A multi faceted approach is needed - one that addresses IMMEDIATE needs and one that addresses long term debt resolution.
First - immediate need. Congress has for years approved, automatically debt ceiling increases NEVER was this an issue until Obama became President. We need to get away from the debt ceiling fights but this requires IMMEDIATE monies not savings over a decade. So, Immediately end the wars in Iraq and Afpakistan and raise revenues to end the constant fighting over the debt. Bring the current wars back into the budget instead of off the books.
Long term - across the board cuts of 3% for next year and 2% the year after.
Let the Bush tax cuts expire as they were LEGISLATED TO DO.
Means testing for Medicare/caid.
Increase the level of income that is taxed for Soc Sec from it's
current cap to $500K. Ramp up eligibility age from 65 to 67 and eventually to 70 for Soc Sec.
Institute a tax on financial transactions to include stock purchases. One quarter percent on the seller side and one quarter percent on the buyers side. Disallow the hiding of monies overseas. Eliminate the carry over tax deductions.
Change the corporate tax. Reduce it to 16%. Then, for every 7500 jobs that a company brigs back to the U.S., from overseas - give that company an additional 1% reduction. So a company that brings in 15,000 jobs their corporate tax is 14%.
If this works - then, and ONLY then should unemployment extensions be eliminated.
Eliminate the Depts of Education and Commerce and use the savings to give block grant monies to states for education and commerce.
Combine EPA and Dept of Labor and call it the Dept of Development.
Then streamline the tax code with a cap on deduction amounts for all filers.
Require that the government operate at a profit with all extra monies going to debt reduction. Once debt is below 7% of GDP then balance the budget using revenue reductions ONLY (tax cuts). Then for future budgets - any spending must be paid for in the CURRENT fiscal year and any revenue reductions must be accompanied by an equal spending reduction
None of this will happen of course as both parties love to cut taxes and all have the pet projects they will not cut.....
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