US Deficit (5)
While some have been taking the mounting deficit to be a serious threat to the current status of our nation as a super economic power, others have been ignoring it with a wave of the hand.
Would we respond the same way if our personal debts are increasing every month?
One way of looking at addressing this deficit is to balance our budget – but hey, any one can do it, right?
So, what is more important?
We need to put a limit on our monthly expenditure!
Limiting our expenditure becomes very essential when we are not able to identify avenues to increase our revenues.
That’s what the government also needs to do now – put a upper ceiling on the amount of spendings.
In fact a better thing to do would be to plan for decreasing expenditure, rather than fixing it at some figure and continuing to maintain it there.
Imagine what is possible, if the government could pay off the current debts while gradually reduce the pay outs – in a couple of years, we will be able to nullify the deficit and be able to build surplus as well, if we continue beyond it
While this is a definite option available, and one which can also practically implemented, there could be other possibilities people have been suggesting.
Like, for instance, removing the $90 ceiling now in order to guarantee social security benefits for generations to come.
Some others have also been suggesting removal of the payment of benefits to anyone who doesn’t contribute to social security.
While increasing the pay-ins to social security trust fund is also suggested, a clear plan of implementation to repay all the surpluses due to social security over the next 20 to 25 years also has been suggested.
As a preview to a complete overhaul of the current tax system, I invite you to download my report “Done with Cash” for free, when you apply for it.
Tags: Banking Crisis, Corney's Model, Financial Crisis, Geithner, IRS, Stimulus Bill, Taxes
