.Overthe past many years, there has been ongoing debate raging inWashington, D.C. regarding the U.S. federal budget. As the U.S. deficitincreases, some argue that cutting government spending should be a keypriority of our lawmakers. Others favor more gradual decreases, such as raising taxesor implementing a proposed freeze on discretionary spending. Eitherway, as an economic adviser to the President, you have been tasked withpresenting a proposal that addresses how to fix a current budget gap of$300 billion dollars in an effort to appease both sides of this debate. Usingthe budget below, decide what options you will suggest cutting orimplementing for your presentation to the president. Remember that theseactions must cover a budget gap of $300 billion.  Please keepin mind that these changes could seriously affect citizens’ daily lives.Also keep in mind people may be so angered by the changes that theywill take action to prevent the president’s reelection, thus putting youout of a job.DOMESTIC PROGRAMS AND FOREIGN AIDCut foreign aid in half $17 billionEliminate farm subsidies:Opponentsbelieve subsidies help large businesses at the expense of small farms.Supporters believe subsidies protect American agriculture. $14 billionCut pay of civilian federal workers by 5 percent $14 billionReduce the federal workforce by 10%: This would eliminate approximately 200,000 federal jobs. $12 billionOthercuts to the federal government: This includes reduced funds for theSmithsonian and the National Park Service, and closing the Office ofSafe and Drug-Free Schools. $30 billionCut aid to states by 5%: This pressure states to cut funding for schools, police, and other services. $29 billionMILITARYReducenuclear arsenal and space spending: This would cut the number ofnuclear warheads and end the ‘Star Wars’ missile defense program. $19 billionReduce military to pre–Iraq War size and further reduce troops in Asia and Europe $25 billionCancelor delay some weapons programs: This would cancel some expensivepurchases identified by the Sustainable Defense Task Force as possiblecuts. $19 billionHEALTHCAREEnactmedical malpractice reform: This option would begin to reduce thechances of large malpractice verdicts, which supporters believe wouldalso check rising medical costs. Opponents say it could reduce doctors’incentives to avoid errors. $ 8 billionIncrease the Medicare eligibility age to 68 $ 8 billionRaisethe Social Security retirement age to 68: This would rise from thecurrently planned 67, encouraging people to work longer. $ 13 billionEXISTING TAXESReturnthe estate tax to Clinton-era levels: Those passing on an estate worthmore than $1 million to their heirs would have portions of those estatestaxed. $ 50 billionEnd Bush tax cuts for income above $250,000 a year $ 54 billionEnd Bush tax cuts for income below $250,000 a year $ 172 billionPayrolltax increase for high earners: Those making over the current ceiling of$106,000 would have to contribute more to Social Security and Medicare. $ 50 billionNEW TAXESMillionaire’s tax on income above $1 million $ 50 billionNational sales tax: This would add a tax of 5 cents on every dollar for most purchases. $ 41 billionCarbon tax: This option would tax carbon emissions, which scientists believe contribute to global warming. $ 40 billionBank tax: This would tax banks based on their sizes and the amount of risk they take. $ 73 billionTotal gap covered by your budget plan $_________________When you have reached your target, save your results—you will need to refer back to them