The biggest problem for the Federal government is the Deficit. We are spending well beyond how much we bring in -- living beyond our means. This would not be tolerated for individuals or for corporations; it should not be tolerated for government.
There are only two basic solutions to this problem:
We must increase income. This means higher taxes. I believe in the graduated income tax. People with more money should pay more in tax. At my highest, I was paying about 50% in my marginal tax rate. But that was because I was earning a high salary. I could afford it.
At the same time, we need to try to cut costs. The current budget process is out of control. One solution is "Sunset" laws. Every program should be reviewed on a regular basis, and terminated unless it is explicitly renewed.
The alternative is the continued growth of the debt, which robs our children, limits the amount of capital available to business, and makes us dependent on foreign investors.