Debt Reduction - The Real Numbers

This data is based on the CBO 2011 Budget Projections

To balance the budget in 10 years (2012 to 2021) without raising revenues (taxes) we will need to cut outlays (spending) by 15.14% over the eight year period.

• CBO projects total revenues (taxes) to be 39,084 billion (39.084 trillion)
• CBO projects total outlays (spending) to be 46,055 billion (46.055 trillion)
• CBO projects the total deficit to be 6,971 billion (6.971 trillion)

The 15.14% reduction is calculated by taking the total projected debt divided by the projected total outlays: 6,971 billion / 46,055 billion = 15.14%

If you subtract the total projected debt from the the projected total outlays, this will equal the projects total revenues, and we will be in balance: 46,055 billion - 6,971 billion = 39,084 billion

The 15.14% is annualized over the 10 years, starting in 2012. Every year we do not cut outlays by at least 15.14%, we increase the amount the percentage of outlays that need to be cut in the following years.

		Actual,												2012-
		2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2021
GDP		14,513	15,034	15,693	16,400	17,258	18,195	19,141	20,033	20,935	21,856	22,817	23,810	196,138
Total Revenues		2,162	2,228	2,555	3,090	3,442	3,651	3,832	4,075	4,275	4,489	4,712	4,963	39,084
Total Outlays		3,456	3,708	3,655	3,794	3,975	4,202	4,491	4,691	4,885	5,185	5,451	5,726	46,055
		_____	_____	_____	____	____	____	____	____	____	____	____	____	____
	Total Deficit	-1,294	-1,480	-1,100	-704	-533	-551	-659	-617	-610	-696	-739	-763	-6,971

How to fix the nation debt

1. The plan has to save money now, not in the future. The current congress needs to pass a budget that reduces the debt during their session. Future saving are just an allusion. The saving can be changed by future congress.

2. Return to 2006 spending levels, increase taxes to level to balance the budget.