Recently, in a discussion about economics, I was asked this question: "What specific cuts to the federal budget would you make?". Of course I'm not an expert on government spending, so I couldn't bring solid statistics (specifics) to bear here. I can, however, point to some very sound logical starting points. I'd love to hear your thoughts on these...and please remember that they're not the result of hours of serious study. I wrote them off the top of my head, so they're neither complete nor perfect.

1. Every government agency would have outside watchdogs. Without accountability, greed and stupidity run rampant. These watchdogs would be responsible for finding ways to make the agency more efficient...that is, helping reduce the NEED for that agency's work, making that agency's work more cost-efficient, and watching for abuse. They would have incentives built into their jobs: the more money they saved the taxpayers, the more money they would make.
2. I would eliminate 90% of the IRS by eliminating income taxes. We would only pay state and local taxes, based solely on consumption. States would then fund the federal government based on their own GDP.
3. I would spend less on our military by replacing troops with tech wherever feasible...and I'd try to fight fewer wars.
4. I would seek to eliminate the National Endowment for the Arts. They may do some good (for which I would keep them around) but there's no reason that the NOAA office in Boulder should have millions of dollars of taxpayer-funded art inside. There's no public benefit to such spending beyond lining the pockets of artists...the building isn't even open to the public!
5. I'd cap government salaries at 100% of the private-sector equivalent. There's no reason that government workers should make so much more than everybody else, considering that everybody else is paying their way.
6. I'd get America out of the UN, and tell the UN to get out of America. Even past UN leaders are saying that it's a ridiculous, inept, and corrupt organization. Spending $1 on the UN is a waste of $1, in my book. We can do better.
7. I'd require EVERYONE to abide by the laws we've enacted. Congressmen would have to pay their taxes, diplomats would have to pay their parking tickets, and so on. That wouldn't amount to much money, but the public would have fewer reasons to resent our government.
8. I'd make sure that the VA really works. This isn't a cut, but it would affect the budget. Our veterans deserve a lot more than they've gotten, and in some cases they deserve everything we can offer. That might cost more money, but the public would have fewer reasons to resent our government.
9. I'd eliminate all federal education programs. Local taxes pay for education, and control of the money spent should be local. That would reduce bureaucracy and add accountability...not to mention putting parents closer to those who control local schools.
10. I'd slash the EPA. From where I stand, it's one of the most bloated, inept, and corrupt organizations in existence on the planet. Yes, we need to take care of the planet. No, we shouldn't not take care of the planet. Yes, we need to take care of the planet. =)
11. I'd eliminate NASA. There are other ways to make Muslims feel good about their contributions to math and science in 700AD. There are also other ways to accomplish the same scientific feats...we just haven't worked on them because NASA is there.
12. I'd offer a bounty of $1,000,000 for anybody in the world that can prove that the US government is wasting $1,500,000. In other words, I'd take all the help I could get to make sure the government is a good steward of the public's money.
13. I'd offer a reward of $1,000,000,000 to anyone that can produce an alternative energy source that's renewable, non-destructive, doesn't pollute, and is reproducible for the general public.
14. If any federal money goes to Wall Street, I'd stop that.
15. I'd stop the current system of government contracting. No more $7000 hammers. If Home Depot has the best price, they get the sale. Equal playing field, no preferential treatment, no waste. If Home Depot's hammers aren't good enough (and so are less cost-efficient), shop around for better hammers. If none are what you need, let the public know...they'll build them for money.
16. I'd require a "long-term" balanced budget...anything that couldn't be reconciled in 5 years is out, and no additional borrowing until existing debt is paid off.

That's enough for now. What would YOU do? Leave your ideas below!