Obama's budget is out and with only a few tweaks, we can balance the budget and pump $800B back into US economy which worked great during Clinton era of no deficits when money the government borrowed went into the economy.
Great budget graphics at Washington Post
Total Deficit is $765B
Social Security runs a $129B surplus.
Defense is $647.
So we cut defense by 50% to $320. That's $120B more a year than China. No Russian or Chinese threats to US, no need for US overseas bases or troop deployments, no need to gear up for oil wars. If Pentagon wants oil war funding, we can have an "Oil War Oil Tax" on every barrel of domestic and imported oil.
Corporate income taxes are $348B. Double them (GE paid no income taxes for example).
Defense savings $320B
Corporate income tax increase $348B
Bingo...no US deficit, Social Security runs a $129B surplus so we increase SS benefits and restore 62 early/65 full retirement benefits. Let people take early retirement and keep working to help elderly get buy and to increase SS revenues.
We can let Bush tax cuts expire and collect another $300B per year, refinance NASA by $20B, spend $200B on making US more energy efficient particularly using less oil allowing us to cut defense spending equal of Russia and China combined (should be more than enough considering Europe, Japan and Korea spend as much).
Besides the $795B going into economy vs. debt, well cut the $400B per year trade deficit by cutting oil imports.
And then back to work for real health care reform which will free up another $800B per year.
Wonder why Obama didn't propose that budget as the starting point. Show how easy it is to eliminate the deficit, reduce debt, build up US economy, help retirees who lose everything in the Great Recession.
