Balance the Budget, pay down the $22T Debt, then do infrastructure

[kyzr]

Here are recommendations to cut spending and raise revenue to start paying down the $22T Debt

Cut Spending: [CUT $625b a year]
1. Cut defense to 2017 levels $600b until the Debt is reduced, saving $150b
2. Cut foreign aid $55b (until Debt is paid we can't borrow to give money away)
3. Cut Welfare $200b & Medicaid $200 (about half)
4. Cut education $20b (state responsibility)

US Government Defense Spending History with Charts - a www.usgovernmentspending.com briefing
Current US Defense Spending
Year Military Veterans Foreign Aid Total Defense
2017 $598.70 billion $178.00 billion $46.30 billion $823.00 billion Say $600b + veterans & no foreign aid
2018 $631.20 billion $180.40 billion $49.00 billion $860.50 billion
2019 $684.60 billion $202.10 billion $54.30 billion $941.00 billion
2020 $737.90 billion $219.20 billion $53.10 billion $1.00 trillion

Raise Taxes: [Raise $900b new revenue a year]
To cover the $900b budget deficit the following taxes need to be raised:
1. Raise the top tax rate about 7% above 2016 levels +$400b
2. Implement a new 3% Fed sales tax +$400b
3. Implement a new transaction tax on all stocks & bonds Impose a Tax on Financial Transactions | Congressional Budget Office +$100b
4. Implement a new remittances tax/fee on all money sent out of the US https://www.americanthinker.com/articles/2018/05/tax_remittances_can_build_the_wall.html 2% of $140b is +$3b a year

If the above recommendations are implemented the $22T Debt would be reduced by about $600b a year. Which would reduce the "interest payment on the Debt", then after 10-years new infrastructure would be affordable.

 

[Thinker101]

Here are recommendations to cut spending and raise revenue to start paying down the $22T Debt

Cut Spending: [CUT $625b a year]
1. Cut defense to 2017 levels $600b until the Debt is reduced, saving $150b
2. Cut foreign aid $55b (until Debt is paid we can't borrow to give money away)
3. Cut Welfare $200b & Medicaid $200 (about half)
4. Cut education $20b (state responsibility)

US Government Defense Spending History with Charts - a www.usgovernmentspending.com briefing
Current US Defense Spending
Year Military Veterans Foreign Aid Total Defense
2017 $598.70 billion $178.00 billion $46.30 billion $823.00 billion Say $600b + veterans & no foreign aid
2018 $631.20 billion $180.40 billion $49.00 billion $860.50 billion
2019 $684.60 billion $202.10 billion $54.30 billion $941.00 billion
2020 $737.90 billion $219.20 billion $53.10 billion $1.00 trillion

Raise Taxes: [Raise $900b new revenue a year]
To cover the $900b budget deficit the following taxes need to be raised:
1. Raise the top tax rate about 7% above 2016 levels +$400b
2. Implement a new 3% Fed sales tax +$400b
3. Implement a new transaction tax on all stocks & bonds Impose a Tax on Financial Transactions | Congressional Budget Office +$100b
4. Implement a new remittances tax/fee on all money sent out of the US https://www.americanthinker.com/articles/2018/05/tax_remittances_can_build_the_wall.html 2% of $140b is +$3b a year

If the above recommendations are implemented the $22T Debt would be reduced by about $600b a year. Which would reduce the "interest payment on the Debt", then after 10-years new infrastructure would be affordable.

Good suggestions, but difficult with idiot libs that want to push programs like the New Green Deal, Medicare for all, free college, free income, etc.

 

[MarathonMike]

Paying down debt is always hard whether it's on a personal or national level. Ignoring mounting debt is always bad and we are nearing the point where it will be a stretch to even pay the INTEREST on the debt.

Other suggestions: We need to go after government waste fraud and abuse very aggressively and highly publicize the punishments for abusers. All Federal government departments targeted for 1% per year reductions in staff for 5 years. Close non strategic US bases around the world.

 

[Harpy Eagle]

Paying down debt is always hard whether it's on a personal or national level. Ignoring mounting debt is always bad and we are nearing the point where it will be a stretch to even pay the INTEREST on the debt.

