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  • The Obama Debt Commission: Too Much Taxes, Not Enough Cuts

    President Barack Obama’s 18 member National Commission on Fiscal Responsibility and Reform (commission) just voted 11-7 in support of the commission’s official report. This is three votes short of the 14-vote mark President Obama said would be needed before the report could be sent to Congress.

    While the commission deserves credit for addressing this problem, the report contains far too many tax hikes, and far too little spending cuts to be a workable solution. The Heritage Foundation’s Brian Riedl critique of the report mirrors the one made by Rep. Paul Ryan (R-WI) in the video at right. Riedl writes:

    Expanding spending—not declining revenues—drives America’s long-term deficits. Even if all tax cuts are extended, revenues will soon slightly exceed their historical average of 18 percent of the economy. Federal spending—rising from its historical average of 20 percent of the economy to a projected 26 percent by the end of the decade—is the moving variable.

    Overall, the fiscal commission would raise taxes by $3.3 trillion over the decade. Yet it recommends only minor tweaks to a broken health care system, fails to repeal Obamacare, and focuses Social Security reform too far on the tax side. Discretionary spending is the only source of significant first-decade spending restraint.

    Surely larger entitlement savings are expected in future decades, yet much more can be done sooner. Lawmakers examining the commission report should demand stronger entitlement reform—particularly in health care, with a plan by Representative Paul Ryan (R–WI) and economist Alice Rivlin as the model[6]—and not settle for a plan that leaves the highest sustained tax burden in American history.

    Posted in Obamacare [slideshow_deploy]

    6 Responses to The Obama Debt Commission: Too Much Taxes, Not Enough Cuts

    1. LibertyAtStake says:

      Spot on. Leviathan has enough food in its' bowl (that is, "revenue"), it is now time to curb its' appetite (that is, "outlays"). It's good that the man who will write the plan that matters (Congress's), Rep. Ryan, seems to agree with you and I. For a permanent fix, I like a constitutional amendment limiting each year's federal budget to a ceiling percentage of the most recently measured GDP.

      http://libertyatstake.blogspot.com
      "Because the Only Good Progressive is a Failed Progressive"

    2. George Colgrove, VA says:

      We need to maintain 2008 tax rates with the eye on reducing taxes on those who are paying taxes within two years.

      Over the next two years, we need to phase out the "refund" program where people get more money back than they paid in. First, figure the base tax owed – then apply the credits. The result of this subtraction should be no less than zero dollars. Then determine your refund based on that amount. If you owe $2,000 and you paid $1,000 and your credits are $3,000, your refund should only be the $1,000 you already paid in. Currently you get a refund of $2,000. This is a pointless cost to society and represents redistribution and nothing more than a welfare check. The IRS should only be a collection agency, not a redistribution agency.

      2010 receipts to the federal government is estimated to be 11% less than 2009. This is based on 2009 income which has been reported to be less than 2008. 2010 income has also gone down. This means 2011 receipts will be down as well. If we keep things as they are there is little to suggest 2012 will be any different. We cannot count on tax revenue for funding the bloated federal government. Receipts are on a negative curve.

      We need to cut. There was a 33% shortfall in receipts for the 2010 budget. This means we need to cut the federal government for 2011 from federal office to federal office 33% to stop the debt from growing. This has to happen now. Not spread over years. The American people ARE sacrificing. It is time the District of Columbia starts the process. It is likely that in 2012 we will need to cut even more to compensate for the shortfall that will be experienced in 2011. And then again in 2013. The 33% cut means we keep the debt at a level basis. This will not be sustainable. We will need to cut more to start reducing the debt.

      The only exception should be the war and military ground efforts. SOLDIERS and the war effort shoudl not see a decrease in their funding. This is not to say that the Department of Defense is safe from cuts. The Pentagon federal workforce and non-military programs should be simplified, cut or relocated elsewhere in the federal government to compensate for not cutting the military (i.e. soldiers/war effort). There is a lot of bureaucracy and administrative duties being done in the Pentagon that has nothing to do with aiding the war effort.

      We need to make Social Security and MC/MC as efficient as we can. We need to consolidate all common functions between departments and agencies. We need to make a single HR department for the federal government and consolidate the federal pay system into a single function to be relocated in the GSA. Once these consolidations are completed, these need to be privatized or contracted out to the private sector. These duties are not governmental and need not be done by the very expensive federal workforce.

    3. Bobbie says:

      I don't believe the president has the intelligence to think beyond his own words.

    4. Jason Miles says:

      My suggestions: Eliminate all federal taxes and replace them with a flat sales tax, eliminate the IRS, TSA (private security), and many other goverment agencies with reduntant responsibilities, eliminate all overseas trip by goverment employees including the President which have proven to be a waste of taxpayer dollars – fly commercial when trips are needed, pull all American forces out of all foregin countries – we are not the police force for the world, have the President and every member of Congress recite the Constitution since they all seem to have forgotten the true meaning and purpose.

    5. Pingback: Tweets that mention The Obama Debt Commission: Too Much Taxes, Not Enough Cuts | The Foundry: Conservative Policy News. -- Topsy.com

    6. Pingback: The Obama Debt Commission: Too Much Taxes, Not Enough Cuts | Big Propaganda

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