Can the Federal Budget Be Balanced?
Can the U.S. federal budget be balanced? It is obviously physically possible to balance the budget by either lowering spending, raising taxes, or a bit of both. But can the budget be balanced in a manner that is fiscally prudent while maintaining adequate funding for the government’s most important operations? I have attempted to balance the 2008 budget below while obeying the following constraints: • No tax increases • No spending shifts between departments, only spending cuts • All spending, including entitlements spending, is fair game The actual federal deficit for 2008 was $459 Billion, which forms the goal for the cost cutting exercise outlined in the table below [1]. Category 2008 Spending ($Billions) Proposed Cuts Proposed Spending Defense 612 Cut by $150 Billion, maintaining U.S. defense spending at a level that exceeds the entire World excluding NATO. [2] 462 Social Security 612 Phase out social security benefits for upper income seniors, cutting roughly $110 Billion annually
