Worthwhile Read This Morning on Reducing the Deficit...

Economic journalist and financial strategist Barry Ritholz has a great article up on his Big Picture Blog this morning where he discusses how we can reduce our deficit and questions some of the loudest voices real intentions/motivations.

An excerpt:

If you are truly concerned about deficit, then what you must do is (eventually) raise taxes and cut spending — that is how you balance the budget.

Current deficit is now ~$550B, down from over $1T.

If the tax cuts from 2001, 2003 were repealed, half of that deficit goes away.

If the FICA cap is lifted from $113k and allowed to rise to $250k or $500k, SS is solvent for 75 years.

If the US no longer spent the equivalent of the next 20 countries COMBINED on Defense, a huge chunk of the deficit goes away.

The US now spends 2X what most developed nations spend on healthcare. If you are concerned about the long term debt, than you must develop a system that radically lowers US health care costs, bringing them into line with what other industrialized nations spend.

Makes sense to me. 

There's more, of course. Read the whole thing here...

Sources:

http://www.ritholtz.com/blog/barry-ritholtz-curriculum-vitae/

http://www.ritholtz.com/blog/2013/10/the-truth-about-the-deficit/