How do you fix Budget problem?

Question

Cut spending or Raise taxes?? or both? (detail pls) Which one should be done more? How would you go by doing it if you are the governor?

Answer 1

It's certainly not an easy question or our elected leaders would have done it a long time ago. And any simple answer you hear to this question is likely riddled with problems.

One problem is that one person's "pork project" is another person's vital program, so cutting out "pork" is not as easy as it looks. There are some eggregious examples of wasteful & foolish spending every year, but most of the earmarked spending goes to projects that specific groups of constituents have clamored for. And another difficulty is the fact that these pork projects are often part of the negotiations process for major legislation. If we take away earmarked spending completely, it would be like trying to drive a car without ever giving it oil: the process would just break down & very little would get done. It doesn't make earmarked spending right or wrong: it's just important to face the realities of politics if an effective solution is to be found.

Governors have it tough: they can't print more money every time they need it, so they actually have to balance budgets. It would be a welcome change if the folks in D.C. would stop putting additional financial burdens on the states in an effort to look like they're cutting spending (ex. Medicare and No Child Left Behind.)

Solutions? We have to treat the federal budget like we would a credit card: You must not spend more than you can afford to pay or you will lose a LOT of money in the long run. Despite the economic benefits of doing so, cutting taxes without cutting an equal amount of spending is simply taxation of those not yet old enough to vote. So we need to reinstate "pay-as-you-go" rules & hold Congress accountable to those rules every election. If someone votes for a tax cut without saying how the tax cut will be paid for, replace that office holder with someone who knows how credit cards actually work.

Tax cuts are not inherently bad and government spending is not inherently bad. But spending what you can't pay IS bad. That's the part that needs to change.

Answer 2

it is simple and I live my life by it - don't spend more than you make. Something the cash crazy republicans are having trouble with. I wouldn't raise taxes, I would definately cut spending on wasteful projects.

Answer 3

sounds like you aks us, to do your homework.
Look,
most countries have their budgets in defizits. That goes all way down to disctricts and townhalls, even public shools, etc...

So, if it wouldbe so easy to answer, nobody would have problems with it.
Therefor, its a damn complicated thing, not possible to answer in few sentences. If you touch one thing, it will affect some other.
Cut expences on street maintanance, will raise expences in later repairing the damage of the streets caused by bad maintanace.....and so on.
Raising taxes results in less economic activity, that will affect income on the long run, will affect young people opening their own business, etc....not so easy as you see that issue.

Answer 4

If we stopped USELESS spending, and then kept taxes at the rate we are now, and invested some of the american money, the budget would rapidly disappear.

Answer 5

Get rid of George Bush and the repuglican congress.

Answer 6

check out Dave Ramsey's Financial Peace....it is awesome and has worked for hundreds of thousands of people that were majorly in debt, or just wanted to save money.