The Fiscal Cliff

[YOhio]

I can see it too. The place I don't want cuts is to education. Young people didn't make the choices that got Wall Street in trouble. Young people didn't have any say in our wars. They haven't had power, and thus shouldn't shoulder the responsibility.

The first things I'd consider would be to cut military spending. Hawks talk about taking bullets away from soldiers, but most military spending goes to fat cats in the defense industry. There are lots of R&D benefits to this spending (as there is to NASA spending) but this is the place to begin.

Next I'd look at raising the retirement age and cutting social security.

Defense cuts will help, but they need to be more strategic than an across the board cut. I do disagree with the assertion that 'most military spending goes to fat cats.' Not to say that there isn't some truth there, but it's too simplistic. The reality of our military is that it will take steel-spined politicians to aggressively pare down the size and scope of our military and it's holdings. Bases need to be closed and sold across the world to reduce annual maintenance costs, which will hurt local economies domestic and abroad. Programs need to be correlated among service branches and the government needs to emphasize commercialization with all R&D efforts. This also needs to occur in other federal agencies so R&D efforts will be mission-driven. These would be pretty unpopular decisions, but would be much more effective than a simple machete swipe on top of a budget number.

But none of that will mean anything unless there is real entitlement reform. The budget problems that America faces aren't due to an oversized military or the DOE loan program. Sure they can be trimmed on the margins, but entitlements make up over 40% of federal expenditures and are growing quickly.

[Goatnapper'96]

Defense cuts will help, but they need to be more strategic than an across the board cut. I do disagree with the assertion that 'most military spending goes to fat cats.' Not to say that there isn't some truth there, but it's too simplistic. The reality of our military is that it will take steel-spined politicians to aggressively pare down the size and scope of our military and it's holdings. Bases need to be closed and sold across the world to reduce annual maintenance costs, which will hurt local economies domestic and abroad. Programs need to be correlated among service branches and the government needs to emphasize commercialization with all R&D efforts. This also needs to occur in other federal agencies so R&D efforts will be mission-driven. These would be pretty unpopular decisions, but would be much more effective than a simple machete swipe on top of a budget number.

But none of that will mean anything unless there is real entitlement reform. The budget problems that America faces aren't due to an oversized military or the DOE loan program. Sure they can be trimmed on the margins, but entitlements make up over 40% of federal expenditures and are growing quickly.

I might not be understanding the agreement, so correct me if I am wrong but I thought the deal is that $55 billion of the $110 billion sequester cuts will go in effect after a two month delay. My understanding is the cuts are split 50/50 across DOD and social programs. I find it unlikely that the politicians will find any agreement of where to cut so the cuts will go to DOD and social programs. Hence, I think the DOD will take a $27.5 billion cut starting this year.

You are absolutely correct that our real fiscal challenge is going to be entitlement reform.

[YOhio]

I might not be understanding the agreement, so correct me if I am wrong but I thought the deal is that $55 billion of the $110 billion sequester cuts will go in effect after a two month delay. My understanding is the cuts are split 50/50 across DOD and social programs. I find it unlikely that the politicians will find any agreement of where to cut so the cuts will go to DOD and social programs. Hence, I think the DOD will take a $27.5 billion cut starting this year.

You are absolutely correct that our real fiscal challenge is going to be entitlement reform.

From what I understand the DOD is going to take a $55B-$67B in FY13 hit starting in March. It's hard to find accurate information on this stuff.

[Goatnapper'96]

From what I understand the DOD is going to take a $55B-$67B in FY13 hit starting in March. It's hard to find accurate information on this stuff.

Good. I could be wrong but while I don't think many of the politicians want to cut federal spending it is my totally unqualified opinion that Democrats tend to want to cut federal spending less than Republicans do. However, with the Republican holy grail of DOD taking a big hit, I think that is about 10% of DOD budget, that leaves the loveable Liberals squirming and without much argument to stop the Draconian cuts that are needed. They got their extra revenues, I read where today the White House is claiming this as about $73.7 billion a year or $737 billion over 10 years, so now it is time to face the hatchet. God bless America!

[Sleeping in EQ]

Defense cuts will help, but they need to be more strategic than an across the board cut. I do disagree with the assertion that 'most military spending goes to fat cats.' Not to say that there isn't some truth there, but it's too simplistic. The reality of our military is that it will take steel-spined politicians to aggressively pare down the size and scope of our military and it's holdings. Bases need to be closed and sold across the world to reduce annual maintenance costs, which will hurt local economies domestic and abroad. Programs need to be correlated among service branches and the government needs to emphasize commercialization with all R&D efforts. This also needs to occur in other federal agencies so R&D efforts will be mission-driven. These would be pretty unpopular decisions, but would be much more effective than a simple machete swipe on top of a budget number.

But none of that will mean anything unless there is real entitlement reform. The budget problems that America faces aren't due to an oversized military or the DOE loan program. Sure they can be trimmed on the margins, but entitlements make up over 40% of federal expenditures and are growing quickly.

We're not disagreeing--I'm just trying to be concise. I hope you noted I am willing to cut entitlements.

[Goatnapper'96]

We're not disagreeing--I'm just trying to be concise. I hope you noted I am willing to cut entitlements.

Do you think the DOD needs more cuts than the sequester cuts?

[Sleeping in EQ]

Do you think the DOD needs more cuts than the sequester cuts?

