Fiscal Commission Release Eye-Popping Recommendations

Discussion in 'Economy' started by Trajan, Nov 10, 2010.

  1. Trajan
    Offline

    Trajan conscientia mille testes

    Joined:
    Jun 17, 2010
    Messages:
    29,048
    Thanks Received:
    4,751
    Trophy Points:
    48
    Location:
    The Bay Area Soviet
    Ratings:
    +4,756
    this is not the final report, its Simpson And Bowles wish list, it doesn't appear that they have the 14 votes needed to get this through even if it was......comments?




    * Index the retirement age to longevity -- i.e., increase the retirement age to qualify for Social Security -- to age 69 by 2075.
    * Index Social Security yearly increases to a lower inflation rate, which will generally mean lower cost of living increases and less money per average recipient.
    * "Increase progressivity of benefit formula" -- i.e., reduce benefits by 2050 for middle, and, especially, higher earners, relative to current benefits.
    * Increase the Social Security contribution ceiling: while people only pay Social Security taxes on the first $106,800 of their wages today, that's only about 86% of the total potentially taxable wages. The co-chairs suggest raising the ceiling to capture 90% of wages.

    Tax reform:

    * The co-chairs suggest capping both government expenditures and revenue at 21% of GDP eventually.
    * In their first plan, called "The Zero Plan," they suggest reducing the tax brackets to three personal brackets and one corporate rate while eliminated all credits and deductions. Without any credits or deductions (including the EITC and mortgage interest deductions), the 3 tax rates would be 8, 14 and 23 percent.
    * In their second plan, they would increase the personal deduction to $15,000, create 3 tax brackets (15, 25 and 35%); repeal or significantly curtail a number of popular tax deductions (including the state and local deduction and the mortgage interest deduction); and eliminate other tax expenditures.
    * The third plan would force Congress to undertake comprehensive tax reform by 2012 by raising taxes for each year Congress fails to act.
    * All their proposals limit Congress to collecting taxes on income made within the United States, reducing or eliminating taxes on American expats and revenues companies earn abroad.
    * They also suggest raising the federal gas tax by 15 cents per gallon.

    Medicaid/Medicare cuts

    * Force more low-income individuals into Medicaid managed care.
    * Increase Medicaid co-pays.
    * Accelerate already-planned cuts to Medicare Advantage and home health care programs.
    * Create a cap for Medicaid/Medicare growth that would force Congress and the President to increase premiums or co-pays or raise the Medicare eligibility age (among other options) if the system encounters cost overruns over the course of 5 years.

    Discretionary spending cuts

    * Eliminate all earmarks.
    * Eliminate the Office of Safe and Drug-Free Schools.
    * Freeze federal worker wage increases through 2014; eliminate 200,000 federal jobs by 2020; and eliminate 250,000 federal non-defense contractor jobs by 2015.
    * Eliminate subsidized student loans, in which the government makes interest payments while the student is in school.
    * Establish co-pays in the VA medical system and change the co-pays and deductibles for military retirees that remain in that system.
    * Eliminate NASA funding for commercial space flight.
    * Require the Smithsonian museums to start charging entrance fees and raise fees at the national parks.
    * Eliminate funding to the Corporation for Public Broadcasting -- which many conservatives suggested in the wake of the firing of former NPR contributor Juan Williams.
    * Reduce farm subsidies by $3 billion per year.
    * Create a Committee to eliminate unnecessary programs to the tune of $11 billion by 2015.
    * Merge the Department of Commerce and the Small Business Administration and cut its budget by 10 percent.
    * End "low-priority" Army Corps of Engineers programs to the tune of $1 billion by 2015.
    * Cut the State Department's overseas budget by 10 percent by 2015; reduce the proposed foreign aid budget by 10 percent in 2015; and cut voluntary contributions to the United Nations by 10 percent in 2015.
    * Eliminate the Overseas Private Investment Corporation, which provides subsidized financing and political risk insurance for U.S. companies' investments abroad.
    * Cut $900 million in fossil fuel research funds.
    * Force airlines to increase their contributions to airline security costs and allow them to increase per-ticket security fees.

    Defense spending cuts:

    * Double the number of defense contractor positions scheduled for elimination from 10 percent of current staff augmentees to 20 percent.
    * Reduce procurement by 15 percent, or $20 billion.
    * Eliminate the V-22 Osprey program.
    * Cancel the Marine Corps' Expeditionary Fighting Vehicle program.
    * Halve the number of F-35 Joint Strike Fighters in favor of F-16s and F/A-18Es.
    * Cancel the Marine Corps F-35 program.
    * Cancel the Navy's Future Maritime Prepositioning Force.
    * Cancel the new Joint Light Tactical Vehicle (JLTV), the Ground Combat Vehicle, and the Joint Tactical Radio.
    * Reduce military forces in Europe and Asia by one-third.
    * Send all military children based in the U.S. to local schools.

