Where can the Federal Government save money.

Medicare and Social Security are 80% of the Federal Budget. The remaining 20% is a hard place to find that much savings. We have believed for some time that tax cuts can stimulate the economy into generating higher revenues for the federal government. In fact, Transnational Corporations are using the tax cuts to stimulate foreign economies. Sadly they do not pay few US taxes. I am not sure how to bargain to open up foreign markets, but even that can't resolve the debt unless it is Americans bringing home the bacon. A consumption tax would give Transnational Corporations an incentive to headquarter in the US again. Daimler/Chrysler (Fair Tax book p 64,) is an example I know of personally - they own Millenium Inc. Americans would rather work at home, and many foreigners would rather visit. As a point of reference, Neal Boortz observed that Texas and Florida are two of the world's 15 largest economies ( Fair Tax Book page 156.) They both have a consumption tax for state income. A federal consumption tax would make all 50 states more attractive, because federal income taxes would no longer drive them away (Fair Tax Book page 64.) I don't think a consumption tax can address all vice, but it CAN bring money home, and put Americans back to work. Other than that, mining the Canadian Shield and adding value to the product for the bubble economy of Japan of the 70s is an option that by itself cannot solve the issue, but should assist in stimulating the economy and bring up revenues over time.

Aside - very few administrations are as well respected by the private sector as the federal government.