Now that the 111th Congress is back in session (starting today) in what is traditionally called a lame duck session, it will be interesting to see what gets done, if anything.
I’m certain Representatives and Senators from both sides of the aisle will address the Debt Commission’s draft and the proposed cuts that the chairman and co-chair of the Debt panel recommended.
Listed below are some of the programs that chairmen Erskine Bowles and Alan Simpson suggested be cut to save money and or reduce the deficit:
AOL News
The draft report from the chairmen of the bipartisan presidential debt commission to reduce the national deficit through deep spending cuts and tax increases took months to piece together. It took mere minutes for partisans on the left and right to pull it apart.
Amid the many proposals in the 50-page draft proposal, these stand out for their potential as political poison:
1. Cut Social Security. Younger workers, current retirees and wealthier seniors would, respectively, have to work longer, go without annual cost-of-living increases and see their benefits means-tested. Liberals pounced on this idea, along with …
2. Increasing cost-sharing for Medicare. If seniors were mad about health care reform, wait till they hear about this.
AARP was quickly out of the box with a statement saying that “the last thing we should be considering is targeting the guaranteed, inflation-protected Social Security benefits that millions of Americans count on every day,” adding that it was “deeply concerned” about “shifting health care costs onto seniors.”
Speaker of the House Nancy Pelosi called the proposed changes “simply unacceptable.” AFL-CIO President Richard Trumka was more colorful. He said the chairmen “just told working Americans to ‘drop dead.’ “
3. Pentagon cuts. Defense Secretary Robert Gates launched his offensive to cut spending last May, but his plan calls for reinvesting the savings for new ships, fighter jets and other weapons systems. The commission’s goal to slash $100 billion would mean fewer new toys for the military. Tea party Republicans appear on board with across-the-board cuts that would include defense, but that might mean breaking the GOP’s Pledge to America, which calls for “a robust defense” that includes full funding for missile defense.
4. Three-year military pay freeze. Happy Veterans Day. If cutting weapons systems is tough, freezing military pay in wartime is a political minefield few politicians are likely to traverse. As Army Times put it, this one is “the most eye-opening military-related recommendation in the report.”
5. Limit or eliminate mortgage interest tax deduction. The hugely popular perk is tied to what some consider the American dream of homeownership. Even though it would be coupled with dropping the top tax rate from 35 percent to 23 percent, the housing and construction industry and groups like the Mortgage Bankers Association are unlikely to give this one up without a fight.
6. Eliminate the child tax credit. Both Republicans and Democrats like these credits. After all, what’s more family-friendly than giving a tax break for every kid you have? It’s not exactly like attacking Mom and apple pie, but this one could come close.
7. Hike federal gasoline taxes by 15 percent. Republicans don’t like taxes, so expect them to slam the brakes on this one. The conservative Americans for Tax Reform helpfully estimated the average weekly fill-up for a 15-gallon tank would go up $117 more per year. This one may stay in neutral.
8. Limit charitable deductions. Nonprofit and philanthropic groups worry that reducing the tax benefits of giving will persuade many givers to begin — and end — their charity at home.
9. Cut farm subsidies by $3 billion per year. Barack Obama, an urban guy from Chicago, floated a similar idea soon after taking office. Not surprisingly, it has laid as fallow as a cornfield in winter, thanks to bipartisan pressure from farm state lawmakers and the powerful agribusiness lobby.
10. Eliminate earmarks. A great campaign talking point that perennially collides with political reality. Senate Minority Leader Mitch McConnell, R-Ky., whose ability to filibuster legislation has grown with his caucus, opposes ending pork barrel spending. He says it doesn’t add up to even a slice of bacon in the whole hog that’s the federal deficit.
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