Suggestions for how to reduce spending, balance the budget, and pay off the deficit

[BeachSiO2]

Breaking news from the AP

Leaders of a bipartisan deficit commission appointed by President Barack Obama proposed cutting the annual cost of living increases for Social Security, the Associated Press reported.

I wonder how well that is going to go over...

 

[GoodWitch58]

You are absolutely right. But let's challenge the premise. Why should we have the Federal Government distribute funds at all?

For example, transfer all responsibility for roads to the states, and let them keep the federal gas tax generated in their state. No earmark problems, to Bridge To Nowheres, states keep their own roads up, no Museums To Benefit Senator Standing, etc.

If you want, shutter the Department of Education, along with repealing all unfunded federal education mandates, like No Child Left Behind. Reduce the federal tax rates, let the states keep their money.

Bold solutions are needed. We don't have much time. We've added 5 Trillion Dollars of debt over the past fives years, we need to take the money and spending out of the federal government's hands.

And so you would end up with 50 independent countries..instead of the United States.

 

[scooterbug44]

The most costly road projects are typically bridges that span the rivers dividing states or large road systems like interstates, so that doesn't work.

I do like the idea that a percentage of each state's gas taxes go to them to distribute as they see fit. Say 25% goes to federal, 75% goes to state.

Breaking news from the AP



I wonder how well that is going to go over...

The guys in charge are joking they will have to join the witness protection program.

This is what the voters supposedly asked for - and now they don't like the reality of what it means.

The majority of it sounds very reasonable - and a lot of it includes ideas we have been discussing.

Raising the age for Social Security, change how the cost of living is calculated, reduce SS payments to those who are well off, cuts in farm subsidies, cuts to Pentagon budget, reduce foreign aid, and increasing the gas tax.

http://www.msnbc.msn.com/id/40111748/ns/politics-more_politics/

 

[Matt J]

The most costly road projects are typically bridges that span the rivers dividing states or large road systems like interstates, so that doesn't work.

I do like the idea that a percentage of each state's gas taxes go to them to distribute as they see fit. Say 25% goes to federal, 75% goes to state.

You might want to look into the Florida Gas Tax. It's not a Federal only tax. In fact your division is almost how it works currently. Some Metro areas have higher taxes for local road projects as well.

The state could save money by removing some of the ridiculous exemptions:

FL Dept Rev - Fuel Taxes

Diesel fuel used for off-road or other exempt purposes.
Diesel fuel used by motor coaches during idle time.

You can actually get refunds on the tax for these. :shock:

 

[Bob Wells]

according to the Center for Resonsive Politics Personal Finance Disclosure | OpenSecrets there are 237 millionaires in Congress.
If we are talking "small cuts" then, we could start with having each member of Congress pay for their Health Insurance the same way everyone else does. Most companies/organizations pay a portion of the insurance premium; the employee pays the rest.
Is there any reason the taxpayers should be paying for members of Congress health benefits? I don't think so. I have no idea how much money this would come to; but, I think it would send a strong message if the people demanded their elected officials to share in the cost of their own (and their families) health care.

I don't have a huge problem with that.

 

[Bob Wells]

FF2, as I was saying, and beachsio2 is saying, cutting earmarks doesn't cut the budget. It only removes particular politicians from saying how the money is spent.

But if no earmarks are allowed, then no politician gets to decide how any money is spent. Example, if you want a museum and the citizens want the Feds to fund it but there are rule forbidding anyone from Congress from placing in the budget then thats money saved. In my mind this seems simple.

 

[30ashopper]

Today the folks heading up Obama's debt commission released preliminary information on what they are going to propose:

U.S. Debt Proposal Would Cut Social Security, Taxes, Medicare - Bloomberg

 

[scooterbug44]

I don't have a huge problem with that.

Only thing I can think of is the health insurer somehow coercing them or giving members of Congress a deal.

The IRS or some other oversight group can easily solve that.

 

[30ashopper]

More details from WaPo:

Deficit panel leaders propose curbs on Social Security, major cuts in spending, tax breaks

 

[scooterbug44]

More details from WaPo:

Deficit panel leaders propose curbs on Social Security, major cuts in spending, tax breaks

Sounds pretty good so far:

"The plan would squeeze another $100 billion a year out of the tax code through a comprehensive strategy that would eliminate all of the expensive and popular deductions known as tax expenditures. The would include tax breaks for mortgage interest and employer-provided health care and special rates for capital gains and dividends.



While some of the cash would be dedicated to deficit reduction, some would go toward an overhaul of the tax code that would lower rates for most taxpayers and eliminate the unpopular alternative minimum tax. The six current tax brackets would be replaced by three brackets with rates of 8 percent, 14 percent and 23 percent. The corporate tax rate, currently the highest in the industrial world at 35 percent, would be reduced to 26 percent.



The plan leaves in place a vast expansion of health-care coverage enacted under Obama's new health law, rejecting Republican calls to repeal "Obamacare." Instead, it would strengthen the cost-cutting mechanisms in the law that seek to squeeze savings from Medicare. And it would permanently protect doctors from a sharp scheduled cut in Medicare payments in exchange for other forms of payment reform and cost-sharing. The plan would also offer doctors new protection from malpractice lawsuits."