Make Your Own Deficit-Reduction Plan
December 29th, 2012 at 7:00 am by David FarrarThe 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.
December 29th, 2012 at 8:57 am
We need a tool like this to assist Bill English/Cullen of the blue/red party (or the stay in power at all costs party). We may be able to give some suggestions e.g. Stop using my hard earned tax money to give people to buy piss then attack cops? Just sayin
Vote:December 29th, 2012 at 9:05 am
Obama is determined to wreck the US economy. The Kenyan is doing his work.
Vote:December 29th, 2012 at 9:33 am
Where’s the option to trim military spending to the global average of 2.5% of GDP? That ought to save the best part of a trillion dollars a year right there.
Vote:December 29th, 2012 at 9:39 am
I agree with Manolo. Obama is the “mother of all softcocks”. He has as much backbone as a jellyfish.
Vote:December 29th, 2012 at 9:41 am
That should read half a trillion, my mistake. It’s worth noting that this would still be twice what New Zealand spends and also still more than China spends as a proportion of GDP
Vote:December 29th, 2012 at 10:21 am
That would be disastrous.
So long as US military spending and power is way out in front of other countries, the world is a more peaceful and prosperous place.
Vote:December 29th, 2012 at 11:25 am
US military spending would still be more that three times the next closest competitor. Regan left office a long time ago and the Cold War has long since been won
Vote:December 29th, 2012 at 11:38 am
If you know what China spends on the military you are doing better than the rest of the world.
Vote:December 29th, 2012 at 12:09 pm
It doesn’t matter if it’s three times, twice or even equal. The reason US military spending got so high was because policy during the cold war was to play economic chicken (in the form of military spending) with the Soviets. Well, it worked. The problem is that the US never stopped playing. And given that the Chinese economy is poised to overtake the US, using the same tactic on them might not be so wise
Vote:December 29th, 2012 at 2:37 pm
Very simple. Send Russel Norman to the States. He will tax the hell out of the Americans like he is about to do for Kiwis in 2014.
Vote:December 29th, 2012 at 4:24 pm
Bush’s “temporary” tax cuts lead to absolutely pathetic job growth while also severely weakening the fiscal position of the country for the next decade and beyond. I’m glad they’re almost finally over and done with.
President Took office Jobs at start Jobs at end Change Pct. change
Vote:Clinton 1/20/1993 109,726,000 132,466,000 22,740,000 20.7%
Bush 1/20/2001 132,466,000 133,561,000 1,095,000 0.8%
December 29th, 2012 at 7:42 pm
Why am I not surprised. Mainly because it comes from the same guy that peddles a GST increase as a tax cut we should all be proud of. Reducing deductions is the same as a tax increase David, you are still stealing real money out of productive people to feed a hungry state. Starve the beast instead.
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