Posted by Sir Four at 4:45pm May 20 '10This tool let's you take god-like control of the US federal budget. Adjust a whole bunch of parameters to try to get the national debt under 60% of GDP by 2018. Not as easy as it may sound!
I failed the mission. It wouldn't be until 2021 that debt got nder 60% of GDP in my scenario. My picks were as follows...
My main budget-buster was renewing the Bush tax cuts for those earning below $250,000/year. A nice reality check for anyone supporting those cuts. I also made Obama's Making Work Pay credit ($400/person) permanent.
To save money, I drastically reduced troop levels in Iraq and Afghanistan and stuck it to the rich and old. heh. I cut weapons programs and canceled missile defense, as well as reversed the "grow the army" initiative. I increaed the SS retirement age to 68 and Medicare age to 67 (these were the only age options). I added some progessivity to SS payments and required all government employees pay in to SS. I increased cost-sharing and premiums for Medicare, and enacted medical malpractice reform.
I cut the federal work force by 5% and cut earmarks in half. I indexed discretionary spending with inflation (the cheapest option). I charged a financial crisis responsibility fee to financial companies. I enacted cap and trade and instituted a 10 cent gasoline tax, which brought in desperately needed new revenue.
I stuck an income surtax on incomes above $1 million and a SS surtax on high-earners as well. I chose not to radically raise the SS tax cap, however.
I modified the mortgage deduction so that it doesn't give the rich as large of a deduction as it does presently, and I limited line-item deductions for high-earners. I eliminated subsidies for biofuels, but made the research and development tax credit permanent. I cut the earned income tax credit (I felt preserving the Making Work Pay credit was enough, sorry poor people). I extended the "American Opportunity" college tax credit, and I replaced the Employer Health Care Exclusion with a flat credit (instead of the excise tax currently planned in the HC reform bill).
So. These things got the debt to 60% of GDP by 2021. Had I let all of Bush's tax credits expire, I'd have had a much easier time! And of course, the tool doesn't allow for every possible option. I wish it would've let me close numerous, pointless military bases around the world.
What would you do, fellow budget gods?
I failed the mission. It wouldn't be until 2021 that debt got nder 60% of GDP in my scenario. My picks were as follows...
My main budget-buster was renewing the Bush tax cuts for those earning below $250,000/year. A nice reality check for anyone supporting those cuts. I also made Obama's Making Work Pay credit ($400/person) permanent.
To save money, I drastically reduced troop levels in Iraq and Afghanistan and stuck it to the rich and old. heh. I cut weapons programs and canceled missile defense, as well as reversed the "grow the army" initiative. I increaed the SS retirement age to 68 and Medicare age to 67 (these were the only age options). I added some progessivity to SS payments and required all government employees pay in to SS. I increased cost-sharing and premiums for Medicare, and enacted medical malpractice reform.
I cut the federal work force by 5% and cut earmarks in half. I indexed discretionary spending with inflation (the cheapest option). I charged a financial crisis responsibility fee to financial companies. I enacted cap and trade and instituted a 10 cent gasoline tax, which brought in desperately needed new revenue.
I stuck an income surtax on incomes above $1 million and a SS surtax on high-earners as well. I chose not to radically raise the SS tax cap, however.
I modified the mortgage deduction so that it doesn't give the rich as large of a deduction as it does presently, and I limited line-item deductions for high-earners. I eliminated subsidies for biofuels, but made the research and development tax credit permanent. I cut the earned income tax credit (I felt preserving the Making Work Pay credit was enough, sorry poor people). I extended the "American Opportunity" college tax credit, and I replaced the Employer Health Care Exclusion with a flat credit (instead of the excise tax currently planned in the HC reform bill).
So. These things got the debt to 60% of GDP by 2021. Had I let all of Bush's tax credits expire, I'd have had a much easier time! And of course, the tool doesn't allow for every possible option. I wish it would've let me close numerous, pointless military bases around the world.
What would you do, fellow budget gods?
Could you get US spending under control? - Sir Four