In spite of the economic boom that allowed a balanced budget for four years in the late nineties, the United States has spent the 2000’s steadily adding to the budget deficit.

Since September 2007, the nation has added an estimated $3.85 billion per day to the national debt. The current situation is nothing short of dire. Last year, the government added $1.4 trillion to the nation’s deficit.

To make matters worse, President Obama recently presented Congress with a massive proposal that would, over the course of the fiscal year starting in October 2011, cost the United States $3.8 trillion. According to the National Debt Clock, which calculates the United States’ debt in real time, our nation is already more than $12 trillion, and this proposal will only exacerbate the problem.

It’s clear that the budget needs to be balanced—but how? After all, the government is already taxing many hardworking American families to the limit, and there’s no end in sight.

What the government needs to consider are a few practical, commonsense ways to attack the budget deficit without attacking the taxpayers. All of these steps involve pain. There is simply no way to cut without somebody being on the receiving end of the cuts. We love farmers for example and wish them the very best, but we do advocate ending the subsidies. Following are ten steps the government can take to cut almost $300 billion annually. Its important to note that number STILL does not balance the books, but it takes a huge slice out of the deficit. That some of these proposals may seem draconian and they still dont cover the huge hole speaks volumes about mess the government has created. Most of these would reduce entitlements, while others simply hold the government accountable for out-of-control spending.

1) Reduce Social Security spending by limiting cost of living increases.
In 1975, legislation enacted annual cost of living (COLA) adjustments to the cost of living increases in the United States’ Social Security system based on changes in the Consumer Price Index for Urban Wage and Clerical Workers (CPI-W). These increases are intended to keep Social Security and Supplemental Security Income in line with rises in inflation. However, these increases simply increase the amount taxpayers are putting into Social Security. By cutting or scaling back this entitlement, we would be able to apply more taxpayer money to the budget deficit. There were no COLA adjustments in 2010 based on the decline in the CPI-W; however the CPI-W is projected to increase in 2011. For more info see: 1) Social Security, 2) Federal Budget; 3) Center on Budget and Policy Priorities.

Estimated savings: $20 billion

2) Reduce Social Security spending by increasing the retirement age gradually, 1 month per year.
Social Security benefits suck up the largest portion of our nation’s mandatory spending, an estimated $695 billion in Obama’s 2010 budget. This was a 4.9% increase from 2009. While the government has enacted a slow increase in the retirement age (those born later than 1960 can claim full benefits at 67 instead of 65), the government can do more. An increase of one month per year on the current plan will save money on payouts to baby boomers and beyond. For more info see: 1) Social Security, 2) Science Blog, 3) The American Conservative, 4) Federal Budget

Estimated Annual Savings (if the retirement age were raised to 70): $60 billion

3) Reduce Medicare by increasing the deductible.
Medicare ranks just under Social Security in terms of mandatory spending. In 2010, the Part B deductible was increased from $110 to $155. However, the Part B deductible for hospital stays was only increased $32 from 2009’s deductible of $1,068. A less modest increase would result some budget-balancing funds, with the help of the nearly 50 million Americans on Medicare. For more info see: 1) Medicare and Medicaid, 2) Federal Budget, 3) Politico

Estimated Annual Savings: $28.9 billion

4) Eliminate all farm subsidies.
In 2004, farm subsidies cost the government a cool $8 billion. In recent years, farm subsidies have grown to $20 billion. While Obama’s budget has cut farm subsidies, eliminating them entirely could provide a nice bit of money with which to attack the budget deficit. Yes, doing so may seem harsh—but are the risks of running a farm (such as the threat of natural disaster) any different than the risks encountered by those running their own businesses? Moreover, cutting these subsidies could result in a more frugal agricultural system that does not produce to excess. For more info see: 1) Business Week, 2) Agricultural Subsidies, 3) Library of Economics and Liberty

Estimated Annual Savings: $20 billion

5) Trim 5% from defense spending.
Ensuring the safety of the United States should be the primary goal of any President, so why cut defense spending? The fact is, Obama’s spending freeze does not apply to defense spending, and it’s not doing us any favors. Billions of dollars in earmarks always find their way into defense spending bills—in 2009, over a thousand earmarks in the updated defense spending bill cost taxpayers $2.7 billion. Taxpayers (and the economy at large) worked hard for that money, and it would be better applied to our nation’s debt. For more info see: 1) Christian Science Monitor, 2) CBS News, 3) CQ Politics

Estimated Annual Savings: $26.4 billion

6) Cut government employee payroll by 2% per year.
Our federal workforce is the largest in our nation’s short history and is paid an average of $71,260 per non-military federal employee. In the 2010 fiscal year, 153,000 workers are expected to be added resulting in a total non-military federal workforce of 1.43 million employees. In the 1990s, Republicans and Democrats worked together to cut the federal workforce back. It’s high time we save money with another gradual reduction. For more info see: 1) American Thinker, 2) NewsMax.com

Estimated Annual Savings: $2.04 billion

7) Cut the pork.
In 2009, earmarks in bills passed by Congress stood at a staggering 10,160, resulting in nearly $20 billion of taxpayer money spent on “pork.” Included in 2009’s earmarks were $3.8 million given to Detroit’s Old Tiger Stadium Conservancy and $1.8 million to research swine odor management in Iowa. For more info see: Citizens Against Government Waste

Estimated Annual Savings: $19.6 billion

8) Cut welfare spending.
Welfare expenditure in our nation accounts for 35% of GDP. While it’s clear that some people truly need welfare, particularly in the current economic climate, we run the risk of becoming a welfare state. A great place to start would be cutting welfare benefits entirely for illegal aliens, and applying that amount toward balancing the budget. For more info see: 1) American Welfare State, 2) Miami Herald, 3) Federation for American Immigration Reform

Estimated Annual Savings: $11 billion

9) Cap discretionary spending.
A proposed freeze on non-defense discretionary spending would save our government $250 billion over a 10-year period. However, this is a drop in the bucket compared to the deficit. If non-defense discretionary spending was limited to the rate of inflation, there’s a chance that it could make a difference. For more info see: 1) The Hill. 2) The Daily Caller. 3) EricCantor.com

Estimated Annual Savings $63.4 billion

10) Curb Medicare waste.
As mentioned above, Medicare is responsible for a huge portion of our government’s mandatory spending. But where is all the money going? An Associated Press article on MSNBC in 2008 concluded that billions of dollars have been wasted on questionable claims throughout the Medicare program, including—laughably—expensive shoes for amputees and walkers for paraplegics. It’s time Medicare be held responsible for every dollar it spends, and penalized when it plays with taxpayer money. For more info see: 1) Washington Examiner, 2) BillShrink.com

Estimated Annual Savings: $47 billion

Total Estimated Annual Savings: $298.34 Billion