The Real Facts About Debt Reduction And A Commom Sense Solution

There is a great deal of talk about how good it will be to cut up to $4 trillion ( they are talking $3 Trillion) from our debt over 10 years.  There are facts nobody is telling you. Let us assume the cuts will be applied evenly over four years. ( and they won’t they are scheduled to be heavily back loaded). The facts are:

  • That averages $400 billion dollars a year off spending
  • We are currently over spending by $1.65 trillion a year.
  • That means we will continue to overspend by about $1.25 trillion dollars annually
  • The debt will continue to rise and debt ceiling will continue to have to be raised. Are you aware the Government does not do a Zero Based Budget  development?

The Government does not do an annual Zero Based Budget Analysis. Instead they simply add an average of 7 1/2% to each Department for the next year. Think of it, Deficit spending will automatically increase by 7 1/2 %% annually. In fact if a department does not spend it all, they get credit for cutting their budget. Now you understand the need for a Department to use all it’s allotted money. They will get an increase next year.

How do we fix this?

  • Force each Federal Agency to justify the expenditures for a year. That includes personnel and supplies. That way you can identify waste
  • Freeze the Budget for 5-8 years. Notice we are not cutting them but we are forcing them to live within their means. Eventually as money becomes tight, they will get rid of marginal personal and expenditures.
  • Establish an independent Board to review any special requests for additional funds that are due to unexpected changes in mission.
  • Force a Balanced Budget Constitutional Amendment through Congress for the  States to pass. Have it take effect after the freeze.
  • Make the necessary changes to Social Security by slowly raising the age to 70
  • Eliminate Obama Care  ( a major cost in future deficits) Replace with common sense laws to help the uninsured. This would also help control the rise in Medicare costs.
  • Pass a new tax code that eliminates all deductions. This would increase revenue and still lower the rate people pay. Also every one pays something. If the lowest rate is 3% that means everyone has some reason to watch government spending. Other rates could rise from 3 to a maximum of 17%
  • Eliminate Departments or Programs that do not work or are duplicates of other programs.
  • Pass a Constitutional Amendment that puts term limits on Congress. Senators no more than 2 terms, Congressmen. no more than 3 terms.
  • This would help in making sure people vote on what is good for the Nation , not what is good for their re-election.

2012 is coming!!!!!!


About billmoore353

Retired LTC- USAR Former HS Principal- John A. Holmes HS in Edenton, NC Former HS Principal- Roosevelt HS in Yonkers, NY
This entry was posted in Budget, Politics, TAXES, Uncategorized. Bookmark the permalink.

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