The reason we have debt is because we submit a huge budget to congress and they bicker over how much to raise it. This is the wrong way to go about it.

The first thing that should happen is that social security should be split off. This ponzi scheme should always be fully funded by the contributions people make and if there is a loss or benefit it should be addressed within that system. No longer can the government take the surplus and spend it on war (there is no longer a surplus by the way).

The second thing to do is to flag what parts of the government represent fixed income support – disability payments, welfare, etc. The GAO should provide an estimate on population growth and adjust it but per capita spending should remain the same and even frozen for cost of living while the budget is reformed. Billions for section 8 housing however, should immediately be defunded or at a minimum frozen this is one of the most destructive programs ever created.

The major parts of the rest of the budget should be organized into major groups – defense, CIA, Homeland shove my fist up your ass Security, Tanks for Small Cities, FBI, and the tiny part of government that isn’t about harrassing Americans. All the parts will be assigned a percentage budget based on todays budget and total 75%. 25% will be slated for debt service / repayment and all interest on the debt. Interest on the debt is currently 20% of revenue.

The members of congress should randomly be assigned a vote order. Each person gets to MOVE ONE PERCENT of budget from one department to another. At the end of this process each department budget is given to the department heads for a detailed budget and approved ONLY IF THEY HAVE ACCURATE ACCOUNTING SYSTEMS. No more black box budgeting.

How would this work out with the 2014 budget?

Off Table: Social Security

Social Security 921 billion
Social Security Revenue – 920 billion. Take it off table and separate. If there ever is a gap, social security charges for employers and ees need to increase.

Untouchable: Entitlement Healthcare
Healthcare for Welfare and Seniors: 936 billion

Untouchable: Entitlement Welfare: 400 billion

Debt Service: 20% = 222 billion
Debt Repayment 5% = 50 billion
Now this really isn’t enough but hopefully can pay down the debt in 25-30 years which is about as long as we should go on any planned program. The one advantage to doing this is as the debt service is paid down, interest decreases, and size of tax revenues should increase so in ten years this burden should feel less painful. Our 17 trillion dollar debt can be reduced in other ways as well, the 2 trillion held by the federal reserve can be expunged without hurting anyone, and additionally there can be a billionaire’s tax or better still a tariff for security on all those containers coming in from China. Beyond just balancing the budget balancing the trade deficits so that piles of cash dont collect offshore and end up buying up our nations treasures is important.

Total Real Revenues to be debated: 464 billion
minus debt service: 192 Billion

One Hundred Ninety Two Billion. This is the only money that should be debatable.

Ok, now lets look at some of the things we have to fund with that:

Healthcare : 37 billion (r&d and public health)
Education: 141 billion
Police Services: 30 billion
Law Courts: 30 billion
Transportation: 103 billion (40 billion federal aid to highways)
General Government: 30 billion
Research 18 billion
Farm Subsidies: 18 billion
Community Development: 34 billion
Protection of Biodiversity: 11 billion
Economic Affairs: 18 billion
Total: 375 Billion

We still have to fund defense. Currently its at 830 billion. Spending about 20% of our available budget sounds right.

Defense: 100 Billion

total: 475 billion

And now re-adjust for the money we have 475 billion into the 192 billion we actually have. That’s a conversion factor of 2.5. So lets divide everything by 2.5 and get our real starting budget. Remember members of congress can vote to transfer money in 1% increments between departments but never increase spending, that’s 2 billion dollars they can transfer with each vote. So to add another 10 billion to defense it would take five congressmen to vote the transfers, and they would have to defund other categories by that amount.

Healthcare : 14.8 (was 37 billion) (r&d and public health)
Education: 56 (was 141 billion)
Police Services: 12 (was 30 billion)
Law Courts: 12 (was 30 billion)
Transportation: 41.2 (was 103 billion (40 billion federal aid to highways)
General Government: 12 (was 30 billion
Research: 7.2 (was 18 billion
Farm Subsidies: 7.2 (was 18 billion
Community Development: 13.6 (was 34 billion
Protection of Biodiversity: 4.4 (was 11 billion
Economic Affairs: 7.2 (was 18 billion
Defense: 40 billion (was 100 billion. budgeted 820 billion in 2014 budget)

And there we have it. Forty billion for defense is all we can realistically afford. China budgets 114 billion and Russia is 67 billion. So if we reshuffle and scrimp and save we might be able to match Russia’s defense budget. We can also hunt for waste in the entitlement and welfare programs especially social security disability all recipients should have a full review AS WELL as having private investigators spot check applicants. That guy with the bad back is mowing lawns? Nail him!

The people in DC don’t want to hear that we only have 40 billion for defense. They want to keep borrowing. They also think there’s plenty of money to fund a thug force with DHS and for a tank for every small town in America. Uhm yaaah, right. Defund all of it! I would suggest that all future borrowing be repaid by the MEMBERS OF CONGRESS and the president themselves for failure to pass a balanced budget.

The are 535 members of congress and one president. That’s 536. So for each 100 billion they wish to add to the budget, that’s 186 million each, over ten years thats 2 million dollars a month at 5% interest. Well it’s their decision, somehow I bet when it’s their money NONE of them will go for it.