Presidental Advisor discussion

The American economic system is very complicated." As a president advisor to cut the yearly budget by eliminating some lines from the broad categories is estimated at $331 trillion. 

DOMESTIC PROGRAMS AND FOREIGN AID

1) Starting with the first area that got eliminated from the list is to reduce the overall federal workforce by 10% ($12 billion). Under this line, any federal government agency won't be able to hire new employees unless their current employee numbers are at an allowable level. Moreover, only one employee can be hired for in-exchange for three retiring employees. By doing so, the congressional budget office (CBO) expects, "by 2028, the reduction in the deficit would grow to $5.3 billion as effects of reduced hiring on the size of the workforce accumulated." (Congressional Budget Office, 2018, para. 3). 

MILITARY

 1) Next in line is to exclude the military to pre-Iraq War size and further reduce troops in Asia and Europe ($ 25 billion). As by withdrawing American forces from foreign lands, it will reduce down the troop's sizes; plus the expenses United States (U.S) government is bearing to maintain their military on foreign soil. Further, the American government has requested it's allied countries and NATO (North Atlantic Treaty Organization) nations to participate in the international stage by sending their troops to the required front lines in the world to maintain world peace. 

2) Secondly, cutting the number of nuclear warheads, and end the "Star Wars" missile defense program ($ 19 billion). As this program is on from 1983 under president Reagan and the U.S. government has exhausted more than $60 billion on these missile programs. But there's still a long way to from producing a workable device to shield all 50 states from any nuclear attack. "But the main focus of the U.S. government’s energy and resources should be on preventive measures, which are far more effective at reducing the threat of nuclear war than any pie-in-the-sky defensive schemes." (Hartung & Ciarrocca, 1999, para. 24 ).   

HEALTHCARE

1) In the category of healthcare line to be eliminated is enacting medical malpractice (Tort reform) reform by reducing the chances of large malpractice verdicts ($ 8 billion). As many states like California and Texas have a cap limit of $250,000 on non-economic medical malpractice lawsuits. Under this law, a plaintiff can claim $250,000 for all damages from all clinicians; including other individualized healthcare providers. As with the cap limit set, there will be a balance of damage and suffering paid relatively as well. Further, the tort reform will limit the impractical lawsuits and will control unnecessary procedures and testing. Hence, it will lead to manage the cost of medical care. 

EXISTING TAXES

1) From the category of existing taxes is the estate tax to Clinton-era levels, passing on an estate worth more than $1 million to their heirs would have portions of those estates taxed ($ 50 billion). As these inherited wealth taxes are applicable only when a person has passed away and the property of at least a million is transferred to their heirs. "The federal estate tax is a tax on very large inheritances received by a small group of wealthy heirs. Because it only affects the heirs of the wealthiest Americans — fewer than 1 in 1,000 estates — the estate tax is the most progressive part of the tax code." (Center on Budget and Policy Priorities, 2018, para. 1). 

2) Further, following line to be eliminated in the tax cuts for income above $ 250,000 a year ($ 54 billion). As these tax cuts never expired from Bush government; and even continued with Trump tax cuts that took effect on December 2017. "When politicians cut taxes for the wealthy or corporations, they promise that the benefits will trickle down to everyone else and result in more jobs. Experience has repeatedly debunked this self-serving claim." (Stein, 2017, para, 13). Hence, with the proven history of wealth and corporate trickle-down tax plan, this tax cut should be abolished from the president budget. 

NEW TAXES

1) New taxes like millionaire’s tax on income above $ 1 million is to be added on the tax list ($ 50 billion). By increasing the tax rate on the highest earned incomes, the state government can wisely invest the revenue. As this can be further applied for the community and other social benefits including education, infrastructure and for a next "rainy day" reserve fund. 

2) Also, another add on tax is the carbon emissions tax ($ 40 billion). It encourages people, including businesses and governments, to be thoughtful of climate change due to carbon dioxide and other harmful gasses. 

3) In addition, the revenue from this tax can be efficiently applied to clean energy and other improvement projects for the climate ($ 73 billion). The last line in this category is to tax banks based on their sizes and the amount of risk they take. It is a sensible step to limit banks to borrow less money and thus, will avoid further failures of the big banks. Moreover, it will avert another episode of the financial crisis like 2008 or else the whole economy will be imposed to pay the due cost. 

Total gap covered by the budget plan: $ 331 billion.

 

References 

Congressional Budget Office. (2018). Reduce the size of the federal workforce through attrition. Retrieved from  https://www.cbo.gov/budget-options/2018/54784 (Links to an external site.)

Center on Budget and Policy Priorities (CBPP). (2018). Policy basics: The federal estate tax. Retrieved from   https://www.cbpp.org/research/federal-tax/policy-basics-the-federal-estate-tax (Links to an external site.)

 Hartung, W. D., & Ciarrocca, M. (1999). Star wars revisited: still dangerous and costly. Institute for Policy Studies. Retrieved from  https://ips-dc.org/star_wars_revisited_still_dangerous_costly/ (Links to an external site.)

Stein, H. (2017). Stop cutting taxes for corporations and the wealthy. Center of American Progress. Retrieved from  https://www.americanprogress.org/issues/economy/reports/2017/04/10/430161/stop-cutting-taxes-corporations-wealthy/ (Links to an external site.)