In all honesty, I'd have to look at the numbers before I could give a meaningful answer.

[Goatnapper'96]

In all honesty, I'd have to look at the numbers before I could give a meaningful answer.

The DOD budget runs about $660 billion a year. This cut will be about 10%. I think I can live with that cut and then either holding the budget at the cut amount or only letting it grow at an amount lower than GDP.

[wuapinmon]

From an old post on what I'm willing to do:

1. Forego my Social Security benefits. I do not plan on having anything from them when I retire. I don't mind paying the taxes so that little old widows without children wind up in group homes because they can't afford to live. Folks with money should forego theirs too. Social Security needs a means test anyway you look at it. Austerity should hit everyone. I would be willing to do this until age 60, so 21 years from now.

2. Increase medicaid taxes by 5% so that children under 18 can have basic medical care. No able-bodied adult should get free medical care from the government, myself included. I will pay my medicaid taxes, happily, if it means that children are looked after. Families need to plan to care for their elderly on their own, and not depend on the federal government to do it. It sucks, I know, but something's got to give.

3. Raise income taxes by 5%. I can give a little more, provided the increased revenue goes into repurchasing 30 year T-bills to reduce the National Debt.

4. Raise the federal gasoline tax by $.25 a gallon for the express purpose of eliminating the national debt. We gripe and complain about it, but for what it does, gasoline is CHEAP. The need for efficiency is the mother of efficiency inventions.

5. Pay a $25 tax with each new television purchase to support the Public Broadcasting system. I'll also gladly pay 25 cents a month on my cable bill to support the Ad-Council. I have lived in other countries, and we've got it so good, but we don't pay enough in taxes to cover all the good we've got. Social Security needs to die for all but the most poor. Medicare, especially Plan B, needs the axe too. If your mom gets sick, then you pay for it out of pocket. Just because there are $60k hip replacements doesn't mean that you get one just because Medicare will cover it. That's borrowed money that young people will have to pay back for you someday.

So, I ask you all, what are you willing to give up? What sacred cows in the federal budget need trimming. And don't give me the "I'm not paying anything else until spending is under control" bullshit. Between servicing the debt, defense, Social Security, and Medicare, the money's spent, yall. So, which cow gets made into sacred ground beef?

[Goatnapper'96]

From an old post on what I'm willing to do:

I think we can all accept that the middle class, which will eventually likely be defined as making less than $250,000 will not be asked to shoulder any more. Democrats have joined hands with the middle class and will eventually have a choice of joining the war the middle class will declare on the lower class or be voted out. If we are going to be serious about our deficits the making permanent of tax rates for anyone making less than $250,000 heralds a new aged of hatchet time. I applaud you for what you are willing but the President has a mandate from the middle class of "modest tax increases" to the wealthy which he is giddier than Provo High Prom queen as her dress comes off on Prom night that he got and now he must accept that his mandate is now to cut like a mofo. Perhaps the can get the tax rates increased on those making $250,000 but that will bring about another $75 billion. That still leaves about $800 billion a year left to balance the books. While I don't think anyone believes we need a balanced budget it will have to get closer than $800 billion and by then the new revenues sources will be exhausted, unless the Democrats don't want to be in power.

[frank ryan]

Defense cuts will help, but they need to be more strategic than an across the board cut. I do disagree with the assertion that 'most military spending goes to fat cats.' Not to say that there isn't some truth there, but it's too simplistic. The reality of our military is that it will take steel-spined politicians to aggressively pare down the size and scope of our military and it's holdings. Bases need to be closed and sold across the world to reduce annual maintenance costs, which will hurt local economies domestic and abroad. Programs need to be correlated among service branches and the government needs to emphasize commercialization with all R&D efforts. This also needs to occur in other federal agencies so R&D efforts will be mission-driven. These would be pretty unpopular decisions, but would be much more effective than a simple machete swipe on top of a budget number.

But none of that will mean anything unless there is real entitlement reform. The budget problems that America faces aren't due to an oversized military or the DOE loan program. Sure they can be trimmed on the margins, but entitlements make up over 40% of federal expenditures and are growing quickly.

Let's get rid of the coast guard! It is like a wimpy version of the navy anyway

[Uncle Ted]

From an old post on what I'm willing to do:

3. Raise income taxes by 5%. I can give a little more, provided the increased revenue goes into repurchasing 30 year T-bills to reduce the National Debt.

I thought you were opposed to raising taxes on all working classes (i.e. removing the bush jr tax cuts).

[byu71]

There is another bubble looming out there. Depending on what Congress and the President do the next couple of months will have a heck of a lot to do with whether the bubble is a manageable burst or one where the shit will hit the fan.

If the republicans settle for a minor spending cuts, coupled with more taxes and increased government investment (Obama's word for spending), it will be a shit hit the fan bubble burst.

It won't be a stock market or real estate bubble, but they will be effected of course.

Oh, by the way this is just my opinion and just shared for conversation purposes.

[Katy Lied]

Also, any TBills repurchased will just make the Fed print and sell more TBills.

No one will ever get the US to discipline its spending urges, only China when it refuses to buy US securities.

[wuapinmon]

I thought you were opposed to raising taxes on all working classes (i.e. removing the bush jr tax cuts).

I think you misunderstood me. I think it hurts, but I'm not opposed to it, just that the rich have less cause to complain about the pain of more taxes.