Developing the United States government’s national budget for a fiscal year starts with an in-depth analysis of the presidential budget. The U.S. government is likely to operate in deficit if it continues spending more than it earns (Whitman Cobb, 2020). As an advisor to the president tasked with recommending budget cuts of at least $300 billion, I would focus on three main areas: reducing aid to African countries and domestics programs, abolishing obsolete programs in the military making changes to existing taxes.
My first recommendation would be to reconsider the amount spent on outdated programs that have minimal impact on the people. I would advise reducing foreign aid to African countries by $17 billion, cutting domestic aid by $29 billion, and eliminating farm subsidies totaling $14 billion. Foreign aid to African countries hinders development and has no significant progress to beneficiaries (Lyons, 2014). Domestic programs, such as the Public Health Service Commission Corps and subsidies to farmers, are obsolete to the government.
I would recommend a reduction of funding to new military programs by $44 billion. The defense department should trade quantities for quality by investing in offensive cyber and space resilience (Marri et al., 2011, p. 206). It should end the “Star Wars” missile defense program and close the United States military bases in Europe and Asia, as these bases do not protect the homeland from attacks. These measures would reduce the army’s expenditure and the government’s spending.
Finally, I would return estate taxes to Clinton-era levels and end tax cuts for income below $250,000 a year, totaling $222 billion. Consequently, the estates’ value will increase by $7 million per couple and $3.5 million per person (Burman et al., 2017, p.112). The gap between the poor and the rich would be reduced by raising taxes on wealthy Americans.
In conclusion, if the president considers all three recommendations, the total budget cut will be $326 billion, saving the United States’ economy.
References
Burman, L., Toder, E., Berger, D., & Rohaly, J. (2017). Economic and distributional effects
of tax expenditure limits. The Economics of Tax Policy, 109-144. https://doi.org/10.1093/acprof:oso/9780190619725.003.0008
Lyons, J. (2014, 13). Foreign aid is hurting, not helping sub-Saharan Africa. Le Journal
International – Archives. https://www.lejournalinternational.fr/Foreign-aid-is-hurting-not-helping-Sub-Saharan-Africa_a2085.html
Marri, A., Ahn, M., Crocco, M., Grolnick, M., Gaudelli, W., & Walker, E. (2011). Teaching the Federal Budget, National Debt, and Budget Deficit: Findings from High School Teachers. The Social Studies, 102(5), 204-210. https://doi.org/10.1080/00377996.2011.558937
Whitman Cobb, W. N. (2020). Political science today (1st ed.). Washington, DC: Sage, CQ
Press