Last Updated:July 29 @ 12:04 pm

Deficit Panel Offers Tough, But Misguided Medicine

By Bobby Eberle

The co-chairman of Barack Obama's National Commission on Fiscal Responsibility and Reform released a preliminary report this week that has both Republicans and Democrats grumbling. Now there are some people who would probably say that if both parties are upset about the report, it must be pretty good. However, the commissioners missed a golden opportunity to focus in and change how the federal government does business. Their recommendations amount to band-aids for a country that is bleeding to death.

Don't get me wrong, the preliminary plan does have merit, but as David Limbaugh writes in his column, taxes and spending are not a zero-sum game. Whenever the commissions propose to cut a tax, they propose to raise another one. Co-chairman Erskine Bowles and Alan Simpson have suggested simplifying the tax code and establishing three tax rates of 9%, 15%, and 23%. Corporate tax rates would be lowered as well. That's great news. Everyone pays too much in taxes, because our government is too big and spends too much. However, rather than sticking with that fundamental premise, the commissioners then propose eliminating the home mortgage tax deduction, raising taxes on capital gains, ending the child tax credit, and more.

Just to be clear, I don't think the government should be in the business of social engineering through the tax code. They should not be providing breaks for one activity (such as buying a house) or another. But these breaks should only be removed if we FUNDAMENTALLY change the tax system. Eliminate all of these social engineering tax breaks and give Americans lower tax rates (or one tax rate or the FairTax). Trading some tax cuts for other tax breaks is not a solution.

Commissioner Bowles has it right when he says, "This debt is like a cancer that will truly destroy this country from within if we do not address it." Exactly. But we got into this mess because government was allowed to grow and grow and grow. People were told that the government should "pay" for A and B and C, and the American people were lulled into saying, "OK." Now, we have unsustainable spending and debt that will bankrupt this country. We can no longer "slow the growth" of government or spending. We must cut it.

As noted in a Wall Street Journal analysis, "Overall, the plan would hold down the growth of the federal debt by roughly $3.8 trillion by 2020, or about half of the $7.7 trillion by which the debt would have otherwise grown by that year, according to commission staff. The current national debt is about $13.7 trillion." So, their "plan" keeps increasing the debt... just not by as much as before. This is NOT a solution!

James Pinkerton, in an opinion piece on FoxNews.com, hits the nail on the head by writing, "In the future, if we want to reduce the deficit, we will have to change the frame of the debate."

For example, if the economy were to grow a point or two faster over the next few decades, the deficit would become manageable, and eventually disappear. The historic growth rate of the U.S. economy, over more than two centuries, has been three percent. But in the last decade, the growth rate has been less than two percent. If that growth gap continues, we will never balance the budget.

According to the preliminary report, the federal budget would not come into balance for another 27 years --- 2037. Does it really take 27 years to balance the budget?

There are certainly tough choices that need to be made in order to get America back on track, but the commissioners seem to have taken the approach that they will get there by cutting here and taxing there. Let's change the focus... let's look at the big picture. Taxes should be cut across the board. Why? Because the rates are too high, and lower taxes will stimulate the economy by letting people and business do what they do best. Spending should be cut. Why? Because government is too big and too costly and doing too many tasks that it was not intended to do.

If we reduce the size of government and promote ways to grow our economy, then we can get out of this mess. However, it will take a debate, not on what and where to cut, but rather on the fundamental role of government. In this past election, the American people gave their first response to that question. Now the real work must begin.

++ Read the draft plan here.

VN:F [1.9.6_1107]
Rate this post:
Rating: 0.0/10 (0 votes cast)





Don't leave yet! Add a comment below or check out these other great stories:

33 Comments

  1. estrobelComment by estrobel
    November 12, 2010 @ 9:27 am

    You have made several excellent and critical points. The problem is not the rate of growth of the budget and not even, fundamentally, the existence of a massive deficit (cancer though it is). The problem is with the size and scope of government which is well beyond the worst nightmares of our founding fathers. Spending and deficits are simply symptoms of the broader problem, a government that no longer even pretends to be guided (or constrained) by the United States Constitution. The federal government does not have the Constitutional authority for the vast majority of its spending. Unfortunately, in the “tyranny of affluence” we have been lulled into allowing the slow but inexorable expansion of government guided by what “makes sense” rather than by what is Constitutionally allowed. While the jury is still very much out, the most recent election may be the first of many steps back to our Constitutional heritage of expressly enumerated (and sharply limited) federal powers.

