Reducing Federal Deficits Without a Significant Revenue Increase Would Shift Substantial Costs to States — Center on Budget and Policy Priorities
One of the problems with going over the fiscal cliff, would be that there would be automatic across the board. Spending cuts, spending cuts is not the problem, anyone whose serious and has been following this debate, knows there. Will be spending cuts in whatever final deal is reached, the problem would be across the board spending cuts. Even in areas that don't need to be cut to get the deficit under control, like Federal mandates on the states, that the Feds. Are suppose to help pay for, like in the area of Medicaid, finding savings in safety net programs would be a good thing. So would decentralizing these programs and giving the people on the ground so to speak, more authority and input. In how these programs are run but forcing these programs onto the states without the revenue to pay for it. Would just be more unfunded mandates, requirements on the states to do things they want them to do without paying for it.
We could save hundreds of billions of dollars as a country, not by gutting programs, except for duplicate programs. Meaning programs that already exist but by simply reforming programs that we have millions of Americans that still depend on. Reforming them so people are on them can get themselves off of them by becoming self sufficient and letting the states. Run them which would give them more responsibility with the revenue to pay for them, so they don't have to raise taxes. Or cut other state programs that they depend on or a combination of both and then we could also fully finance all of these programs. Meaning they would all have their own revenue sources to pay for them, so the Feds and states wouldn't look to. Cut those programs, because the money will already be there and they wouldn't have to worry about general revenue to pay for these programs.
There are smart ways to finance deficit reduction and there are completely dumb ways to do it and there are. Smart ways to reform government and there are completely dumb ways to do it as well, so the idea is reform programs. That make them more effective, which will bring down the costs of them by itself, because they would simply be working better.