Cutting the national deficit is not that complicated.  Remember we're talking about deficit spending - not the national debt.  This is about spending less than you receive.  This means cutting expenses and cutting programs.  That's how it's done. 

Some worry that reductions in deficit spending will extend the recession.  Yes, for those that lose their jobs in Federal Government programs (this is spending cuts), that is a true statement. 

They also worry that cutting deficit spending will reduce tax revenues.  Yes, that's also true - for those that lose their Federal Government jobs they will no longer pay tax revenues.

However, the net impact will be to cut deficit spending.  If we assume a 30% tax rate, then for every $1 in Federal salary expenses that are cut, as a nation we will obtain a 70 cent reduction in overall deficit spending.

Cut a dollar in salary expenses - reduce deficit spending by 70 cents.

For all you accountants out there - if I have this wrong please correct me - and please remember this is a simplified explanation.  I'm ignoring future pension payouts, current benefit payouts etc.

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