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  2. sstellerComment by ssteller
    November 12, 2010 @ 9:38 am

    Why is it the politicians always target cut that will effect everyone else but themselves? Social Security and Medicare? In good faith they should start with eliminating their free ride for retirement and healthcare! Think of the billions that would reduce from the budget!

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  3. doug wComment by doug w
    November 12, 2010 @ 9:39 am

    Maybe it would be nice if they cut funds going to other Countries instead of always wanting to either raise taxes, cut funds for roads or cut Social Security, which by the way is our money not the Governments! Countries like Mexico should recieve 0 dollars in aid of any kind as they get our aid every day while “their” Citizens are here illegaly taking jobs from our Citizens! That goes for any Country that has Illegals here! Also any Country that has a factory from General Motors or any car Company that was involved in the Hand Out from our Government should recieve 0 aid of any kind, including Canada and Mexico since they are recieving wages that should be going to our Citizens, not theirs! Why do we continue to feed the rest of the world when people here are strugling…maybe it’s way past the time to pull the reins in and STOP! The President and his wife continue to tour the world at our expense and by the way, they don’t go together so it costs double for them to be on their luxurious vacations at our expense! If it did cost $200,000,000.00 per day for Obamas visits on this last 10 day trip as reported, then people here need to understand that is 2 BILLION dollars of our tax money spent on one of his many vacations in his two years in office! When does it stop?? We need to take care of this Country FIRST, then if and only if there is money left over we can help others! That is after we have a comfortable reserve for OUR Country before any goes elsewhere! It’s going to be to late if things don’t change now!

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  4. sstellerComment by ssteller
    November 12, 2010 @ 9:53 am

    Well said doug w. I agree with every point you make!

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  5. Liberty4310Comment by Liberty4310
    November 12, 2010 @ 9:58 am

    We’ll never get our house in order if all we deal with is the income (read taxes) side of the equation. The problem is clearly too much government spending too many dollars. Congress needs to start the process of bringing government under control by initially freezing expenditures at some previous years level, then over time, making actual reductions in the amount being spent. There are hundreds, perhaps thousands, of agencies spending money on hundred’s of thousands of projects that should not exist. Actual cuts in allocations must be made until a time when the projects, then the agencies, can be eliminated altogether.
    While the foregoing is taking place, taxes should be simplified and lowered. History has demonstrated that lower taxes lead to a more robust economy and a robust economy actually increases government revenues. The concept is simple, really. Why can’t the politicians grasp it? There are valid arguments for both the “flat” tax and the “fair” tax. I favor the latter, but either one would be far superior to what we now have. The new Congress must get the ball rolling.

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  6. JDZComment by JDZ
    November 12, 2010 @ 10:17 am

