Just chop the Government down to its core. Let it give everyone education, thus opportunity and provide them an enviroment for investment and job and let them go make their own money. They'll be taxpayers then, saving more than they cost to educate.
Cut out all the Government intrusion of all kinds into other peoples homes, how much would that alone save?
Cut religion out of Government, it's job is to make rational choices, not Sky-Daddy moralising ones.
Cut out all the warring, ffs people, kill each other on Battlefield 3, its in HD and you can even pick what country you wanna play in if you have a paticular dislike for any nation for whatever reason.
Such bullshit in politics today, no REALIST candidates as far as the eye can see.
Government should be pro-free market but it should feed educated young people into that system, and not rape them for all their wages either. Ultimately because everyone gains (companies included) its not theft to be expected to pay for it (through a flax income tax, no deductions) when they start earning. That, enforcing private contracts, administering justice to those who attempt to deprive other people of their life, rights or freedoms and international diplomacy on behalf of its citizens interests are all the Government should really be left to.
Its not rocketscience, even the retards that get elected constantly on a worldwide basis should be able to handle that much.
EDIT: Spelling is all over the place, not feeling the urge to change it, you get the idea and if not...well, make sure your helmet is on in the bath