Gene Epstein devotes his latest “Economic Beat” column in Barron’s to federal budget-cutting ideas that have a chance of winning political support.
[I]t’s time to look at long-term spending cuts that both sides might accept. Our focus is on spending cuts, not tax increases, since the tax hikes early this year on high earners probably cover most of what might be taken from the “millionaires and billionaires” who were perceived as not paying their fair share.
Using estimates mainly from the Congressional Budget Office, Barron’s has come up with a plan that could save $1.3 trillion to $1.4 trillion over the next 10 years. Add another 10% in savings on debt servicing, and that comes to total projected debt reduction over 10 years of about $1.5 trillion.
That’s not enough to solve the long-term budget crunch; the CBO projects that debt held by the public will grow to $19 trillion by 2023, from $12.2 trillion today. But it’s a start.
Our principal targets are the entitlement programs that threaten the federal government’s long-term solvency.
