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There is plenty of room to cut, the problem is that what needs to be cut is what each side cares about the most. We have ended one war and the other will be over next year, defense spending should be dropping massively, but Republicans don't want to cut it. The Social Security and Medicare age should also be raised, because people are living longer, but Democrats don't want to cut that. The only solution is for them to make deals that hurts both sides, like the recent sequester.



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