Monday, November 15, 2010

Today I Balanced the Budget

I didn't have a very productive writing day, but I did manage to solve the country's budget deficit problem:

My solution was 65% spending cuts and 35% tax increases. I cut unnecessary defense budget items, capped medicare growth and taxed people who could afford it.  Heck, I even managed to get a half trillion dollar surplus by 2015 and a trillion and a half dollar surplus by 2030.

Your welcome, America.


Sam said...

yeah, basic regression to the mean on the economy, stopping killing people, and keeping medical inflation to a vaguely reasonable level fixes all of our budget problems. Too bad we can't get that done. Fun calculator though.

Robert Sievers said...

Well, I don't necessarily agree that raising tax rates results in a growth of income. However, I do admire your desire to get most of the shortfull by spending cuts.

Dan, you and I should run the country. If we both agree on an issue, it must be right!

Sam said...

we're well shy of the Laffer tipping point right now (which I agree exists, and Western Europe may be close to). Sure, taxes increases may have a contracting effect on the economy as a whole, since deficit spending is stimulative (which is why we need a bigger deficit, not a smaller one right now), but marginal tax increases increase revenue, and marginal tax decreases decrease revenue, as can be seen both after the Clinton and Bush 1 tax increases and the Bush 2 tax decreases (notice what happened to the deficit in both cases). Anyway, here's a link.

Dan, I wondered if you had thoughts on this:

Dan S said...

I had not seen that discussion Sam. I'll have to go over there...