You are an adviser to the President tasked with cutting at least $300 billion from the budget. The president wants your recommendations to cut lines, not large categories. Explain why you chose those cuts.
Note: These are not true US budget numbers.
DOMESTIC PROGRAMS AND FOREIGN AID
Cut some foreign aid to African countries
$17 billion
Eliminate farm subsidies
$14 billion
Cut pay of civilian federal workers by 5 percent
$14 billion
Reduce the overall federal workforce by 10%
$12 billion
Cut aid to states by 5%
$29 billion
MILITARY
Cut the number of nuclear warheads, and end the “Star Wars” missile defense program
$19 billion
Reduce military to pre-Iraq War size and further reduce troops in Asia and Europe
$25 billion
Cancel or delay some weapons programs
$19 billion
HEALTHCARE
Enact medical malpractice reform by reducing the chances of large malpractice verdicts
$ 8 billion
Increase the Medicare eligibility age to 68
$ 8 billion
Raise the Social Security retirement age to 68.
$ 13 billion
EXISTING TAXES
Return the estate tax to Clinton-era levels, passing on an estate worth more than $1 million to their heirs would have portions of those estates taxed.
$ 50 billion
End tax cuts for income above $250,000 a year
$ 54 billion
End tax cuts for income below $250,000 a year
$ 172 billion
Payroll tax increase for people making over $106,000 annually contributing more to Social Security and Medicare.
$ 50 billion
NEW TAXES
Institute a Millionaire’s tax on income above $1 million
$ 50 billion
Add a national 5% sales tax
$ 41 billion
Add a tax on carbon emissions
$ 40 billion
Tax banks based on their sizes and the amount of risk they take.
$ 73 billion
Total gap covered by your budget plan
$_________________
Use evidence (cite sources) to support your response from assigned readings or online lessons, and at least one outside scholarly source.
#OPTION#2
My recommendations for budget cuts would be as follows:
1. From Domestic Programs and Foreign Aid: Cut some foreign aid to African countries totaling $17 billion
2. From Military: Cut the number of nuclear warheads, and end the “Star Wars” missile defense program totaling $19 billion
3. Existing taxes: Return the estate tax to Clinton-era levels, passing on an estate worth more than $1 million to their heirs would have portions of those estates taxed, totaling $50 billion
a. End tax cuts for income above $250,000 a year totaling $54 billion
4. New Taxes: Institute a Millionaire’s tax on income above $1 million totaling $50 billion
a. Add a tax on carbon emissions totaling $40 billion
b. Tax banks based on their sizes and the amount of risk they take totaling $73 billion
The current national debt is at an all-time high. According to Magstadt (2017), the national debt hit a record in 2008 and climbed above 100% of GDP in 2012. I would start with cuts to foreign aid to African countries because “no evidence that nearly 40 years of development assistance has had an overall detrimental effect on development outcomes” (Arndt, Jones, Tarp, 2014). If the money we are spending isn’t helping to make drastic changes, why should we continue to contribute?
My next cut would be to the Military budget to end the “Star Wars” or “Star force” missile defense program. At this time, I feel that this is a program that can go back to the back burner until we have decreased Earth’s defense needs. “With the 2020 Pentagon budget expected to be flat at best, the industry has to worry about defense officials borrowing from other areas to fund Space Force start-up costs” (Erwin, 2018).
From Existing taxes, I would opt to cut the Return the estate tax to Clinton-era levels, passing on an estate worth more than $1 million to their heirs would have portions of those estates taxed and to end tax cuts for income above $250,000 a year. I chose these because this would cause the rich to pay more in taxes which would likely help to narrow the gap between the classes. “Tax loopholes allow the super-rich to avoid paying millions of dollars in income tax every year” (Magstadt, 2017). These cuts would help to eliminate these loopholes.
Finally, I would make cuts from New Taxes. I would cut Institute a millionaire’s tax on income above $1 million, add a tax on carbon emissions and to tax banks based on their sizes and the amount of risk they take. “The US compared to many other countries actually has a low rate of taxes we pay. So maybe increasing that we could help to keep more important programs and with increasing taxes on banks especially with the risk they take, this could help to prevent another crisis like the one in 2008 by making them accountable for their actions” (Magstadt, 2017).
These cuts would again help with economic inequality by decreasing loopholes that favor the rich over the middle class and poor.
The total amount of cuts would equal $303 billion.
References
Magstadt, Thomas. (2017). Understanding politics: Ideas, institutions, and issues (12th ed.) Boston, MA: Cengage Learning
Ardnt, C., Jones, S., & Tarp, F. (2014). Assessing Foreign Aid’s Long-Run Contribution to Growth and Development. Retrieved from https://www.sciencedirect.com/science/article/pii/S0305750X13003008?via%3Dihub
Erwin, S. (2018). Looming budget crunch puts DoD space strategy in jeopardy – SpaceNews.com. Retrieved from https://spacenews.com/looming-budget-crunch-puts-dod-space-strategy-in-jeopardy/