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Budget Hero: Take a crack at balancing the federal budget

Posted Jun 12 2008, 04:49 PM by Karen Datko
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Adjusting your household budget to cover the higher price of gas can be tricky enough. Imagine having to balance the deficit-ridden federal budget. You can give it a whack at American Public Media's Budget Hero.

It's fun, it's interactive, and it has really cool sound effects. Nothing like hearing the glass shattering when the budget you devise is out of control.

American Public Media is the outfit that brings us such public radio favorites as "Marketplace" (which recently featured an interview with our culinary hero, the 99 Cent Chef) and "A Prairie Home Companion."

Budget Hero is easy to use. You click on budget categories like defense, health care, Social Security, taxes and the like, and then pick the items you want to cut from or add to the federal budget. You can read an explanation of the implications of your budget decisions before you choose. Once you're done, you can see if your budget is balanced and sustainable.

Kevin at No Debt Plan gave it a try and explained his policy choices. Here is a small sample of his remarks:

Increase Social Security taxes for the wealthy (a revenue boost of $536 billion). "One of the things that really annoys me is that Social Security tax is only taken out of the first $102,000 worth of earnings," Kevin writes.

End tax breaks for big oil ($14 billion in additional revenue). He says, "Tell me again why huge oil companies earning billions of dollars a year in profit should get tax breaks?"

Lest you think Kevin is a tax-and-spend kind of guy, he also wants to end pork-barrel spending, and reduce foreign aid, military spending and farm subsidies. When Kevin got done with the budget, it was leaner, meaner and had a $743 billion surplus. 

Comments

 

I'd also like to note this is what I would do in the context of the game. Truly I'd like us to scrap the current tax code (and spending bills) completely and start over.

Kevin, exactly...I kept looking on the taxes for eliminate the income tax, shrink the IRS to a tiny organization, allow the states to administer the federal sales tax (for a fee, so the states get money). I also think it would be nice to set up percentages for each major department, ie department of defense gets 10% of the Federal Budget, and what they don't spend they can save (in a true lockbox) to finance their own big budget acquisitions. Same with other agencies and we might actually see efficient government.

The budget hero is right on.  Education is the only thing that will work.  Candidates will continue to avoid the hard choices as long as they feel an uneducated public will trash them if they propose real solutions.  People need to know that most of our federal spending goes to entitlements like medicare and social security or the military.  

Politicians who only talk about cutting some pork or raising taxes only on the rich are just not being honest.  But they are giving people what they want to hear, which is easy fixes. 

Taxes need to be on the table and people should have a better understanding of what their tax dollars actually buy.  Spending cuts also need to be on the table, but will be useless unless defense and entitlements are part of the conversation.

As I wrote today on my news blog, "There is little that any individual can do about the national debt.  But we should all be concerned about it because the hard decisions that will have to be made will affect all of us."

Politicians won't address this until voters demand real action, not window dressing solutions that only serve to mask the real magnitude of our dilemma.  

You can find the entire story at current.pic.tv/.../an-inconvenient-debt 

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