I can balance our budget but I don't think our lawmakers can. Here is what I purpose please give me feedback.
I think we need a balanced budget that focuses on cutting spending to a substantial level. Also once we have cut spending to these levels we need to increase revenue to levels that will not put us in a deficit. I am putting forth my idea on how to balance our nation’s budget. I will first focus on Entitlement reforms and then go on to defense and other types of spending. We need to get our country’s fiscal house in order. We need to reform Entitlement programs.
Social Security is an important safety net for our seniors and people with disabilities and the system is broken and it needs to be fixed. Social Security takes up 22 percent of our budget. Here are the ways I believe we need to fix Social Security. First we need to use a different method of calculating the COLA, the method we should use is chained CPI. Next, we must gradually raise the retirement age to 68. Most seniors are working past the age of 65 and they are living longer. Second, we must gradually reduce scheduled benefits down to 30 percent by doing this it will slow the growth of Social Security and price index most of the benefits. Also we must reduce spousal benefits from 50 to 30 percent. Also we need to increase the years used from 35 years to 40 years. Also we need to include local and state employees into the Social Security system, because some of them are exempt. We need to also increase the social security tax to 2.01 percent. This increase is needed because right now we have a 75 year shortfall that is equal to 2 percent of taxable earnings. Also we need to raise the earning cap from 106,000 to 172,000. These fixes will keep Social Security Solvent for generation after generation.
Medicare and Medicaid also are broken and need to be fixed. Medicare and Medicaid make up for 21 percent of our budget. Medicare needs a two stage reform. In the first stage we must, restructure the role of supplemental insurance, also we must gradually increase the beneficiary premiums for Medicare, and finally we must fix the taxpayer subsidies for upper income seniors once this is done then we can eliminate the subsidies for wealthy seniors. Also we must restructure the way Medicare pays hospitals, there are some hospitals that are in Violation of laws and yet they still receive funding. Also under performing hospitals need to either fix their performance reviews or stop receiving funding from Medicare. Also we need to gradually raise the eligibility age to 68 over a 10 year period. We also need to eliminate restrictions which would allow Doctors and patients to contract privately for the services.
In the second stage, we need to allow seniors to opt out of traditional Medicare for a private health insurance that allows them to go to the best doctors. Also we need to merge all parts of Medicare into one single unit, which is financed with a single premium. Another area we need to fix in Medicare is the Fee for service fee; this fee is wasteful, unproductive, and cumbersome. The reason I call this
wasteful is because it starts problems between patients and their physicians.
In order to fix Medicaid we need to first put Medicaid back into the hands of the state government’s. We need to allow the states to develop, implement and manage their own Medicaid insurances. We need to make Medicaid a temporary solution for healthcare. I think states should adopt the Oregon model. Oregon has moved all of their Medicaid patients into coordinated care organizations. This is a plan that I think will be beneficial to Doctors and patients.
I will now talk about Defense and International Security Spending. Defense and International spending are a very important part of our budget. Defense and International spending makes up 19 percent of our budget. The first area we need to focus on is how much money we send to international countries for aid. I think Foreign aid needs to be given to countries on conditional basis. We should only be giving Foreign aid to countries that share our interests and our allies’ interests. Also we need to make sure these countries are not committing any kinds of human rights or humanitarian violations. Also I think in order for us to save money we need to cut foreign aid in half. Next we need to increase our troop levels by 46,000 by 2015. We need to expand benefits to our veterans. We need to replace the Joint Strike Fighter program with f-16’s and FA 18s. Also we need to reduce our US Navy Fleets to 250. This will save us about 170 billion dollars. We need to increase Homeland Security spending to 60 billion by doing this it will allow us to secure our borders more efficiently and it will help us fight off any terrorist attacks. We need to reverse the initiative that the Army introduced in 2007 which is known as “Grow the Army”. This initiative was to increase active and reservists personnel. If we reserve this program it will save us 110 billion dollars. By following these steps we can balance out our defense budget for 10 years.
The next area I will focus on is Social and Domestic spending. These programs take up 12 percent of our budget. We need to convert SNAP benefits in to Block grants. This will save us 180 billion dollars. Also we need to limit the highway funding and increase gas taxes and increase fees for aviation security. By increasing the gas tax it will allow the government to invest in highway projects without increasing our spending. This will save us about 130 billion dollars. Next we need to cut 30 billion from TANF gradually. By doing this it will save us 30 billion. Also we need to eliminate the New Market Tax Credit. This is a wasteful tax credit. If we eliminate this it will save us 50 billion. We need to cut k-12 educational funding by 10 percent. If we do this it will save us about 50 billion. Also we need close tax loopholes and reduce our business taxes. I know that some of these cuts are drastic but they are needed to balance our budget and get our fiscal house back in order.
We also have other programs that need to be cut or reduced. I think for all civilian and federal retirement benefits and poverty related benefits we need to use chained CPI. By enacting the Chained CPI program it will allow us to save 70 billion dollars. Also we need to reduce increases in civilian pay and we need to cap increases in Military pay. We need to also cut congressional pay and benefits by 15 percent. Also their staff’s pay and benefits need to be cut. Also we must reduce farm subsidies. By doing this it will save us 100 billion.
These programs that I have listed to be cut or reduced or eliminated. Will help us balance our budget. I will now talk about increasing revenue. These increases in Revenues will help us balance our budget also. We need to raise taxes on the wealthiest Americans to 40 percent. People like Donald Trump, Ben Affleck, Beyoncé need to pay a 40 percent income tax rate for their income; furthermore, I think 5.6 percent surtax should be imposed on any income above 1 million. Also we need to raise taxes on capital gains. We need to also impose a Financial Crisis Responsibility fee. This fee will require large financial institutions to pay a fee to the taxpayers to compensate them for the TARP. This fee should be based off of the net worth of the institution and the size. We need to start making oil companies and big corporations pay taxes. Also I think we need to increase our gas tax by 10 cents per gallon. By doing this it will allow us to save 120 billion and it will allow us to reduce the use of gas and it will reduce carbon emissions drastically. We need to also cap the Child Tax Credit. Parents use this to get as much money from the IRS as possible and sometimes they use kids that don’t live with them.
My plan that I have introduced will lower our GDP to 44 percent by 2020 and keep it at a sustainable level by 2030 and beyond.