The One Cent Solution

In looking over all the news related to the fiscal cliff I came across this interesting solution.
The plan is very simple if the government cuts one cent out of every dollar its total spending (excluding interest payments) each year for five years, and than caps overall federal spending at 18% of national income from then on we can.
1.Reduce federal spending by $7.5 trillion over ten years.
2.Balance the budget by 2019.
Moreover instead of using inflated budget baselines to claim nonexistent spending cuts a common practice in Washington, the one cent solution calls for real cuts. Under the one cent plan, the sum of all discretionary and entitlement spending will havee to go down from one year to the next, by one percent or more.


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