How to balance the federal budget
Balancing the federal budget is stunningly simple if we have the will to do it.
The federal government employs over 2.7 million people, excluding the military. The federal government subsidizes millions more state, county and municipal government jobs (including colleges and schools).
Collectively, all layers of government employ 27 million people, 11 percent of the adult population. By comparison, manufacturing employs under 13 million.
The average federal employee’s total compensation (salary, pension, health care, other fringe benefits) exceeds $100,000.
Firing 1 million federal workers would save $100 billion.
The average total compensation for employees at other levels of government exceeds $80,000.
Firing 5 million workers at all other levels of government would save $400 billion, for a total savings of $500 billion.
If we take 6 million people off the government payroll and they go out and start small businesses, or take the jobs that illegal aliens currently take, they will pay on the order of $50 billion in federal taxes. The Congressional Budget Deficit estimates the 2016 budget deficit at $544 billion.
Do we, as a nation, have the courage to solve this problem immediately?