This simple simulation is a great exercise for those who need to experience the feel of the trade-offs which policy makers need to make in creating federal budgets and dealing with deficits. The National Budget Simulation, asks you to adjust spending and tax expenditures in the the 2004 budget proposed by the White House in order to achieve either a balanced budget or any other target deficit.
The Simulation also allows you to adjust the costs of the 2001 and proposed 2003 tax cuts, either cutting or cancelling them to raise revenue, or increasing them to create larger tax cuts. It also allows you to increase or decrease tax expenditures, also known as tax deductions, credits or "loopholes."
Considering the current crisis faced by the state of California, I think this simulation may provide valuable information toward their decision making process. Additionally, this is a powerful tool within an economics course or any course that teaches how governments make the decisions that keep them financially solvent.
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