Increased taxes and reduced spending. Isn't that what's needed to getour debt under control? According to the CBO, we'll hit a recession in the near term (1 year) and have better growth after that. Both R and D think it's going to be a huge crisis if we don't do something (and they've sold their constituents on that too).
Slashing spending is absolutely necessary. However, tax revenues don't need to be increased as the govt taxes too much already. What the govt can do is balance budget while selling off its 70-90% of its weapons and land to the highest bidder. Some of that can be used for spending, but the majority will be used to pay off most of the debt. The debt owed to the Fed can be repudiated, so the debt isn't quite $16Tn. The U.S. gov is owed by countries it also owes if I'm not mistaken so that can be cancelled out. Then, some of the leftover debt to them can be repudiated. Finally, the internal debt held by the public can be partially repudiated (not all, maybe 1/3). The intragovernmental debt may not be debt depending on who is asked and what is done.
Here is how the FY2014 budget should be balanced immediately if no parts of the U.S. Federal Constitution can be repealed:
Taxes on gold and silver repealed. Max CG tax rate reduced to 12%
The marginal tax rate for all businesses reduced to 15% (eliminate all deductions for the health care of the currently employed) and a $200k exemption so that small businesses pay nothing and don't even have to file. New firms will set up shop here and America will be competitive again. Repeal of Federal min wage and all other Federal labor laws.
All current tax cuts extended, unless listed otherwise.
Allow those less than 28 years of age to opt of SS. Reduce SS tax rate for employers to 4.2% as it is for employees.
Bottom marginal income tax rate reduced to 5%, with the 15% bracket becoming 10%, the 25% rate reduced to 20%, then the top marginal rate is 24%. The 20% bracket can be slightly compressed from what it was when it was 25% (to partially offset lost revenue) and the top marginal rate of 24% could start at 325K of taxable income. Repeal all Obamacare taxes (and expenditures). Self employment expenses remain deductable, except for current employee health care plans. Up to $60k in personal shelter expenses deductable.
Repeal of the AMT, all arms taxes, import quotas, Dodd Frank, and SOX (repeal of only the former two would reduce revenue)
Export of raw materials (except gold and silver), fruits, meat, and natural resources taxed at 10% and tax on all imported manufactured items @ 6.25%.
Reduce gas tax to 11.1 cent per gallon and tax sports tickets at $100.
Federal weapons and land sales will cover lost revenue, if any is lost.
Now for expenditure reduction:
Reduce maximum personal social security check to 1.85k/mo and freeze it there for 3 years.
Medicare user fees increased for the wealthy as income tax (2/3 of non-SS income, $30k exemption). Make it easier to opt out of medicare and repeal penalty for not registering.
Patents repealed on pharmaceuticals and none other than generic and imported drugs used for Part D.
Pay down most of the debt immediately and repudiate the rest so no more interest has to be paid.
Reduce military spending to $125Bn (based on FY 2011 USD) and freeze it there by closing all bases on foreign soil, no new research, and by closing 2/3 of the bases here. The VA dept and veteran's pensions can be increased by $100Bn.
Freezing of federal retirees' pensions (except for those laid off, see [1]) at FY2006 levels.
Reduce State, Treasury/IRS, and Justice Depts to not total more than 1/4 of FY2012 total levels. DoJ can be reduced by freeing all non violent drug offenders, no drug raids, and executive pardon of all federal defendants. Treasury can be reduced by simplified tax code, reducing IRS employees, and reduce prosecution.
FDA reduced to FY1995 level (non inflation adjusted) by just offering recommendations (no enforcement), Exec pardon of the Amish (and all others) who sold raw milk. Reduction by issuing fewer tests, employee layoffs, and a compensation cap of $75k.
EPA reduced to FY1995 level (non inflation adjusted) by just offering recommendations, opinions, and no enforcement.
Depts. of Edu, Transportation, Energy, HUD, and Agriculture abolished. $25Bn in pensions to those let go [1]. Ownership transferred to current tenants of HUD.
Unemployment reduction to not more than 1/2 of what it was the previous year, in inflation adj dollars (possibly through block grants).
Medicaid and SCHIP expenditures reduced to 1/2 (inflation non-adjusted dollars) of FY2011, changed to discretionary spending.
WIC reduced to 1/3, because breast feeding is best for 8 months of so of life. Not covering milk for those younger than 8 months would likely raise the IQ of many of those dependent on WIC anyway. Changed to discretionary spending.
TSA abolished. DoHS abolished. Presidential and Congressional salary reduced to $40k and Secret Service cut back. Compensation for capital police reduced to 4/5 of what it was the fiscal year before.
Export Import Bank abolished.
FCC abolished.
Health and Human Resources reduced to FY2006 levels (inflation non-adjusted).
I'm estimating that would cost not less than $1.9Tn (in FY2011 USD) and not more than $2.2Tn (in Fiscal Year 2011 USD). Of course, it's not perfect, but restoration of civil liberties at home, the restoration of States' Rights, cutting out the empire, cutting out the corporation welfare, and reduction of the bloated bureaucrazy is not only reasonable, it's absolutely necessary to do so now.