Deficit targets: Social Security, mortgage breaks, Scarier than missles..

WASHINGTON – In a politically incendiary plan, the bipartisan leaders of President Barack Obama's deficit commission proposed curbs in Social Security benefits, deep reductions in federal spending and higher taxes for millions of Americans Wednesday to stem a flood of red ink that they said threatens the nation's very futur

With all that is going on right now..I would think this would REALLY scare most Americans...
I mean seriously folks..
source

The White House responded coolly, some leading lawmakers less so to proposals that target government programs long considered all but sacred. Besides Social Security, Medicare spending would be curtailed. Tax breaks for many health care plans, too. And the Pentagon's budget, as well, in a plan designed to cut total deficits by as much as $4 trillion over the next decade. The plan arrived exactly one week after elections that featured strong voter demands for economic change in Washington. But criticism was immediate from advocacy groups on the left and, to some extent, the right at the start of the post-election debate on painful steps necessary to rein in out-of-control deficits. The plan would gradually increase the retirement age for full Social Security benefits — to 69 by 2075 — and current recipients would receive smaller-than-anticipated annual increases. Equally controversial, it would eliminate the current tax deduction that homeowners receive for the interest they pay on their mortgages. No one is expecting quick action on any of the plan's pieces. Proposed cuts to Social Security and Medicare are making liberals recoil. And conservative Republicans are having difficulty with options suggested for raising taxes. The plan also calls for cuts in farm subsidies, foreign aid and the Pentagon's budget.

oooooooh, scary,

Maybe if we bury our heads in the sand everything will get better.

It worked for the Dodo, erm.................maybe it did not. Maybe we should actually TALK about it. Hmmmm?

reply to post by saltheart foamfollower


I think most Americans do have their heads in the sand..

The government reported separately Wednesday that the deficit for last month alone was $140.4 billion — and that was 20 percent lower than a year earlier. The red ink for all of the past fiscal year was $1.29 trillion, second highest on record, and this year is headed for the third straight total above $1 trillion. Current deficits require the government to borrow 37 cents out of every dollar it spends.

reply to post by baddmove


Imagine just California, they had the $20 million for just one day of unemployment.

In two years, their pensions are going to be 5 TIMES their intake of taxation.

Oh well, where is that sandy beach? I need some sand.

We are going to have to take emotion out of the equation. Putting the brakes on budget deficits and government debt is going to be painful. There is no way around it.

I liked the idea of eliminating tax deductions, while decreasing the tax rates. However, I am still against graduated rates. The only fair thing is a flat tax. No citizen should be taxed at a lower or higher rate than another.

Flat tax. No deductions. Eliminate the need for the IRS.

So, what is more frightening? Allowing the national debt to continue snowballing or raising the age of full SS benefits eligibility, by a year?

Originally posted by saltheart foamfollower
reply to post by baddmove

 

Imagine just California, they had the $20 million for just one day of unemployment.

In two years, their pensions are going to be 5 TIMES their intake of taxation.

Oh well, where is that sandy beach? I need some sand.

and it just gets worse..

scoot over, i need that sand too..

Federal receipts didn't cause the budget deficit.

Increasing receipts won't fix the deficit.

The way to fix the budget is to radically cut spending; not radically soaking the worker-bees.

The problem with increasing the tax bite on the populace is that doing so incentive-izes crime and fraud. It also increases the benefits of graft and corruption to avoid paying the taxes. In other words, the whole plan would merely speed our descent into Banana Republic status.

It sounds like Obama's deficit commission is at least knows what needs to be done. It is going to hurt but its time to pay the piper. I would love to see a national sales tax. Then even non-citizens would be contributing and saving would be incentivized.

Now we find out who's willing to step up and do what needs to be done and who will continue to be a roadblock to recovery. From the lowliest congressman all the way to the president; I hope people hold them accountable in 2012 like they did earlier this month.

I honestly do not care which party they belong to anymore. The only issue that matters right now is fixing this debt problem and getting the old machine pumping again.

Glad to see this being reported!

The sad thing is that Congress will NEVER do even 10% of the recommendations, they would be voted out in a heartbeat. Didn't the Grace commission try to do this in the early 80's???? How'd that go?

Instead we will continue to spend far more than we take in and pay out more to people than than they ever put in........I'm sure that recipe will work ........won't it?

Just wait till boomers hit Social Security and Medicare full force.............. good luck trying to get that spoiled generation to give up any benefits. Sorry if you are offended, it's the truth.

It is all real simple.

Fix the housing mess on the homeowner side. Refinance all the mortgage sthrough a government program. Will put 20% of country back in the economy. It will increase jobs, increase taxes and will partially take care of the mortgage interest deduction as everyone will be paying less interest. I think everyone can agree that the banks just created this money, so we shouldn't feel bad about taking this biz away for them for the good of the whole economy. .

After they clean up the mortgage mess they need to institute a new minimum living wage. Should make all wages rise. Set it at a point that anticipates the inflationary effect that higher wages will have. There is a point of balance where we can raise wages and not have inflation eat through all the increased purchasing power.

Not sure why no one sees that if you help the people then the economy and country will flourish as a result. It must be that the people in power do not want to see the people and the country do well. If I'm wrong: SHOW ME THE BEEF!

reply to post by sligtlyskeptical


You would immediately kill what is left of the American economic system.

If the government refinanced every loan in the country, every bank and investor that had purchased securities based on EXISTING home loans would be cashed out. They had expected to own mortgage payments from your home for say, the next 20 years. But you as an owner have just refinanced, and so that income stream is cut off. No more interest payments.

It would have a similar economic impact of instantly closing every savings account in America and handing the current balance back to the holder.

You'd have trillions of investment dollars converted to cash, with the most popular investment vehicle no longer available to investing entities (banks), and that vehicle wouldn't come back for at least 20 years.

The inflation generated by billions of loose change would kill the dollar.

I disagree with them removing the mortgage tax deduction. That smells like a middle class tax increase to me.
Poor people don't have homes and rich people don't have mortgages.

I think I'd rather see them eliminate the Department of Homeland Security.

well..i guess there is some good news....

The entire 18-member commission is supposed to report a deficit-cutting plan on Dec. 1, but panel members are unsure whether they'll be able to agree on anything approaching deficit cuts of the size proposed. And even if they could, any vote in Congress this year would be nonbinding, Simpson said

reply to post by baddmove


And....it requires 14 of the 18 to have complete agreement before any package is actually sent to Congress. Fourteen of eighteen people probably couldn't agree on what restaurant for lunch.

Originally posted by WTFover
Fourteen of eighteen people probably couldn't agree on what restaurant for lunch.

We'll, six of them ordered the "Crab Conrad" over at The Monocle on D street before Halloween. But I think they were really just there to be seen hanging out at the bar.

reply to post by baddmove


Oh well!