The tradeoffs

Cut this — here's what happens

Every line on the board funds something real. This is the honest ledger behind it: no spin, no painless cuts, just what each program does and what you give up by shrinking it.

Why this page exists
It's easy to say "cut spending" in the abstract. It's harder once you name the program and who it serves. That naming is the whole point — it's what keeps a budget tool honest instead of partisan. The baseline deficit is $2.05t; closing it means choosing among these, not wishing them away.

If you cut spending

Ordered largest to smallest. The bigger the line, the more a cut moves the deficit — and the more people it touches.

Social Security

$1.45t21% of spending

What it does: Monthly retirement, survivor, and disability benefits to roughly 68 million people — for most retirees it is the majority of their income.

The tradeoff: Smaller monthly checks for retirees, survivors, and people with disabilities; lifts elderly poverty most.

Medicare

$1.02t15% of spending

What it does: Health coverage for people 65+ and many with disabilities — hospital stays, doctor visits, and prescription drugs.

The tradeoff: Higher premiums and out-of-pocket costs for seniors, or providers paid less and dropping Medicare patients.

Net Interest on the Debt

$950b14% of spendingnot a lever

What it does: Interest owed on money already borrowed. This is contractual — it is not a program you can vote to cut, only something deficits make bigger over time.

The tradeoff: Not directly adjustable: you reduce it by running smaller deficits, not by choosing to pay less.

National Defense

$850b12% of spending

What it does: Pay and benefits for service members, ships, aircraft, weapons, operations, and military readiness worldwide.

The tradeoff: Smaller force, slower modernization, and reduced operations — readiness and deterrence questions.

Everything Else

$700b10% of spending

What it does: Science and NASA, courts and law enforcement, diplomacy and foreign aid, national parks, agriculture, the IRS, and the rest of government operations.

The tradeoff: Across-the-board thinning of federal functions most people rarely see until one stops working.

Medicaid & CHIP

$620b9% of spending

What it does: The federal share of health coverage for low-income families, children, people with disabilities, and most nursing-home care.

The tradeoff: Fewer people covered, less nursing-home support, and states forced to backfill or drop benefits.

Income Security

$480b7% of spending

What it does: SNAP (food assistance), unemployment insurance, the refundable tax credits, SSI, and housing aid — the safety net during hard times.

The tradeoff: More food insecurity and deeper hardship in recessions, when these programs do the most work.

Veterans' Benefits

$320b5% of spending

What it does: Disability compensation, pensions, and VA health care earned by those who served in the armed forces.

The tradeoff: Longer waits and thinner care for veterans — benefits widely treated as a promise already made.

Other Health

$200b3% of spending

What it does: ACA marketplace subsidies, public-health agencies (CDC/NIH-adjacent operations), and other non-Medicare health spending.

The tradeoff: Pricier marketplace coverage and weaker public-health and disease-response capacity.

Education & Training

$150b2% of spending

What it does: Title I aid to high-poverty schools, Pell Grants for college, special-education (IDEA) funding, and workforce training.

The tradeoff: Less help for low-income schools and college students; states and families absorb the difference.

Transportation

$110b2% of spending

What it does: Highways, bridges, transit, air-traffic control, and rail — the physical network that moves people and goods.

The tradeoff: Deferred road and bridge repair and thinner transit; costs tend to resurface later, larger.

If you change taxes

Raising revenue shrinks the deficit too — but someone pays it. The honest question is who.

Individual Income Tax

$2.35trevenue source

What it does: The single largest source of federal revenue — taxes on wages, salaries, and investment income, collected through the bracket system.

The tradeoff: Raising it asks individuals to pay more now; cutting it grows the deficit unless spending falls to match.

Payroll Tax

$1.70trevenue source

What it does: Social Security and Medicare taxes split between workers and employers — dedicated funding for those two programs.

The tradeoff: These taxes fund Social Security and Medicare directly; changing them changes those trust funds.

Corporate Income Tax

$420brevenue source

What it does: Tax on corporate profits. Economists disagree on how much is ultimately borne by shareholders versus workers.

The tradeoff: Raising the rate raises revenue but its incidence — who really pays — is genuinely debated.

Other Receipts

$330brevenue source

What it does: Excise taxes (fuel, alcohol, tobacco), customs duties and tariffs, estate and gift taxes, and Federal Reserve remittances.

The tradeoff: A grab-bag of smaller streams; individually modest, collectively meaningful.

Try it on the board →
Sample · Consequences summarized from CBOOfficial · CBO Budget Outlook