    The report also recommends tort reform as a way to reduce Medicare and Medicaid expenditure

    Fiscal Commission Co-Chairs Simpson And Bowles Release Eye-Popping Recommendations | TPMDC
     
  2. loosecannon
    Offline

    loosecannon Senior Member

    Joined:
    May 7, 2007
    Messages:
    4,888
    Thanks Received:
    263
    Trophy Points:
    48
    Ratings:
    +264
    It's a start but I am beginning to think that SS and medicare should be phased out instead. And I would actually prefer deeper cuts in domestic and military spending along with a 35% capital gains tax and of course the all important 100% death tax.
     
  3. Revere
    Offline

    Revere BANNED

    Joined:
    Jan 23, 2010
    Messages:
    7,427
    Thanks Received:
    415
    Trophy Points:
    0
    Location:
    Watching you in my profile page
    Ratings:
    +415
    What claim does government have on your private property when you die?
     
  4. loosecannon
    Offline

    loosecannon Senior Member

    Joined:
    May 7, 2007
    Messages:
    4,888
    Thanks Received:
    263
    Trophy Points:
    48
    Ratings:
    +264
    I would love them to claim all of it.

    See I oppose taxation entirely, but that one tax, the one on the dead, whose rights have somewhat "expired" would offset a huge volume of taxes on the living. You know, those folks who can actually spend money.

    What right does anybody have to immortal wealth? None.

    But if it was up to me there would be absolutely no taxes at all on the living. Just the death tax and user fees. And of course a few more government run businesses that are vital to national security. Like banking, military contracting, transportation, energy, insurance, medicine and education.

    But no taxes on the living whatsoever. Not a dime, never, no matter how rich they are.

    It's like the Bill Gates, Warren Buffet meme: You can make a LOT of money, but you can't keep it. Spend it or lose it.
     
  5. Revere
    Offline

    Revere BANNED

    Joined:
    Jan 23, 2010
    Messages:
    7,427
    Thanks Received:
    415
    Trophy Points:
    0
    Location:
    Watching you in my profile page
    Ratings:
    +415
    That's silly. Buffet is giving money away hand over fist to avoid the eventual death taxes.
     
  6. Revere
    Offline

    Revere BANNED

    Joined:
    Jan 23, 2010
    Messages:
    7,427
    Thanks Received:
    415
    Trophy Points:
    0
    Location:
    Watching you in my profile page
    Ratings:
    +415
    So government takes your home from your family if you die?

    They have some claim on that?
     
  7. loosecannon
    Offline

    loosecannon Senior Member

    Joined:
    May 7, 2007
    Messages:
    4,888
    Thanks Received:
    263
    Trophy Points:
    48
    Ratings:
    +264
  8. loosecannon
    Offline

    loosecannon Senior Member

    Joined:
    May 7, 2007
    Messages:
    4,888
    Thanks Received:
    263
    Trophy Points:
    48
    Ratings:
    +264
    In my fantasy scenario there would be a legal exclusion for a single home up to a certain value threshold. But I don't know if I was being romantic or practical when I reached that conclusion.

    The bottom line is that if you can pay all of your taxes when you die it won't hurt even one tiny bit. But it hurts a great deal to have to pay taxes while you are alive.

    I realize you won't embrace any idea that violates the talking points that your trainers spoon feed you with.

    But if you were capable of thinking about it it makes a lot more sense to tax people after they are dead than while they are alive. And there is nothing that prevents that tax from being 100% except people's quest for economic immortality that they have no right to.

    The concept is simple: you can make all the money you want, but you can't keep it. Spend it or lose it.
     
  9. Revere
    Offline

    Revere BANNED

    Joined:
    Jan 23, 2010
    Messages:
    7,427
    Thanks Received:
    415
    Trophy Points:
    0
    Location:
    Watching you in my profile page
    Ratings:
    +415
    Not quite. The tax deductions for charity while alive have been eviscerated.
     
  10. Revere
    Offline

    Revere BANNED

    Joined:
    Jan 23, 2010
    Messages:
    7,427
    Thanks Received:
    415
    Trophy Points:
    0
    Location:
    Watching you in my profile page
    Ratings:
    +415
    So you merely substitute your means test for the current ones.

    Keep the house but cough up the means to handle its upkeep.
     

Share This Page