The federal government faces an estimated annual structural budget deficit of $500 billion –700 billion. Deficits of this magnitude represent a major threat to the economic health of the nation. A plan to reduce and eliminate this structural deficit is urgently needed.

Observers believe the President’s National Commission on Fiscal Responsibility and Reform (The Debt Commission), which is charged with developing such a plan, may set a target of reducing the deficit by about $7 trillion over a 10-year period. If such a deficit-reduction plan is to be credible, the federal government must adopt an aggressive spending reduction program that includes reforming entitlement programs, eliminating low-priority programs, and adopting commercial best practices in government operations.