This is a bit confused. The US needs to pay about 0.5 trillion interest a year, or 1/5th of tax revenue. They borrow about 0.5 extra per year (which is why the budget ceiling needs to go up).
If the US wanted to instantly achieve a balanced budget, they would have to spend 3/5ths the current amount. When a government cuts the amount it spends, it shrinks the economy, and reduces tax take.
In the UK, a limited form of this strategy seems to be working, but in Southern Europe, a strong 'austerity' strategy is creating a spiral of reducing tax take (requiring ever greater cuts).
So the sharp reduction in the deficit you mention is not possible. It would need to be gradual.
The elephant in the room is that, in the US, China, and Europe, the aging population is coming. As the proportion of contributors to consumers of public spending shifts, more debt is inevitable. It's going to suck pretty bad for everyone, but if we (all of us) can't achieve a balanced budget before that hits, then things are not going to be as gentle.
If the US wanted to instantly achieve a balanced budget, they would have to spend 3/5ths the current amount. When a government cuts the amount it spends, it shrinks the economy, and reduces tax take.
In the UK, a limited form of this strategy seems to be working, but in Southern Europe, a strong 'austerity' strategy is creating a spiral of reducing tax take (requiring ever greater cuts).
So the sharp reduction in the deficit you mention is not possible. It would need to be gradual.
The elephant in the room is that, in the US, China, and Europe, the aging population is coming. As the proportion of contributors to consumers of public spending shifts, more debt is inevitable. It's going to suck pretty bad for everyone, but if we (all of us) can't achieve a balanced budget before that hits, then things are not going to be as gentle.