    This is a good article to discuss (thanks Bobby) because it should stir a real public debate about government at large in this country.
    It should be obvious to everyone that “government”, at all levels in this country, has grown so big and bureaucratic that it is unsustainable looking ahead. A good example at the State level is California which is going bankrupt and is on its way to becoming a ward of the federal government. Every major urban city is in financial trouble due to mismanagement coupled with more and more government expansion and taxpayer funded programs. And, we know what is happening at the federal level which is really out of control. The federal government has added 200,000 more employees in just the last two years. The three counties surrounding DC have the highest average salaries in the country, and most of these residents work for the government.
    So, for me, if we really want to attack the national debt and our operating deficits, we have to look directly at the structure and size of the workforce in our governments at all levels. The single largest cost of government is salaries and benefits of those working in government. For example, major entitlement programs like Social Security and Medicare have huge numbers of government employees that administer these programs on a day to day basis. Every member of Congress has their “staff” of people that work for them. When the Homeland Security department was formed, more people were added instead of looking at how to “reorganize” the FBI, CIA, DIA, and all of the departments involved in national security. Every time a new thought comes into vogue, a new government department is formed and people are hired. It is the nature of government. It is not in the DNA of government to “reduce” their size. If you go to work for the government, it is assumed to be a lifetime job.
    So, the point of this dialogue is that the deficit commission did not focus at all on the restructuring and downsizing of government which is where the real “low hanging fruit” is for the taking if you want to cut costs and significantly reduce the deficit both in the near-term and on a longer term basis.
    I claim that the Social Security Administration bureacracy in the government, for example, can be reduced by 30% without affecting the delivery of the services to those on social security. Private companies do this on a regular basis to stay competitive. They have to consolidate, reorganize, and find more efficient ways to do their business to stay in business.
    We need our governments to do the same thing and this is a hard pill for those working in the government to do because it will force layoffs in government. To really make an impact in reducing the size and cost of government, it will take an outside group of intelligent and experienced people with private industry experience to figure out specifically what can be done and the overall impact of making these changes.

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  7. GaudiumComment by Gaudium
    November 12, 2010 @ 10:54 am

    Cut all funds going to other Countries that are not our established allies and stop giving our tax money to the United Nations. Kick the UN out of the country and let them pay there own Socialist way. Start producing oil and oil products here instead of sending our money to Arab countries that want to destroy us! The so called Trade imbalance would be solved, When will politicians learn they cannot buy Arab friends and when will the public learn politicians love earmarks so they can buy your vote with your money while ignoring you at the same time. Roll back all government controls on the business industry and on the medical industry and recall all judges that make law from the bench. We have a Constitution that would work just fine if it were allowed to do so, thank you!
    Read more: http://www.gopusa.com/theloft/2010/11/deficit-panel-offers-tough-but-misguided-medicine.php#ixzz155Rnign1

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  8. WVFComment by WVF
    November 12, 2010 @ 10:54 am

    I think this article missed the point entirely! What was the reason for the creation of this silly grouping of political hacks? Let me answer it. It was for the sole purpose of giving Obama political cover. If you want to cut spending, do the following things. (1) eliminate the Department of Education, (2) eliminate the Department of Commerce, (3) change early Social Security retirement age from 62 to 65 NOW, and change full retirement to 70 NOW, (4) eliminate retirement and free health benefits for all elected officials going forward, (5) disallow the use of lobbyists, and (6) create term limits for all members of the House and Senate, (7) reduce the number of military bases from more than 1,000 around the world to about 500 NOW, (8) make the Bush tax cuts permanet NOW FOR ALL, (9) stop nation building by drawing down the number of troops in Irag and Afghanistan over the next three years, (10) freeze all government employee salaries for 10 years at minimum, perhaps the private sector might be caught up by then, (11) Truly tackle the fraud and abuse in Medicare & Medicaide,(12) repeal Obama Care NOW, and (13) send every illegal immigrant back to the country from which they came NOW! This is only a baker’s dozen of things which immediately come to mind. If I were on the inside and had some power, I could change this whole situation in less than a year, but I don’t, so it won’t happen. We will continue to march down the socialist path until RINOs, Left-wingers, Obama, and his socialist/Marksist administration are history.

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  9. Steve HartmanComment by Steve Hartman
    November 12, 2010 @ 11:36 am

    Talk about your shear stupidity! To start talk of removing the mortgage interest deduction right in the middle of the most serious housing crisis in recent memory does absolutely nothing to gain my faith that government really knows what its doing.

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  10. headacheComment by headache
    November 12, 2010 @ 11:52 am

    Great article WVF as well as the other postings. One thing I might add is a flat tax rate would immediately help to shrink the size of government by doing away with our bloated IRS.

