Obama is unwilling to propose any reductions of federal spending. His fiscally-irresponsible proposed FY2012 budget, if enacted, would increase total federal spending, discretionary spending, obligatory spending (which has always grown on autopilot), the budget deficit, and the public debt.
Therefore, I’ve devised my own 10 proposals to significantly reduce federal spending and thus the budget deficit. This post includes only SIGNIFICANT proposals, not tiny cuts like “abolition of the US Institute of Peace”.
1) Significantly reduce federal welfare spending, by 75%, from $888 bn to no more than $222 bn per year. Welfare spending is, by far, the largest item in the federal budget. It must be radically reduced. As a first step, the $300 bn annual subsidies of single mothers should be abolished, and all welfare programs must be means-tested. Also, eligibility for a welfare program must be earned individually, not triggered by eligibility for another welfare program, and any recipient of federal welfare funds must work. (http://www.americanthinker.com/2011/03/hamilton_vs_jefferson_on_welfa.html)
2) Cut the Medicare program and the Medicaid program. You can do it without decreasing the quality of benefits, by ending fraudulent expenses. Every year, $60 bn is defrauded from the Medicaid program and $120 bn from the Medicaid program.
3) End the war on drugs, which costs $44-$57 bn per year, and tax drugs to add $33 bn every year to federal coffers.
4) Abolish the Education Department, which has only worsened the quality of American schools, and which costs $122 bn per year. Return the education issue to the states.
5) Abolish the Department of Naked Body Scanners. Its violations of the constitution and its unconstitutional programs are legion. Not only is it unable to protect the country, it also violates the civil liberties of the American people. The saving: $48 bn per year.
6) Abolish farm subsidies. The prices of the 5 agricultural products that are subsidized are not different from those that are not subsidized. The saving: $57 bn per year.
7) Drastically reduce the pay, perks, and retirement benefits of federal employees and prohibit them from organizing, i.e. make the entire Federal Government a right-to-work constitutency.
8) Abolish the DOT and return the highway program and other transportation duties back to state governments. The saving: up $77 bn.
9) Abolish costly, unnecessary regulations like the Dodd-Frank Act, the Sarbanes-Oxley Act, the Davis-Bacon Act, and the CAFE Act.
10) Increase the retirement age to 70 to halve the annual cost of the SS program, to $365 bn per annum, from $730 bn per year, and means-test that program.
Total savings: $1226 billion, i.e. $1.226 trillion.