(CNN) -- President Bush's $2.9 trillion spending plan calls for billions more to fight the wars in Iraq and Afghanistan and cuts in other government programs -- including Medicare and Medicaid -- as part of the president's goal of eliminating the deficit in five years.
We asked CNN.com readers how they would balance the federal budget. The following is a selection of the responses, some of which have been edited for length and clarity:
John Graham of Battle Creek, Michigan
Very Easy! - A WAR TAX. Since the people in control of everything -- politicians, businessmen, old money heirs -- have the most to lose, a large tax on wealth and income not earned from a job. If there really is a need for the war then the patriotic rich will be willing to pay it. If the war isn't justified, the rich will stop the war to avoid paying the tax. We could also have a TERRORISM TAX for those who believe there is a war on terror.
Shelia of Chanute, Kansas
If we didn't give BILLIONS every day in foreign aid to countries that despise us, we could have a balanced budget. Bring our troops home! Use the money saved on the war to help our children and people on Medicare!
Anne Cheek of Irvington, Virginia
Eliminate all pork barrel expenses and any extra spending costs and programs except defense, Medicare, Medicaid and homeland security. Stop supporting every special need and problem. Any money should be given to states rather than the federal government.
Russ Onderko of Hackettstown, New Jersey
Balance the budget by cutting spending.
1. Eliminate the Dept. of Education
2. Simplify the tax code and drastically reduce the size of the IRS
3. Representative's staff should be cut in half.
4. Close all U.S. military bases in Germany.
5. Eliminate all farm subsidies
6. Eliminate all gov't payments to illegal aliens
Gary McFall of Atlanta, Georgia
We [need] a 10 percent reduction in spending across the budget. A two-year freeze on increases across the board for all departments and expenditures. A two-year freeze on all new pork. No new roads or bridges, no new museums or libraries, no new memorials or national parks. Significant cuts in military bases nationally and around the globe. Reduce our involvement in military activity around the word and see if anyone really misses us. If they do they can help pay some of the bills if they don't want to send troops. Social Security must be fully funded from our Social Security taxes and the money cannot be used for anything else. The fund should be invested in a broad array of no risk, low risk and medium funds to increase the return.
Increase in Medicare and Medicaid must be tied to the overall budget process each year and should never be automatic. Do not allow Congress to add spending riders to bills. Budget issues must be in the budget and not pork placed on must-pass bills. Create term limits for Congress of six years in the House and 12 in the Senate. Maybe they will be able to do what's best for the country if they don't think of running for office as a career for 30 years buying votes from their constituents. Give the president line item veto for the budget. If the Congress can't override his veto, maybe we would not get a bridge to nowhere. As a country. we should force our government to live the way we do when times are tight. Reduce spending. Put off some upgrades, and keep the old stuff working so it does not have to be replaced.
Dale Hebert of Yadkinville, North Carolina
Stop wasteful spending! The leaders of our country send out billions of our tax dollars overseas every year! And "We the People" are completely tired of seeing our hard-earned dollars go to build up other countries. I would urge our leaders to invest in industry within our nation, and let other countries take care of their own matters.
1) Stop borrowing money from foreign entities! How can we ever be a strong financial nation if our leaders use foreign capital?
2) Then stop committing our tax dollars overseas!
3) Invest in our industry.
4) Our dependency on foreign oil is huge. Invest in alternate fuel technology and research.
Jim Supplee of Williamsburg, Virginia
To find out how serious we are about fighting the war on terror I think that there should be a tax increase commensurate with the additional money needed. It would accomplish two goals:
1. We would demand results if we had to pay as we go and 2. it would cause a serious debate as to how we fight this war (on terror). Paying for the war on terror (and the fiasco in Iraq) with a tax increase would restore the surplus we should be generating with such a strong economy.
Tamara Johnson of Wales, Wisconsin
I would leave a skeleton force in the neighboring countries around Iraq and bring most of the soldiers home. I would spend more money on education for salaries, buildings and supplies and for diplomacy with those nations that we have disagreements with. I would put government restrictions on drug and health insurance prices and would extend Medicaid to cover the working poor. I would create government subsidies for college for those making under $150,000. More help would be given to those with the lowest incomes. I would only make the marriage penalty and AMT tax cuts permanent. I would create higher tax brackets for those making over $500,000, those making over $1 million dollars, $2 million, etc. Each would be incrementally higher. I would means test collecting Social Security based on this same formula. The ability to receive this benefit would dwindle away. I would raise the cap on taxable earnings for Social Security to $200,000, and it would increase every year. I would purchase optical scan voting machines for all precincts that do not have them and make this the only method of voting. I would create an offshoring, outsourcing and relocating tax that all corporations would have to pay in order to sell their products in the U.S.
Mark Price of Charleston, South Carolina
Balancing a budget is simple. Allow each voter a given number of "budget points" to allocate as (s)he sees fit. Then total the points for each budget item and divide the revenue from legally-collected taxes among them accordingly. We might even increase voter participation by creating a "Sim-Budget" game type of interface.
Charles Moore of Laguna Woods, California
1. Tax the high earners.
2. Fund only the present Iraq war, but no increase, and reduce the war budget after 6 months.
3. Do not attack Social Security; instead, reduce benefits for the high earners, and build the fund back up.
4. Reduce nonessential budget items, like the space program, etc.
5. Increase home security budget
6 Enforce the present immigration laws, and stop supporting illegal [aliens] with things like school expansions, housing and health care subsidies.
DeWitt Beck III of Bloomington, Illinois
The cuts should be made in Congress, all Representatives, House speakers, Senators, committee chairmen, etc. should have their salaries cut until the deficit is in the black.
Ron Sowa of Ridgeland, Mississippi
Freeze the Defense Department budget forever, we already can take on the whole world if we had to. I suppose we have to have extra money for the costs in Iraq; but we can also start dropping whatever funding goes to nuclear weapons over the next 10 years until it is half of what it is now. Start increasing the tax rate on all of us who have incomes over $100,000 per year [with] 1 percent increases each year until it hits 60 percent, or until the government budget is balanced.
External sites open in new window; not endorsed by CNN.com
Pay service with live and archived video.