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  11. mo ky fellowComment by mo ky fellow
    November 12, 2010 @ 11:55 am

    Start with cutting spending. Then continue with spending cuts and then start cutting spending.
    Stop everything that has been passed in the last 21 months, especially “Obamacare”.
    Then cut taxes and then cut taxes some more, then follow up with more tax cuts.
    Then scrap the current tax code and completely re-write it.
    ..Jim Allen

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  12. PatComment by Pat
    November 12, 2010 @ 12:09 pm

    Totally agree with those who feel this commentary is insiteful and point on. Very good and common sense evaluation of a very bad situation that those currently in power wouldn’t agree with in a millions years, because it means they would lose some of the control and power they have worked so hard to gain over the people of this country.
    I seriously think the republicans going in January 3rd, will need to bring a whole box of red pens with them, and then, once they get Obama and his crew to provide them with a budget (something they didn’t bother doing yet), I would start marking it heavily with red ink or perhaps it would be easy to circle those few things that should be allowed. They have major departments that need to go and lots of people. I think, as long as we cut the money off for some things, so it stays in the states, the governors and state legislatures can pick up the baton, along with the extra cash that will not be leaving their states, and can phase things out over time or make whatever adjustments will work for the people of their states.
    Even the board of education would be better handled at the state level (nothing says the heads of the departments can’t get together to try to make education uniform), but never again can we vest so much power in the federal government that someone like Soros can get a foothold. Authority needs to be wide spread and states need to wield the power (it’s hard to kill a snake if you can’t find it’s head).

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  13. AbbyComment by Abby
    November 12, 2010 @ 12:16 pm

    I aghree with much of what has been said. One issue I do have is the cutting salaries of all government employees. That should be true for the working class but what about the government workers that retired 20-30 years ago when their salaries were lower than the private sector?
    Those retirees have a hard time meeting their responsibilities as it is. Paying for Social Security benefits each month, buying meds, rising costs, etc. puts these old timers in the same boat as the non-governement worker.
    I do agree, however, that government can be cut back substantially. Combine the multiple bureaus doing the same function and cut back accordingly.
    We need to start from the top down versus the other direction. No matter where you start, the middle class will be hurt most. That is what government has wanted from day one.
    Not only should the illegals be sent back to their country of origin but no benefits should be provided them unless they work for them legally. Fine companies hiring illegals (even if it is through subcontracting); stop unemployment handouts — put everyone on the unemployment dole into community service of some sort to earn that assistance. As long as there are freebies, people will continue to abuse the system. who wants to go to work when they can get money and welfare and not have to pay for normal expenses of working. Doesn’t take a rocket scientist to figure that out.
    Our government has been promoting socialism for more years than we want to admit; this current president has just turned the fire up. He is doing what he beileves is right (the way he was reared and taught) and doing a fine job of it. But you know what, I don’t want to live in a socialist country, do you?

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  14. starrynightComment by starrynight
    November 12, 2010 @ 12:37 pm

    WVF, you have some good points; however, the NOW part of it is pretty impractical in most instances. Changing the age for benefits should require some notice, although would not have to be as gradual as currently proposed. They should start by eliminating the fraud, waste and abuse in the system (i.e., stop the checks going out to dead people and phony SSNs, etc). For a beneficial overhaul, I like the idea of eliminating the current income tax structure altogether and going with a fair tax preferably, or at the very least a flat tax. I think Medicare and social security should be voluntary. If you don’t pay into it, you don’t get the benefit at the end, period. I believe U.S. government workers have their own retirement system and do not participate in social security, which is a travesty; it’s mandatory for the rest of us. They force us to pay into this ponzi scheme over the course of our working lives, raiding the fund as they see fit, spending lavishly on all manner of projects not in their purview under the Constitution, then squeal about “entitlement” programs being the cause of the debt crisis. Cutting all government agencies by 10 percent across the board has been mentioned, too. Why not? I like the idea of putting a moratorium on foreign aid, especially to oil-rich countries in the Middle East. Totally politically incorrect, I also like the idea of putting a temporary moratorium on legal immigration. There’s no logical reason to have 2 million or so immigrants flooding into the country each year when we are floundering here (studies show that immigrants, overall, use more social services/funds than citizens do). Might cut back on a few “home-grown” jihadists at the same time. Have the politicians stop attaching accessory/unrelated items to major bills in order to sneak their special interests (pork) through. Institute a series of sticks/carrots for corporations to bring jobs/manufacturing back to this country (even if it means slapping some sort of tariff on goods from countries with huge trade deficits with us). We should be electing people to office who have the best interests of America in mind, not the current bunch of global elitists. And quit letting foreigners buy our elections (i.e., George Soros).

