(Richard Santomauro) – In political circles, the term “fiscal cliff” is often used as a rhetorical device – a warning of what might happen if Congress fails to act.
But what if the United States isn’t standing near the edge of a cliff anymore, but has already gone over it – and just hasn’t hit the ground yet?
With a national debt surpassing $34 trillion, annual interest payments approaching $1 trillion, and budget deficits that routinely exceed $1.5 trillion, it’s time to stop pretending that the U.S. fiscal trajectory is sustainable.
No family, business, or state could survive on the federal government’s current financial model.
Yet Washington continues to borrow against the future, gamble with global credit markets, and pass the burden of repayment onto the next generation.
The Numbers Tell a Grim Story
In Fiscal Year 2022, the federal government spent approximately $6.27 trillion but collected only about $4.9 trillion in revenue.
That’s a deficit of over $1.3 trillion – in just one year. And despite strong tax receipts from a post-pandemic economy, the U.S. still fell deep into the red.
Interest payments on the debt are the fastest-growing category of federal expenditure. By 2025, the U.S. could be spending more on interest than on defense or Medicare.
This is the cliff we’re already tumbling down.
A Plan for Fiscal Survival
To assess whether the crisis is solvable, I explored what it would take to fully balance the federal budget while maintaining essential services.
The framework was bold but rooted in math, not magic. Here’s what the balanced plan included:
- Tax Reform:
- Implement a flat 23.92% tax on all personal income and realized capital gains.
- Keep the IRS in place to enforce compliance and preserve revenue integrity.
- Maintain a 5% federal tariff on all imports.
- Raise Social Security taxes by 1% on both employees and employers to shore up its solvency.
- Spending Cuts:
- Reduce total federal spending by 40%—an aggressive but mathematically necessary measure.
- Eliminate the Department of Education as a federal bureaucracy while retaining $41 billion in education grants to the states to preserve direct student support.
This budget plan eliminated the deficit completely, covering $4.106 trillion in spending with $4.106 trillion in revenue. It’s a rare sight in modern American governance: balance.
The Path Is Narrow – and Painful
But let’s be honest: even this “solution” is a political Mount Everest.
Implementing a flat tax approaching 24% on all income would face fierce resistance from both the left and the right.
Slashing government spending by 40% would impact virtually every agency and entitlement program, sparking widespread public backlash.
And increasing payroll taxes – even slightly – remains a third rail in American politics.
Eliminating an entire Cabinet department, even with safeguards for continued funding, would likely trigger legal, bureaucratic, and ideological battles in every statehouse and school district.
So, Have We Gone Over the Cliff?
If going over the cliff means losing the ability to act rationally in the face of unsustainable debt, then yes – we’ve already gone over.
The U.S. still has the economic might, the global reserve currency, and the capacity to fix this – but the political will is lacking.
The longer we delay serious structural reform, the more the eventual correction will be forced upon us – not by lawmakers, but by bond markets, rating agencies, and economic reality.
The question is no longer whether we can afford to fix the problem. The question is whether we’re still brave enough to try.
Mr. Santomauro is the Clark County Republican Party Trustee for District F. The opinions expressed by contributors are their own and do not necessarily represent the views of Nevada News & Views.
