out. And you can't do that by offering a free lunch.