I have a simple proposal: Balance the budget by 2022 come hell or high water

In what amounts to baby steps, Obama Said to Seek $150 Billion Defense Cuts Beyond Gates�s Plan

President Barack Obama, as part of his plan to reduce the nation�s long-term debt, will propose cutting $400 billion from the Pentagon�s budget through the 2023 fiscal year, extending cuts beyond those sought by Defense Secretary Robert Gates, a person familiar with the plan said.

Gates met with Obama and Vice President Joe Biden in the Oval Office yesterday afternoon to discuss the president�s plan. Gates proposed in January cutting $78 billion from defense spending over five years, amid pressure to curb trillion-dollar federal deficits. The planned $400 billion in cuts would be spread out through fiscal 2023.

Obama will outline reductions in entitlement spending and increased taxes on the wealthy while seeking to draw a sharp contrast with Republican proposals, according to another person familiar with the plan. He�ll draw on the findings of the Simpson-Bowles debt commission, including overhauling the tax code to bring in more revenue, and proposals he has already set out in his 2012 budget.

What is the Goal?

Proposals are flying, but do we have a goal? If so what is it?

Right now Democrats, Republicans, and the president are playing tiddly-winks for political points.

Before we can talk about cuts, there must be a goal in mind. I have a simple proposal: Balance the budget by 2022 come hell or high water.

In regards to military spending, cutting 400 billion over 12 years is barely a start. I think we should cut $200 billion a year minimum over 12 years, a total savings of $2.4 trillion dollars.

Look at it this way: If we take all of the cuts the Ryan has proposed and all of the cuts the administration has proposed, we are still not there. However, if we add them together, then kill the department of energy and the department of education, and cut still more from the defense budget, we might have a solid chance at balancing the budget in 10-12 years.

In other words we need more defense cuts + some of Rand Paul's ideas + some of Paul Ryan's ideas + some of Obama's ideas.

We will not get anywhere without a goal. So the first thing we should do is set one.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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