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  15. JoeComment by Joe
    November 12, 2010 @ 1:17 pm

    The idea of government creating jobs is a joke. Who is going to pay for government created job?
    This government is so stupid it is amazing they can find the toilet. If WE allow them to keep going with business as usual WE are lost.
    First get rid of these government, tax payer funded jobs and bid them to the private sector.
    Business minded people can tell you it won’t work. Why? Simple they have nothing to sell, no product, just fine’s and fee’s. I don’t go to the parks I used to love going to because they are government controlled. They charge to much (at the tax payers expence) and incourage contractors to do the same.
    It would set things straight for small business to be productive again, for government to take a back seat to the way WE do things. Give them a job, not hand outs.
    More jobs less tax and no debt. One person working and being over taxed will never solve the defict problem, but a hundered jobs with a lesser tax can. Not tax payer jobs, but real jobs that have something to sell for profit. Bring the factories back to the US.
    If WE really want to fix the problem quit relying on the politicians for the resolve, they only no how to screw the US, and know nothing about working for a living. Talking a good line isn’t what WE need. GOD BLESS AMERICA

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  16. Double AceComment by Double Ace
    November 12, 2010 @ 1:44 pm

    Misguided may be the understate ment of the century. Look I do not mind doing my part to solve the deficit/budget problem but I am sick of being the only section of society that does. If we have a serious issue then we need to stop sending money overseas in the form of foreign aid. If that doesn’t solve theproblems then start cutting domestic programs. These crooked A%% politicians always want to start with programs they know the taxpayers will object to like Social Security and Medicare. Get real stop sending money to Africa, Yemen, etc.

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  17. CRCComment by CRC
    November 12, 2010 @ 2:30 pm

    A good place to start with the deficit is making a 10% across the board cut in government spending (no exceptions) like any company would do and make the management of each agency propose a budget that would meet the goal. Then execute the plan. If they could not meet their goal, fire the management and have accountability. There a lot of folks that would love to have their jobs.

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  18. FlaJimComment by FlaJim
    November 12, 2010 @ 3:10 pm

    This collection of hoary has-beens and never-weres (none of whom are economists or even bookkeepers) assume government spending will go on unimpeded and, thus, additional taxes will be required. They never even considered the idea of spending less.
    This panel was stacked from the beginning in order to produce a distraction from the problems we face today. It’s also another example of government waste in paying these people for promoting mostly stupid recommendations. And it shows how cynical the current regime is to have this report delivered just days after major Dem losses.
    The regime knew it was going to lose the House and is only trying to use this to try to defang the new majority. It should be ignored.

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  19. rational conservativeComment by rational conservative
    November 12, 2010 @ 3:17 pm

    The defense budget is larger than Russia, Europe, China, and Japan combined. Most conservatives, talk radio included won’t hear of cutting a single dollar. Let’s start with NATO. The cold war is over. Tell Europe we’re coming home and they with a GNP bigger than our own, can defend themselves.
    North Korea is not really a direct threat to us. Bring the troops home.
    I have no interest in “empire”. Do the rest of you? I have no interest in maintaining a defense establishment to promote “regime change”. I have no interest in forcing “democracy” on other countries. Madison called democracy the vilest form of government on earth so why do I want to maintain a huge defense establishment to go out and force that on other countries?
    If conservatives aren’t willing to put defense on the table, can’t identify serious places to cut, then you all aren’t any better than liberals here.

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  20. LucyLuComment by LucyLu
    November 12, 2010 @ 3:28 pm

    Defense of this country is the one constitutional thing that our government does.
    Nearly ALL of the rest was not delegated to the federal government by the Constitution.
    Defense is the LAST item that should be cut. I have no objection to cutting waste but I will not sit still for cutting the salaries of the military. Take it from the bureaucracy.

