Cool Deficit Calculator

[Epsilon Delta]

Thought this might be cool thing for all those new-found budget nerds (Haha): The CEPR Deficit Calculator <= link

You basically get the proyected debt-to-GDP ratio and a bunch of checkboxes on the side, as you check each you increase or decrease the deficit:

There is considerable concern that the debt burden that United States will face by the end of the next decade will place serious strains on the government and the economy. It is not clear how high the debt can go before it begins to hamper economic growth or raise questions about the creditworthiness of the U.S. government. As is shown on the calculator below, the debt burden has been much higher for the United States in the past and is currently far higher for many countries than it is projected to be in the baseline scenario for the United States in 2020.

This calculator allows users to see how various policies will affect the debt burden in 2020. These options have appeared in public debates (or should) and would have a substantial impact on the deficit. The calculator allows users to select whatever target they consider appropriate given the various reference points shown.

Here's some of the budget options and how they'd affect the deficit over the period up to 2020:

Financial Speculation Tax (-$2.1 trillion in deficit by 2010)
This is a modest tax on financial transactions like trades of stocks, options, futures and credit default swaps. A modest tax on these trades (e.g. 0.25 percent on the sale or purchase of a share of stock) would be barely noticeable to long-term investors. However, this sort of tax would be very costly to people who buy and sell stock by the hour or even the minute.

The United Kingdom has had a tax like this place for many decades, but only applies to stock trades. It raises an amount that is equal to almost 0.3 percent of the country’s GDP. This would be $40 billion a year in the United States. A tax imposed on trades of a wide range of assets, like options, futures, and credit default swaps, in addition to stock trades, could raise 1 percent of GDP or more than $140 billion a year.

Raising the Normal Retirement Age for Social Security (-$155 billion in deficit by 2010)
This proposal would raise the normal retirement age to 70 by 2040. The normal retirement age has already risen to 66. Under current law, it will begin rising two months a year in 2016, so that people who reach age 62 after 2022 will have to wait until age 67 to get full benefits.

Negotiate Medicare drug price (-$2.1 trillion in deficit by 2010)
This option would have Medicare negotiate lower prescription drug prices for drugs purchased under the Medicare prescription drug plan. Currently people in the United States, including those taking part in the Medicare drug plan, pay close to twice as much for the same drugs as in countries like Canada or Australia that negotiate prices with the drug companies.

Freeze Nominal Discretionary Spending at 2013 levels (-$646 billion in deficit by 2010)
This proposal would hold constant in nominal terms all areas that fall in the category of domestic discretionary spending. This means that spending falls after adjusting for inflation and falls by close to 5 percent relative to the size of the economy. This category includes most federal spending on education, transportation, research and development, as well as the operations of many government departments like the Justice Department and State Department. Since many of these areas will be exempted from the implied cuts, real reductions in areas that are not protected will be 40-50 percent within a decade.

And well, there's many others in Defense, Retirement/Social Security, Environment, Health Care, Spending and Taxes. Try checking off the options that your politics can stomach and see how far YOU could lower the deficit. What are some of the policies you like, dislike? Are there some really outlandish ones?

I found this one to be really strange, I never thought of it, didn't think it could be done, but hey interesting idea:

International Medicare Vouchers (-$165 billion by 2010)
A system of Medicare vouchers would give Medicare beneficiaries (and also seniors covered by Medicaid) the option to buy into the health care system of other countries and split the savings with the government. Given the size of the cost differences, the savings could exceed $20,000 per beneficiary by 2030. Seniors could use these vouchers to buy into the health care systems of Germany, Canada, or other countries with health care systems comparable to ours.

 

[Douger]

U.S. National Debt Clock : Real Time

 

[Epsilon Delta]

Yeah, I've seen that one, Douger.

Thanks for posting in my thread. =\