There are three areas of our budget that take over 60% of our tax revenues. Defense, Social Security, Medicare/Medicade/CHIP. These three areas must be addressed before any reduction can truly be realized. Will this result in increased FICA contributions, higher Medicare premiums, reduction of benefits, or higher taxation for higher income retirees, a further increase in the reitrement age, and a reduction in our deployment of our military. Without addressing these areas there can be no real savings no matter how much we cut the other expenditures in the budget.
I personally shake my head when I see emails and postings about how much we spend in "foreign aid" or the salaries of the President and Congress. You could stop all "foreign aid" and stop paying our elected officials and it would make no difference in the problems we currently have. Foreign aid spending accounts for less than 2% of our annual tax revenues and the salaries of our elected officials are a minor fraction of a percent. People tend to look at things they don't like but don't realize that there are major issues that need addressing before addressing the small matters.
I do get angry when people, individuals and corporations, will scream for and demand "cuts" but scream even louder when a "cut" will effect them.
I do agree that there needs to be an overhaul of our tax system. Large Corporations need to pay more and not be as "concerned" about paying shareholders. The mentality of others setting the target earnings and if a company misses it by a small, or fraction, of a percent will send the stock price reeling. The argument that if large corporations have a small increase in taxation will result in massive job losses is BS. This is nothing but fear mongering or the mentality of rewarding large shareholders at the expense of the company and their employees. Don't get me wrong. There are corporations that have areas that are bloated with people and in many instances a reduction in force is required. However this should only be done after careful consideration and not just to raise the stock price or dividends a small percentage.
There also needs to be realistic tax increases across the board. No matter if you are making $30,000 or $30,000,000. We are demanding more without wanting to pay for it. I have been an advocate of a flat tax for many years. Would this be the answer? I don't know but it would be better than the current system.
No matter what: Hard decisions need to be made and our elected officials need to stop their childish behavior and concentrate on what's best for the country and not what's best for their re-election.