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  21. Jota_Comment by Jota_
    November 12, 2010 @ 9:22 pm

    Government spending depresses the economy
    http://hbswk.hbs.edu/item/6420.html
    http://www3.eeg.uminho.pt/economia/nipe/docs/2009/NIPE_WP_6_2009.pdf
    This should almost be a no-brainier
    For a business to bake a cake it needs to buy flour, eggs, sugar, and an assortment of other ingredients. Which then employees wheat growers, flour mills, egg producers, sugar growers, manufactures, packaging, advertising, transportation. It causes a dollar to be circulate among many hands. The velocity (speed) this dollar circulates among the many hands is economic growth. It is about production and consumption. Government spending short circuits the system it depends upon for tax dollars. It puts more money in the hands of those consuming than those producing
    It does not matter how cheap a foreign supplier makes a product the dollar trades hands fewer times and none of the production process is taxable. We buy a cake, but the income from the process of making the cake is lost.
    Yes, it maybe cheaper to buy a cake which is foreign made but the price to produce a cake domestically as cheaply is handicapped by the added cost from government spending which favors consumption over production.
    Government spending just cuts our own throats.
    It shrinks the number of times a dollar is circulated and raises the cost of production.

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  22. PathfinderComment by Pathfinder
    November 13, 2010 @ 1:02 am

    You got it right Doug!

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  23. poorgrandchildren.comComment by poorgrandchildren.com
    November 13, 2010 @ 7:49 am

    Forget the flat tax. We tried something close to that under Reagan (3 brackets) and look where it led. The Fair Tax is the answer to taxes.
    Forget trimming the excess. Force your DC employees to defund all programs which are unconstitutional (illegal). Tea Party, speak up.

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  24. RobertRComment by RobertR
    November 13, 2010 @ 12:24 pm

    The budget needs to be cut and entire government agencies need to be closed down. We don’t need the amount of government that we have. America was PROSPEROUS in the days that it had an essential government. The entitlement and ruling nonsense has to stop. As good as the 10% idea sounds it really doesn’t work. It is time to get out the cleaver and sever complete branches if we intend to survive. Government can’t be the largest employer in America if we’re ever going to climb out of this hole. And by that I mean everything from the feds to the ‘city’ of 500! Ridiculous pension plans need to be brought into reality also. Employees need to contribute MORE to their retirements and not just hope that Uncle Sugar will take care of them on the tax payer’s dime. The way business has been done here has to completely change. Tuning it won’t stop the bleeding.
    Also agree on the NATO idea. Abolish it and call it a day. Same with the UN. The UN is a joke being run by dictatorships and thugs.
    This can be fixed. Just a matter of doing it.

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  25. RobertRComment by RobertR
    November 13, 2010 @ 12:29 pm

    Comments regarding the mortgage deduction are well meant but obviously not looking at the big picture. With the ‘normal’ deductions that are on the tax tables now the only way you achieve a mortage deduction is buying a house you really can’t afford. Eliminating it would cause people to buy homes that they can afford and the country would have a much better cash flow with people having money left to buy other things. Too many people fall for the ‘buy all the home you can afford’ because tomorrow it’ll be a ‘deal’ and automatically be worth more. Forget that nonsense. Live in a house that you can OWN not pay on forever. I paid off my last home in 12 years. It did wonders for my ability to live on a modest income. Today I live in a paid off retirement home that has ZERO payments. I have a little money left that I can spend on things I enjoy and support other parts of the economy other than ONE house.

