Bi-Partisan Consensus: We’re Screwed

What if:  In January, a new Republican Congress is sworn in. First up on the agenda? A bi-partisan report stating that Congress must enact the most draconian tax increases and entitlement cuts in history or face total economic collapse.

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That’s the scenario developing.

President Obama appointed a bi-partisan commission to make recommendations about the US government’s debt.  The commission will not report out until after the November 2010 elections, but the leaders—Republican Alan Simpson and Democrat Erskine Bowles–have given some warning about what we can expect. Here are some of the frightening highlights:

  • “This debt is like a cancer” Erskine Bowles
  • Federal revenue—the sum of all taxes and fees— “is completely consumed by three programs: Social Security, Medicare, and Medicaid.”
  • “We cannot grow our way out of this” Erskine Bowles.
  • Neither Bowles nor Simpson is confident that any measures will prove successful
  • "I don’t know that I ever heard a gloomier picture painted that created more hope for me”—Arkansas Governor Mike Beebe
  • Your personal debt obligation—the amount Congress charged to your Social Security Number—is over $47,000 and growing daily. And “you” is every American, born today or 100 years ago.

Among the ideas being tossed around:

  • Reduce or eliminate the home mortgage tax deduction
  • Raise the Social Security age to 70
  • Means tests for Social Security benefits
  • Means tests for Medicare

The irony, of course, is that 100 percent of taxes go to three entitlement programs prohibited by the Constitution. Either we begin a long-term phase out of those programs, or we face a horrific and prolonged depression.  Half the population cannot continue to live off the other half.

What do you think about giving up your home mortgage deduction to pay for wild government spending? Speak out in the comments section.

3 thoughts on “Bi-Partisan Consensus: We’re Screwed

  1. To POTUS and other opponents of capitalism in Congress:

    My husband & I are tired of working HARD to support our family and acquire wealth while this administration is working HARDER to accuse us of “hating the poor, racial prejudice, and being greedy”…just because we DON’T want to support the 47% of people who don’t work and DON’T PAY ANY Federal Income Tax!

    Here it is from the President’s recent appointment to head up Medicare, Donald Berwick, “Any health care plan that is just, equitable, civilized, and humane, must…must…redistribute wealth from the richer among us to the poorer and less fortunate. Excellent health care is by definition…redistributional.”

    The decision as to when, where, and to whom we ‘spread the wealth” belongs to WE THE PEOPLE, not the Federal Government.

    We’re working with other principled Patriots to re-establish the INDIVIDUAL rights of man granted by Almighty God…LIFE, LIBERTY, AND THE PURSUIT OF HAPPINESS.

  2. How about giving up home mortgage deductions and NOT financing wild government spending? How about giving up ALL tax deductions in return for fiscally sound government? Real solutions are unpopular and why political democracy is a runaway train on a short track.

    Don’t complain. Don’t comply.

  3. I’m one of those old folks collecting Social Security; my children are rapidly — too rapidly to suit me — approaching SS eligibility; some of my grandchildren are already paying into the “Ponzi scheme” as you say; hopefully, my great-grandchildren will NEVER be forced into it.

    The SS system was perking along just find until some greedy politicians raided the trust and put those funds into general revenue. Perhaps, as you say, Bill, smaller families killed the goose that laid the golden egg.

    No matter, I say shut her down (preferably using your formula), but I’d be willing to consider reduced — not eliminated — benefits to help bring this country back on her financial feet.

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