Tax revenues are up. But we are still overspending, a hangover from the Obama years.
So if we are 350 billion a way from balanced spending, we need to do three things:
1) Manage Entitlements. Not cut, but grow them slower, be more restrictive on who can get them (citizens only, no 14th amendment babies allowed), and really chomp down on disability fraud AND marriage fraud (used overwhelmingly by illegal Hispanic families). What is marriage fraud? Its when the husband works for cash jobs, the marriage is never declared even though he is the father and lives in the home, and their 4 children all get welfare benefits even though his income would disqualify them. Disibility fraud is just rampant. The Octomom’s baby gets disability for a lisp. Children cannot work so it is absurd that they get disability payments. Many Indian mothers have their children pretend to be autistic to get their payment. This has to stop. Set the fines for faking to be harsh and real and set cash rewards to private investigators who find fraudsters. I bet if they paid out 20k a faker found many would jump into that business!
2) Cut Defense
True defense spending when you add it up from all the agencies is well over a trillion dollars a year. The easiest thing we can do is tell nato members that they now must PAY the difference between their 0.6% of GDP they spend on defense and their 2% nato commitment TO THE USA IN CASH or they will be dropped. That will be good for a few hundred billion. We also need to start charging Saudi, Quatar, UAE all these rich middle eastern nations and ISRAEL for being under our protection. If they want it, it’s 100 B a year. EACH.
3) Cut All Foreign AID. PERIOD.
We cannot borrow money to give it away for free its that simple.
4) Cut the federal budget for other items
Cut the CIA budget at least by half. Only real field work. Cut the NSA budget for super spying mega computer centers. The electricity alone costs millions. Cut airport body scanner budgets and other ridiculous invasions of privacy. Elminate the department of Education. All other budgets are frozen until inflation at 10% a year whittles it down further. Thats still a heck of a huge government.
So when Trump says “I need 58 billion more for defense” I just do a faceplant with my palm. It means he doesn’t understand a damn thing.
Finally none of this PAYS DOWN The debt. So even if we reach budget parity, we still are in critical die at any moment financial risk, which is a much huger risk to the nation than anything else.
5) New taxes will all be funneled to pay down the debt. No you can’t grow the government with the excess all budgets must stay frozen UNTIL WE ARE OUT OF DEBT.
ONE) An alternative minimum tax on gross sales for companies which earn over 10 million a year. Maybe 5%. So big companies cannot simply run tax free they MUST contribute. Google, Facebook, Apple, IBM, GE. Its going to be good for 20B a year or more.
TWO) An alternative minimum tax on wealthy (earning > 10 million a year) individuals. Gross earnings not after deductions. The debt reduction tax should be 15%.
THREE) a “Security Fee” on all imports of 10%. 20% on hostile trading practices and 30% if they do not enforce copyright laws or use slave labor. Thats 30% on china. Will it start a trade war? Yahp. That might get some companies to start keeping their factories here in the USA and also get rid of all the cheap chinese junk from our stores, Germany doesn’t have their stores filled with all this crap they have beautiful scandanavian and italian and German made appliances, silverware, linens, etc.
That would bring in over 500 B a year to pay down the debt. It’s still 40 years of paydown, but just SHOWING that we are now paying it down would be a huge message that we are again a nation of fiscal solvency, and this would reduce OUR interest rate on bonds.
Will any of this happen? Nope. Why? Trump is an idiot. Ryan is a cuck. No one has balls in government to rock the boat.