Other suggestions: We need to go after government waste fraud and abuse very aggressively and highly publicize the punishments for abusers. All Federal government departments targeted for 1% per year reductions in staff for 5 years. Close non strategic US bases around the world.

I would go with a 5% cut across the board spread out over the next 3 years to avoid damaging the economy. Let the agencies decide if that is in people or other ways of cutting back.

Also, reward agencies in some way for returning money at the end of the year, instead of the current..."we have to use it or lose it next year" mentality. I could not tell you how much money I wasted in the Corps because I was directed to have every time spent by early Sept each year.

 

[kyzr]

Paying down debt is always hard whether it's on a personal or national level. Ignoring mounting debt is always bad and we are nearing the point where it will be a stretch to even pay the INTEREST on the debt.

Other suggestions: We need to go after government waste fraud and abuse very aggressively and highly publicize the punishments for abusers. All Federal government departments targeted for 1% per year reductions in staff for 5 years. Close non strategic US bases around the world.

Reagan hired a consultant in 1982 to do a thorough review of the Federal government to see where cost savings could be realized, it was called "The Grace Commission". The Grace Commission - Wikipedia

"The Grace Commission Report was presented to Congress in January 1984. The report claimed that if its recommendations were followed, $424 billion could be saved in three years, rising to $1.9 trillion per year by the year 2000. It estimated that the national debt, without these reforms, would rise to $13 trillion by the year 2000, while with the reforms they projected it would rise to only $2.5 trillion. The report's recommendations that intruded into policy were ignored by Congress, but many other efficiency recommendations were considered and some were implemented. The debt reached $5.8 trillion in the year 2000. The national debt reached 13 trillion after the subprime mortgage-collateralized debt obligation crisis in 2008.

The report said that one-third of all income taxes are consumed by waste and inefficiency in the federal government, and another one-third escapes collection owing to the underground economy. "With two thirds of everyone's personal income taxes wasted or not collected, 100 percent of what is collected is absorbed solely by interest on the federal debt and by federal government contributions to transfer payments. In other words, all individual income tax revenues are gone before one nickel is spent on the services that taxpayers expect from their government."

I hope Trump does another "Grace Commission" to reduce the Budget Deficit. We could have been much better off if the dumb pols had followed the recommendations.

 

[MarathonMike]

Paying down debt is always hard whether it's on a personal or national level. Ignoring mounting debt is always bad and we are nearing the point where it will be a stretch to even pay the INTEREST on the debt.

Other suggestions: We need to go after government waste fraud and abuse very aggressively and highly publicize the punishments for abusers. All Federal government departments targeted for 1% per year reductions in staff for 5 years. Close non strategic US bases around the world.

Reagan hired a consultant in 1982 to do a thorough review of the Federal government to see where cost savings could be realized, it was called "The Grace Commission". The Grace Commission - Wikipedia

"The Grace Commission Report was presented to Congress in January 1984. The report claimed that if its recommendations were followed, $424 billion could be saved in three years, rising to $1.9 trillion per year by the year 2000. It estimated that the national debt, without these reforms, would rise to $13 trillion by the year 2000, while with the reforms they projected it would rise to only $2.5 trillion. The report's recommendations that intruded into policy were ignored by Congress, but many other efficiency recommendations were considered and some were implemented. The debt reached $5.8 trillion in the year 2000. The national debt reached 13 trillion after the subprime mortgage-collateralized debt obligation crisis in 2008.

The report said that one-third of all income taxes are consumed by waste and inefficiency in the federal government, and another one-third escapes collection owing to the underground economy. "With two thirds of everyone's personal income taxes wasted or not collected, 100 percent of what is collected is absorbed solely by interest on the federal debt and by federal government contributions to transfer payments. In other words, all individual income tax revenues are gone before one nickel is spent on the services that taxpayers expect from their government."

I hope Trump does another "Grace Commission" to reduce the Budget Deficit. We could have been much better off if the dumb pols had followed the recommendations.

Thank you for posting that, I remember the Grace Commission report and it was one of the great failures of our government to ignore it's findings and recommendations.