Congressional panel proposes $4 trillion in cuts

I can live with cutting just about every subsidy out there especially farm subsidies. I would also like to see tariffs removed.

I want to get rid of social security, but I think means testing is fine. Yes, Bill Gates paid into social security and it was never meant to be a redistribution scheme, but a lot has changed.

Actually if the feds would just hold spending at 2008 levels, the budget would get balanced in a few years. Then we could start tackling the debt.

Corporations should pay no income tax. The money that goes to gov could instead go to shareholders or reinvested. Both are far, far superior to giving it to government.

If anyone thinks the increase in gas tax will be sufficient to fund roads and that pols will not want to add money to it, you are nuts. Pols love saying "I helped get this road built". Also, I bet the libs will want to divert that money into light rail (a huge waste of money).

I do not trust government to take away the mortgage interest deduction and to keep taxes at the proposed rates. Within 5 years, the libs will be saying that taxes need to be increased.

None of these recommendations are new or novel. So why this "commission"? A huge waste of time and money. Just an attempt for Obama and the pols to cover the respective asses.

Let's give the Fairtax a try (www.fairtax.org). It simplifies the tax code (by doing away with it).

This is a great first step, but they will have to cut far more than $4 trillion over the next 10 years to prevent a total collapse of the economy. The current debt already cannot be repaid.

TCB wrote:

http://www.nytimes.com/2010/11/11/us/politics/11fiscal.html?hp

I think this is a great first draft. It significantly reduces spending across the board including defense while lowering income and corporate income taxes. It also gets rid of market distorting subsidies and tax deductions and quickly doubles the gas tax. If we end up with anything close to this, America will be in solid shape for a while. It's political suicide, but its the type of long term thinking America needs right now.

I wish you could read more specifics. The math doesn't seem to add up. Eliminating MI deductions allows a significant drop in tax brackets? (Highest goes from 35% to 26%?) This seems a bit... too perfect. There must be more. Student loan payments? Child tax credits? Those gone, too?

As far as big picture, 4 trillion by 2020 is significant. But... what does this mean for education? The military (where, specifically, are the cuts coming from?) Medicare? What's in the fine print?

I like the raise in retirement age, increases in SS contributions (taxes), etc, in order to make SS solvent for 75 years. Gas tax proposal is solid, too.

I guess, overall, it's a good 1st step. Obama haters... can you give the guy some love?

"I guess, overall, it's a good 1st step. Obama haters... can you give the guy some love?"

No, and here's why: the plan will never take place. The article makes that very clear. He is retreating to the right, but doesn't believe that a word of this report is actually good for America.

so the OP claims this is a "congressional panel", another two of you talk about this being Obama's plan -- let's be clear, it is neither of those things.

this is the initial starting point for final discussions of the deficit commission, appointed by Obama, but independent of him and comprised of respected members of both parties.

this initial proposal, as i understand it, is pretty much the work of the two co-chairmen, and in order for any of it to make it into the final report, 14 out of 18 commissioners need to endorse the plans.

if a plan can garner 14 out of 18 votes, then congress has agreed to vote yes or no, with limited or no amendments prior to voting.

I'm not sure why you think this is an enormous waste of money. I don't see any indication that it cost much money.

Why do you think light rail is a huge waste of money? It provides a demonstrable benefit and all the money spent stays within the US economy.

Tax the Wall Street firms and hedge funds into the stone age.

No prisoners!

EAT THE RICH!!!!

Put Fuld, Cassano, Thain, Greenberg, Paulsen, Bernanke,

Greenspan et al IN JAIL!!!! Strip them ALL of their resources and pay off the debt.

Cubed wrote:

I'm not sure why you think this is an enormous waste of money. I don't see any indication that it cost much money.

Why do you think light rail is a huge waste of money? It provides a demonstrable benefit and all the money spent stays within the US economy.

Because no one uses light rail, that's why. Really, go look up statistics for how many people use light rail where it is accessible. If you build it, no one will come!

That's great to hear. Also the US needs to eliminate it's Imperialist Occupation of Palestine and it's support for Nazi Zionism. You might ask, what is a Nazi Zionist ?

1. a Nazi Zionist is a person who supports/expresses Zionism using Nazi fundamentals.

2. a prejudice person who claims Israel is the birth right of all followers of Judaism.

3. a person who denies the existence of Palestinians Muslims and Christians.

4. Nazi Zionism refers to the Israeli government which is currently committing a Genocide against the Palestinian population. -Ethnically cleansing the land of all Palestinians (as Hitler had done with the Jews)

5. Nazi Zionist commits crimes against humanity and gets away with and says the whole world is racist when questioned.

6. a delusional creature, might be schizophrenic, believes the whole world is out to get him when in fact he is out to get the whole world.

7. A Jew who brings pain to the Palestinian people/who makes them suffer and acts and commits the same acts of cruelty that Hitler committed on the Jewish population.

8. Nazi Zionist, clearly a hypocrite.

9. A person who oppresses Christian and Muslim Palestinians.

10. one who drops 1 million cluster bombs on an innocent population and gets away with it.

11. an ideology which goes unpunished with the highest # of UN violations.

12. group that controls AIPAC which essentially controls the United States.

13. Group that imprisons children in unbearable prisons and gets away with it.

14. is the best liar, cheat, murderer, manipulator, evil and inhumane person.

F*** off Asshole

why would the economy collapse if u.s. gov't debt does not fall by trillions? we are nowhere near debt problems, and it would only exacerbate the debt issues by cutting government spending now, when the recovery is precarious. If we were near debt problems, then we would see a flight from the dollar and high interest/inflation. We see none of that.

There is a lot of good thinking in this plan, but the Dems will never let it happen.

Boston Tea Party wrote:

That's great to hear. Also the US needs to eliminate it's Imperialist Occupation of Palestine and it's support for Nazi Zionism. You might ask, what is a Nazi Zionist ?

How old are you? I'm sorry if you are a woman, as I know it is rude to question a woman about their age. I'm just so excited for you to die, and I would like to start a countdown.

How much money can we save if Yohmammy stop his stupid little war against Islam ?

Wouldn't elimination of the mortgage deduction drive housing prices lower yet?

Certainly:

Increase the income tax for incomes over $250,000.

100% 1st year straight line capital equipment amortization to immediately spur purchases of industrial goods.

Totally ELIMINATE taxpayer funded retirement, medical benefits, life insurance for public sector employees.

Totally ELIMINATE private sector employer paid employee's medical and retirement benefits. Only Social Security, State Disability, State Un-Employment Tax should remain.

End the wars of imperialism in the Middle East.

I urge Congress to pass the $4T cuts now before the end of 2010 since the Democrats can do it alone. It may be political suicide. Every gov't union will swear off Pelosi and Reid, but they have to sacrifice themselves for America's future. Email Pelosi and Reid NOW DAMN IT !

I meant to say Email Pelosi and Reid NOW GOD DAMN IT !

aholian wrote:

There is a lot of good thinking in this plan, but the Dems will never let it happen.

True, but neither will the Republicans.

Too bad.

I'm not sure why Pelosi felt the need to trash the proposal as soon as it was released. Perhaps it was part of her effort to appeal to her fellow House Democrats during the current jousting to replace her in the Party leadership. All the more reason to get rid of her.