Thursday, January 6, 2011

U.S. DEFICIT REDUCTION – START WITH THE OBVIOUS

President Obama, and the leaders in Congress on both sides of the isle, recognize that the U.S. is in a BAD place. The U.S., like many individuals, has spent far beyond it's ability pay. Stripped of fancy rhetoric, the U.S. is BROKE. There are many obvious steps that can be taken to reduce U.S. debt; the real question is, does Congress have the will to confront the reality the USA is broke, and do something about it. Past Congresses and Administrations stuck there heads in the sand, raised the national debt limit, and have keep spending as if there were no tomorrow. The 112th Congress can no longer pass the buck by raising the national debt limit, now set at $14.3 TRILLION dollars.

The President as well as Congress have equal responsibilities to cut spending and reduce the debt. The Federal government is the largest employer in the U.S., if not the world. The President should require that ALL Federal employees who are eligible to retire, be required to retire NOW, or else loose all government benefits. This step, requiring all eligible Federal employees to retire now, would reduce the government workforce by 12% ( savings of roughly $37 billion ) and save the government billions in future costs.

Next on the President's list should be to close all military facilities the U.S. maintains in some 150 foreign countries. The U.S. Navy and Air Force are fully capable of deploying needed forces without shore based facilities. And remember, the most effective fighting tool today, is the predator drone, controlled from Nellis AFB, Nevada. This would yield a savings in the neighborhood of $220 billion, and save billions in future costs. Vacating Iraq and Afghanistan would save another $25+ billion in annual costs.

Undocumented and illegal immigrants cost the Federal government [ vis-a-vis reimbursed benefits to States ] around $30 billion a year. By eliminating all benefits to undocumented and illegal immigrants and their offspring, including health care, schooling, and welfare, this would save the Federal and State governments, collectively, another $40+ billion a year.

Foreign aid: it is absurd for the U.S. to borrow money, to give to foreign governments whose leaders pocket it, build private mansions in safe haven counties, and leave the U.S. holding an empty bag. You don't hear much about U.S. Foreign aide except for the occasional leak. The U.S. Government intentionally obfuscates foreign aid accounting and expenditures so both Congress and the U.S. Public have no concrete idea of how many taxpayers dollars are involved, but estimates range from $22 billion to $40 billion; lets go with $25 billion, which is likely an underestimate.

Then there are the “territories”: Puerto Rico, Guam, U.S. Virgin Islands, Am. Samoa and the Northern Marianas. These tiny islands are subsidized by the U.S. Taxpayer to the tune of $10 billion a year.

The budget is within the President's purview. The President/Executive Branch prepares it, and presents the budget to Congress. If one just adds the items outlined above: roughly $360 billion, it would be one small step in the right direction to get the U.S. back on a sustainable financial track. In the event the President does not have the guts to eliminate these needless expenditures and waste from the budget, Congress should bite the bullet, not authorize funding of the 2010-2011 budget, and, at a minimum, cut the above items and amounts from the Federal budget.

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