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  26. Whilemom47Comment by Whilemom47
    November 15, 2010 @ 1:59 pm

    Isn’t it funny how life repeats it’s self! I can remember my father complaining about taxes and government spending. That was back in 1986. He stated at the time, “We need a flat tax of 10% across the board”. My father could see what the future was coming to. I have watched the government grow to an uncontrollable size. What happened to “WE The People”? Why are we letting a bunch of bureaucrats tell us what is good for us instead of doing it for ourselves? Are we so stupid that we can’t think for ourselves? We need to clean up our government! We have too many chiefs and not enough Indians. When you have too many cooks in the kitchen the soup gets spoiled. Why does the President have to have so many helpers? Can’t he decide for himself? What did he get elected for? We need to get someone who already knows how to tie his own shoes and not one who needs to be taught. All of this is a metaphor for what is causing the problem with America.
    We have always led the way and now we are letting other countries lead us. We are free thinkers and we need to do a lot of thinking for our selves. When we let others do the thinking for us then we have a problem. When others think for us we end up with their grips and concerns and not our own. Until we get our own house in order we can’t possibly have the good sense to tell others how to live or behave. If we can’t even feed our own people how can we feed others. Charity begins at home. Take care of our own people and then we can worry about others. Just my thoughts.

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  27. Whilemom47Comment by Whilemom47
    November 15, 2010 @ 2:25 pm

    I remember a comment made by a crane operator “my job is so cool, I can sit and read a book all night because all I have to do is push a button every half hour”. My thought at the time was how is that company making money by keeping this fool who only pushes a button once every half hour and reads a book the rest of the time? They weren’t. That company went broke and sold out. They are no more. Is that what is going on in DC? You bet it is! Only on a larger scale. If a man/woman really only works for about 4 hours a day and goes to the gym or golf club the rest of the day and gets paid for a full 8 hours, is that an efficient company? NO! If you don’t work 8 hours you don’t get paid for 8 hours. Big companies are just like our government. Those of entitlement are the ones who work for 4 hours and get paid for 8 hours. Just imagine if you will a company or government demanding that the whole body work for their allotted time and get paid for that time! What a concept. Sure we all want something for nothing, but what we get in the long term is people who work the system. We learn from what we see and hear. Is it any wonder that our young have no respect and run amok. Is it any wonder why people of other countries want to come here and live off our government. They see us as easy and with no rules.
    “WAKE UP AMERICA”! It is time to trim the fat from the “Fat Cats” in DC and take our country back to a time when you put in a dollars worth of work for a dollar not 2 or 3 dollars. A mans work is his worth. You can’t fix stupid. If we keep putting money into something that doesn’t work are we getting our moneys worth? NO! Eliminate the expenditures that aren’t generating more money and then and only then will we see some economic growth.

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  28. RME KRNLComment by RME KRNL
    November 15, 2010 @ 2:49 pm

    Agree with Nicholas Vay of Phoenix who said one of the first things is to eliminate the privileged retirement system of Representatives and Senators and put them into the Social Security System along with all the rest of us. Then, let’s see if they screw with it, continue to raid it as a slush fund for other government programs, and fail to “fix” it.
    A good second thing would be legislation requiring that all legislation apply equally to members of Congress as it does to the rest of us, with no exemptions or exceptions.
    And a good third thing would be term limits, in keeping with our Founders’ intent that public service be for a limited time before returning to private life.
    Instead, we’ve allowed the development of a privileged class of professional politicians. The president is term limited, so why not Congress?

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  29. OComment by O'Galley
    November 15, 2010 @ 9:45 pm

    Representatives and Senators are in fact covered under Social Security just like everyone else. They do have very generous retirement benefits on top of Social Security.

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  30. antiliberalismComment by antiliberalism
    November 16, 2010 @ 11:15 am

