Lets cut federally mandated services, while both increasing and decreasing taxes.
I'd love for some politician somewhere to run on this:
20% federal flat tax, no deductions/reductions
The problem with that is non-profits and such would no longer get funded through tax deductions.
Solution:
10% of said tax goes to fed gov't.
remaining 10% goes into a pool for the citizen/household to allocate percentages or dollar amounts to State registered non-profits
Most government services and social programs get privatized into heavily regulated non-profits and registered as "officially sanctioned" services. (open to competition by other startup "officially sanctioned" service providers)
Citizens use the 10% pool to donate to registered non-profit organizations. Churches, schools, healthcare, social security, roads, bridges etc. People can choose to allocate, or not. If they choose not to, the other 10% goes to the fed. gov't as well. The federal gov't would be restricted from funding these services itself. (no bailouts)
Advantages: Non-profits and social programs that should die won't have funding, and will die. Popular programs useful to the people would flourish. In the end, the people would choose. The non-profits would be forced to compete for your allocation.
Disadvantages?