A lot of nonsense has appeared on this board and other places about how to balance the budget. None of us are budget experts but the ignorance that many peole have about what the government does is appalling. I'm going to list what the government does and how much I think they should be cut and how. Tax increases will also be necessary. This will need to be done over ten years. Any faster will hurt the economy.
Social security, medicare and medicaid cost 1.8 trillion and are half the budget. I would cap social security benefits at 50,000 a year and I would raise medicare premiums for millionaires.
The military budget is 600 billion and should be cut in half over 10 years. Stop defending Europe and Japan.
Eliminate agriculture subsidies to agribusinesses and rich farmers. Agriculture currently costs 100 billion. The EPA, education, housing, and the rest of government cost 600 billion and I would not cut here. Interest on the debt is 500 billion and can not be cut without reducing spending elsewhere.
Tax increases should be as follows:.
Impose a 60% tax rate on incomes over 10 million and a 50% tax rate on incomes over a million.
Impose an 8% payroll tax on income over 110,000.
Tax short term capital gains and dividends the same as ordinary income.
Tax estates as ordinary income.
Means testing raises 100 billion
Miliary cuts raise 300
Agriculture cuts 50
Income tax increases 200
Payroll tax increase 100
Capital gains, div,estate 200
interest savings 50
Total 1 Trillion
When your debts are denominated in your own currency that is not backed by physical gold or anything else; when this currency is the world's reserve currency and even when you lower the rates to almost 0% governments and people still buy your bonds; when you can print as much of that currency as you need --- why balance the budget at all?
The reasons to balance the budget rather than just printing money are inflation and the growth of the debt versus the growth of the economy. If debt grows too fast for too long either interest rates skyrocket or inflation does.
Let's see your proposals. NAME the programs you want eliminated or cut.
Someone who makes 10 million a year can easily pay more than 37%.
Not all farmers are rich but the ones who are don't need subsidies.