The national debt is at a record $14 trillion and increases by $2.8 million per minute and $49,000 million every second. While that is the “official” debt reported by the U.S. Treasury, the real national debt, including unfunded obligations, is estimated at $130 trillion, so the problem is even worse than taxpayers imagine.
The following proposals are intended to help save America from bankruptcy and prevent the outcome that is forecast in the Chinese Professor ad. This list will be updates as new plans emerge.
CAGW’s Prime Cuts addresses the spending addiction that has plagued the federal government. The 691 recommendations provided by CAGW would save taxpayers $391.9 billion in the first year and $1.8 trillion over five years. CAGW’s Prime Cuts can serve as a blueprint to cut government spending and put the nation on a path toward fiscal sanity. Prime Cuts is essential reading for taxpayers, the media, and legislators alike.
CAGW’s Critical Waste Issues
This publication is a summary of some of the most important proposals included in Prime Cuts report in which the government could immediately save money.
On March 29, 2012 the House of Representatives passed a budget that aims to provide a list of solutions to the looming problems of public spending and debt. According to the Congressional Budget Office, the budget would cause federal discretionary spending (excluding interest payments) to decline from 12.5 percent of GDP in 2011 to 5.75 percent in 2030. The federal budget deficit would hover at “around 1 percent of GDP in the 2020s and would decline further after 2030.”
On January 7, 2011, Rep. Kevin Brady (R-Texas) released a list of 47 federal programs for reduction or elimination. The list is a combination of Fiscal Commission recommendations and previous recommendations by Presidents Bush and Obama. Rep. Brady’s plan would reduce federal spending by $42 billion in one year and $152 billion over five years.
Rep. Jim Jordan (R-Ohio), chairman of the Republican Study Committee (RSC) , Rep. Scott Garrett (R-N.J.) , chairman of the RSC Budget and Spending Task Force, and Sen. Jim DeMint (R-S.C.) have introduced the Spending Reduction Act, which would save taxpayers $2.5 trillion over the next 10 years. It would reduce current spending levels for certain areas of spending back to fiscal year 2006, repeal unspent funds from the stimulus program, shrink the size of the federal workforce, and reduce or eliminate more than 100 programs
Brian M. Riedl, the Grover M. Hermann Research Fellow in Federal Budgetary Affairs at the Heritage Foundation, compiled a list of $343 billion in discretionary spending cuts. They would decrease the deficit by several hundred billion dollars.
Cato’s Downsizing Government Project and Balanced Budget Plan
The Cato Institute’s Downsizing Government Project and Balanced Budget Plan aims to reduce the size and scope of government by cutting government spending to 18.5 percent of GDP (down from 25 percent today) by 2020. These cuts would save the federal government $470 billion annually by 2020 and would reduce the federal debt from a peak of 71 percent of GDP in 2014 to 60 percent in 2020.