The debt ceiling plans are all imperfect and contraversial. I have a simple solution. Retun to 2006 spending levels plus 3% inflation. This is simple, take spending EVERY account and reset them to 2006 levels, plus a 3% increase per year. Every line item of funding for every agency. Including for congress, and including federal pay. This would result in cutting total government spending to less than 3.1 trillion. A cut of over 700 billion for 2011 alone. Then continue to do this for the next 5 years. By 2016, the YEARLY savings would be over 1 trillion a year.
Simple plan. Return to 2006 budget levels plus 3% per year in growth. Continue this through 2016. By 2016, this will save us 1 trillion per year. AND it will balance the budget by 2015; with large surpluses in 2016 and beyond.
This proposal is reasonable. It is simple. CUT to 2006 plus 3% a year levels, and then cap at 3% growth per year.
Interestingly, this does not require new taxes. It does not require draconian cuts. It due not gut government. It simply sets a 3% growth rate going back to 2006 — the last year the GOP was incharge of Congress.