Why Reducing the US Deficit Requires Massive Spending Cuts
The US budget deficit is a pressing issue, and Congress is looking for ways to reduce it while avoiding tax increases, defense spending, Social Security, and Medicare. It’s a daunting task, but Republicans have proposed a range of areas to cut spending.
According to the Committee for a Responsible Federal Budget (CRFB), balancing the budget over the next decade would require some massive cuts. If tax increases, defense spending, Social Security, and Medicare remain off the table, 78% of spending would have to be cut. This would mean eliminating almost all of government other than the military and programs specifically for middle class seniors.
To close the gap between now and 2033 would require $16 trillion in spending cuts – the same size as all of Social Security, or all of Medicare plus every anti-poverty program. This means other programs such as visiting national parks and accessing food assistance programs would have to be on the cutting block.
House Republicans have floated a number of areas in which they would support cutting spending in a potential debt ceiling deal. These include environmental programs and federal student-debt relief plans. The Republican Study Committee also released a blueprint to balance the budget in seven years, which included making Trump’s tax cuts permanent and ensuring Social Security’s solvency by gradually raising the retirement age.
Still, House Speaker Kevin McCarthy has vowed that cuts to Social Security and Medicare are off the table. While Trump has joined him in this stance, some GOP lawmakers have reportedly been discussing changes to the programs, such as an increase in the retirement age to 70.
To reduce the deficit without resorting to drastic cuts, the government could look at measures like putting caps on appropriations spending, reducing healthcare spending, restoring solvency to major funds, and tax reforms.
It is unclear what exactly Republicans will push for in a final deal, but one thing is certain: it will require a delicate balance between reducing spending and protecting the programs that are essential to the American people.