    There are some good ideas in the report (I skimmed through the outline). Unfortunately, it doesn’t go far enough where it really counts – entitlements. THIS is what is sinking us, fiscally. 2/3 of all taxes collected are redistributed in entitlements (I HATE that word – should not belong in the American lexicon). Cut this by 1/3, THEN see where we are.
    While some things get trimmed on the entitlement side, the mentality remains the same. There will be new SS minimums for minimum wage workers (i.e., entitlement increases – more wealth redistribution). There will be means testing for SS, as well, which means that those who paid in the most (i.e., support the system) will get less out. There is also a proposed increase in SS wage cap, which targets 90% of all income (rather than capping it at – I think – $90K, currently).
    Doing away with the mortgage interest deduction during a time when the housing market is still reeling – without revamping the entire tax code to something better (flat tax or FAIR tax) – is a bad idea, as well. The other deductions being removed are (child tax credit, pre-taxed health insurance benefits) are a wash for most, given the proposed decrease in federal IT.
    On paper, much of it looks okay. In the real world, there are some potential unintended consequences that may skew the numbers dramatically. I’m also VERY skeptical that this wouldn’t be used down the road as another tax grab. What happens when these are implemented, but they aren’t balancing the budget as projected? The tax and spenders will come out of the woodwork to suggest we lowered the federal IT rate too much. The IT rate will be raised back to where it was, and we’ll be screwed, as the tax credits we currently get will be gone – effectively increasing our taxes (on average) by 10-20%.
    If we’re going to revamp the tax code, then let’s go all the way. Let’s skim 90-95% of the existing monstrocity that is our tax code, and implement either a flat tax or FAIR tax – with NO EXEMPTIONS. Everyone pays the same %. Period. Whether you make 10K year or 10M a year, you pay a set %. While I understand that many will argue that the poor are getting screwed, I will argue that by including the poor, you ensure (politically) that the tax rate never gets too high. You have to find a balance that everyone can afford to pay. None of this class warfare nonsense, where people believe they have the right to tax one group higher on such subjective criteria as “they can afford it”. Who determined who can afford what? Why should anyone be given a bye on taxation? Aren’t we all in this together?
    I expect to be drawn and quartered for this, but it is what it is. If you want true FAIRNESS, then every US citizen pays the same %. And if you live off the taxpayers, you have no say in our society (i.e., you can’t vote until you are self-sufficent). Why should you be able to have a say in where other people’s money goes, if you have no skin in the game? I’ve never understood this.

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  31. Ci JiComment by Ci Ji
    November 16, 2010 @ 3:30 pm

    Of course you never hear them say, this is going to affect their salaries or Congresses’ retirement plam, It is always to take it away from the seniors. I think they need to rethink welfare for young twit girls that go have kids and get welfare because they can make a way of life on it,

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  32. bassmanComment by bassman
    November 16, 2010 @ 7:34 pm

    PEOPLE: Do your homework please! Social Security and Medicare are self sustaining (for now-LOL)and have NOTHING to do with the deficit. Those are not Social Security or Medicare TAXES, but rather “Retirement Accounts” and “Premiums” we pay into all our lives. Do those programs need fixed? Oh Yeah! But they have nothing to do with the deficit. That money is totaly separate from the rest. It is merely our money being doled out to us when we retire.
    It’s all the “stupid” spending that is killing us. Are the entitlement programs (Social Security and Medicare only) unconstitutional? I think so, but we’re stuck with them for at least the next generation. These people are at retirement age and many have nothing BUT their Social Security to depend on. The government actually owes those programs money, if you want to get technical. Those trusts have been raided by the government over and over throughout the years. The trusts will never see the money the government has “borrowed” over the years to use for “other,” spending, but be sure that those two “entitlement” (I hate that word for some reason) programs have nothing to do with the deficit and by cutting them you merely hurt those who depend on them and cannot possibly lower the deficit by cutting them since they are not part of the deficit anyway.
    General welfare programs are a different story. We DO pay for those via our tax dollars. But Social Security and Medicare are merely retirement accounts and health insurance premiums we paid into all our working lives.

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)
  33. AMVoterComment by AMVoter
    December 3, 2010 @ 1:10 pm

    Why are several so-called conservative republicans supporting this **** from the deficit panel?
    It doesn’t address bloated government; fraud or excesses; spending billions on illegals every year; giving billions and billions to corrupt dictators throughout the world. What about the Clinton welfare reforms that Obama dumped, they don’t advocate cutting that; or the earned income credit of giving people taxpayer money.

    VA:F [1.9.6_1107]
    Rate this comment:
    Rating: 0.0/5 (0 votes cast)

Leave a Comment





The Loft Archives

  • July 2014
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010
  • Reference Pages

  • About
  • Network-wide options by YD - Freelance Wordpress Developer