Here is the problem; voters are not going to support immediate cuts to SS and/or Medicare. I don't care if we are about to go over a cliff, voters are not going to support it. That means cuts must be made in discretionary spending. But again, those cuts are going to be somewhat limited. The only really big cuts that can be made immediately are in Defense spending, and that is going to take a complete change in philosophy as to our role in the world. If we can agree that we can no longer afford to police the entire crazy world, then we can cut defense spending almost in half.
Agree 100%. But addressing the rest of the budget is going to take the same fundamental change in philosophy.
As for long term spending, Ryan is correct about going after Medicare first. My only problem with his plan is that it is going to leave tens of millions of retirees with little or no healthcare coverage. And the biggest problem with that is that the government will just end up stepping back in to fill the void, so the end savings will be zilch. The only true way to address long term costs in Medicare and SS is to raise the retirement age. And last of all, to reduce the overall deficit now, we have to raise taxes.
What about grandfathering it out instead? I would apply it to both medicare and SS. If you are x years old you will still get both. If younger people need to understand it is not government job to plan for your future. Then we allow SS and medicare to only be used by those that truly need it. One would be required to show a need just like unemployment insurance now perhaps. Since only those that need it will use it, that ought to reduce the tax burden on everyone else.
When you really start looking at what can be cut and when, it leads to the simple conclusion that we have to increase revenue. And doing so isn't such a terrible thing when you consider that we have the lowest tax rates in over 60 years. It's time for some realistic discussion or we will never see a balanced budget or anything close to one.
Maybe, I'm just extremely leary about giving government an excuse to take in more money. Everyone knows how government budgeting works. Whatever government budgets for program x, program x better damn well spend or they'll get less next time. Personally I believe it's government that needs to make the biggest sacrafice. I just don't see where the incentive is going to be to spend less if we increase how much money we give them. I don't have much faith that the extra money we would provide is going to go directly to paying down the debt. Past behavior is the best predictor of future behavior and paying down the debt has clearly never been a real priority.