Big cuts in government spending would be phased in over a decade. Thousands of programs — the Park Service, Internal Revenue Service and Labor Department accounts among them — could be trimmed to levels last seen years ago.
No Social Security or Medicare benefits would be cut, but the programs could be scoured for other savings. Taxes would be unlikely to rise.
Meanwhile John Stossel says that he can balance the budget next year. His proposals are too radical to pass, but I think they form a decent starting point to allow the tea party movement to point to specific things we would support. Here are some highlights from his web site along with specifics.
- Reduce Social Security outlays as follows ($85.7 billion per year)
- Raise the normal retirement age
- Cut Social Security disability program by 10%
- Means test social security $170 billion per year
- Eliminate Department of Education $106 billion per year.
- Medicare/Medicaid reform $441 billion annually
- Make medicaid a matching block grant program that caps the amount a state receives.
- Eliminate Dept of Transportation - $84.8 billion
- Cut defense spending by 2/3 - $475 billion (Yes, I am opposed to such a deep cut in defense, but in fairness, we should acknowledge that it is a big part of the budget.)
- Cut federal civilian compensation costs by 10% - $29.6 billion
- Eliminate Fannie/Freddie Subsidies - $14 billion