The Wall Street Journal has a nifty gadget to allow you to work out your own US deficit reduction plan.
In my deficit reduction plan, I have $390 billion increase in tax revenues – but all through reducing deductions – not increasing tax rates.
I leave military expenditure alone, but cut $111b from annually appropriated spending.
I trim $525b from benefits or mandatory entitlements (mainly social security).
In total I reduce the 2020 deficit from $1.1 trillion to a mere $76 billion.
Sadly I project the US will not take meaningful steps to rein in their deficit and debt. They may hit the fiscal cliff, but will then do a deal by the state of the union. And I predict the spending cuts will be incredibly small and insignificant.