SOLVING THE DEFICIT - OVERVIEW

PART I

(1) The Growth of the National Debt from Washington to Bush

·      Ronald Reagan took the debt accumulated by the previous 39 Presidents and doubled it in 8 years.

·      Thanks to tax cuts by Reagan and Bush, tax revenues have decreased from 15.8% of
     GDP under Dwight Eisenhower to 13.0% of GDP under George W. Bush. 

·      That 2.8% of GDP decrease in tax revenues is equivalent to $403 billion in 2008 dollars.

·      Since Eisenhower was President we have added Medicare, Medicaid, income support for
      the disabled, homeland security, and the Department of Energy just to name a few. 

·      Medicare and Medicaid alone cost the Federal government $599 billion in 2008

  

(2) Budget Basics - A few things you need to know in order to understand the budget 
       and the deficit

(3) The meaning of on-budget and off-budget and why it matters

(4) Social Security - Is not a significant part of the deficit now, but it will be if we 
      don't make a few modest changes

PART II

The 2009 Deficit Deconstructed showing that:

2009 deficit = $1550 billion =  $642 billion structural deficit inherited from
                                                                      George W. Bush

                                            + $451 billion in lost tax revenues due to the recession

                                            + $409 billion increase in spending for mandatory
                                                            “safety net” programs,  also due to the recession

                                            +  $84 billion in increased in discretionary spending (the 
                                                              only part of the budget under the direct 
                                                              control of the White house.

PART III

(1) Projected Deficits  ─ 2011 Through 2021.

 

(2) 45% of the 2009 deficit was the result of lost tax revenues caused by the Regan and Bush II tax 

        cuts.

(3) An analysis of the major spending components driving the deficit

(4) The Cut-Spending Toolkit - Detailed information about Federal spending.  Conservatives who think the deficit can be eliminated without tax increases are challenged to identify where they would make their cuts.

PART IV   WHAT ABOUT TAXES?

(1) A comparison of the US tax burden with the tax burdens of other developed countries

(2) Why higher tax rates will not kill jobs or reduce US prosperity

(3) Where is the evidence that tax increases kill jobs and economic growth?  I 
         provide evidence to the contrary

PART V   ELIMINATING THE DEFICIT 

(A) Spending Cuts

(B) Tax Reform And Elimination Of Subsidies

(C) Taxes

(D) The Impact on Taxpayers

(E) The Failure of America's Leaders