Cutting federal spending is a necessity if the U.S. is going to avoid descending into a debt crisis. Spending one percent less on the federal government for five years will allow the budget to balance and stay that way. It’s a sensible approach that will put the nation’s fiscal house in order.
Reducing federal spending by one percent per year for five years will have a negative impact on the economy and the government’s ability to meet its obligations. Rather than cutting spending, a tax increase could bring in more revenue to help reduce the deficit and the national debt.