1. McCarthy realized that only about 11% of the Budget can be cut at all.
Speaker Kevin McCarthy (R-Calif.) said Wednesday that President Biden “walled off” all but 11 percent of the federal budget for spending cuts in their debt ceiling negotiations. “We only got to loo…
thehill.com
“The majority driver of the budget is mandatory spending. It’s Medicare, Social Security, interest on the debt,” he said. “So you only have 11 percent to look at this budget.”
2. You want to cut spending, but don't say what to cut. Please be specific. I'd start with cutting ALL foreign aid, unless there is a return on investment.
Hint: you can only cut non-defense discretionary spending. (why is foreign aid in w/Defense???)
2021 Federal Budget
Outlays $4.88T
Receipts $3.86T
Deficit $1.02T
Discretionary Spending
Defense $753b
Non-defense
$733b
Total $1.49T
Mandatory Spending
Social Security $1,115b
Medicare 746b
Medicaid 452b
Other 660b
Interest on Debt
379b
Total $3.39T
Non-defense discretionary (NDD) programs comprise domestic and international programs outside of national defense that Congress funds on an annual basis. These programs are called “discretionary” because policymakers have discretion to decide their funding levels each year through the...
www.cbpp.org
View attachment 804071
Brief overview of US foreign aid contributions to various countries, presenting rankings based on the amount of aid provided.
worldpopulationreview.com
To get out of the fiscal mess we're in because the government stole the SS surplus, we need to raise taxes. My solution to get back to a surplus is:
1. Add a 4% Federal sales tax for 10-years. After 10-years it must be passed or it dies. (gains ~$1T a year)
2. Add a 0.5% transaction tax on all financial transactions for stocks, bonds, and derivatives, etc. (gains a lot)
3. Add a 1% Remittance Tax on all money transferred out of the US. (Gains ~$150b /yr)