The CATO Institute has produced a plan showing how to reduce federal spending to match revenues (balance the budget) by 2020 WITHOUT raising any taxes.
http://www.downsizinggovernment.org/balanced-budget-plan
Federal spending is soaring, and government debt is piling up at more than a trillion dollars a year. Official projections show rivers of red ink for years to come unless policymakers enact major budget reforms. Unless spending is cut, the United States is headed down the road to economic ruin.
Policymakers should implement an emergency plan of cuts to defense, domestic, and entitlement programs. This essay proposes spending cuts of $1 trillion annually by 2020, which would balance the budget without resorting to damaging tax increases. Federal spending would be reduced to 18.5 percent of gross domestic product by 2020 under the plan, which compares to President Obama's projected spending that year of 23.5 percent of GDP.
A large percentage of the spending cuts proposed are to reduce or eliminate subsidies, grants, and other methods the government uses to outright give money to people they favor. For example, cuts are specified to farm subsidies, as well as various grants and training subsidies. And yes, business subsidies are also cut.
All in all, it's not a bad plan.
Now, contrast that plan to the one put out by Obama's "fiscal panel." Their plan would cut some spending but also raise a lot of taxes... with the predictable effect on our economy. Possibly the biggest increase would be an additional 15 cents on each gallon of gasoline we buy.
http://www.cbsnews.com/8301-503544_162-20024235-503544.html
Compare the two and decide. In my opinion, it's no contest. Part of the problem is that the federal government is branching out and getting involved with things it shouldn't be dealing with, and all of this costs money. We MUST trim back the branches of an overgrown government if we want to have any chance of long-term improvement.
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