What should the government do about national debt?

Answer 1

The government first needs to cut spending in many areas, especially in military spending and foreign aide. It also needs to stop all excess spending on so many worthless programs that don't work.

It must also start to increase income, but not with more taxation. Instead, I suggest we give the general populace an incentive to pay their taxes by starting a national lottery that is run only once a year. . . on May 1st. The only way anyone can enter the lottery is on the back of their income tax return or if they file electronically, then as part of their electronic filing. Perhaps all filing will eventually become electronic to make it easier for all.

This will be the first time anyone has offered the American public any incentive for paying their taxes on time and directly gives them something back for filing.

For each filing of income tax, one or two entries would be allowed and there would be a limited amount that could be spent on lottery tickets, limited by the amount of one's tax return or no more than $100. apiece.

There would be no more extensions of time to file - or they lose their opportunity to enter the lottery.

The lottery would be a super mega-ball and the payout could be a Billion dollars to one person and there could be 100 or 1000 other winners - just so everyone gets a real opportunity to win something.

The proceeds would be mandated to go only for the reduction of the deficit and after it is paid off, then only for charitable contributions.

How's that sound?

Here's another answer: There are going to be a lot of different opinions about this, but let me give you mine. Governments, like individuals, should live within their means. Borrowing money is justifiable in times a national emergency such as a very expensive war (although it is also a really good idea to avoid getting into very expensive wars) but to borrow money continually, for decades, as the US has done (not including the Clinton administration) is economically ridiculous. Inevitably, continued borrowing will lead to the point where the government can't even afford to meet the interest payments, at which case you have national bankruptcy (which recently almost happened to Greece, although it was rescued by the European Union - if the US should come to a similar state, I predict that nobody is coming to the rescue). Therefore, what to do is to reduce spending and gradually pay off the debt, and stop borrowing money except in cases of genuine emergency, and even then, repay the debt as soon as possible. I know, this is fine in theory but very difficult in practice. Nobody wants to give up their own favorite government program. There are, however, ways to do it. For example, we don't really need to keep fighting the war on drugs. If people want to use recreational drugs, it may not be a good idea, but let them do it. The cost of trying to control what drugs everybody chooses to take is prohibitive. Interestingly, this is not just my idea, it was recently recommended by a prestigious UN panel. So it is actually a respectable idea. And military spending is clearly out of control. Yes, the US needs to ensure its national security, but it needs to do it in a less expensive way. Those are just two major examples, there are lots more.