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rosco 357


Veteran
Debt commission chiefs give gloomy fiscal outlook

By Dan Balz
Washington Post Staff Writer
Sunday, July 11, 2010; 12:40 PM
http://www.washingtonpost.com/wp-dyn/content/article/2010/07/11/AR2010071101956_pf.html

BOSTON -- The co-chairs of President Obama's debt and deficit commission offered an ominous assessment of the nation's fiscal future here Sunday, calling current budgetary trends a cancer "that will destroy the country from within" unless checked by tough action in Washington.

The two leaders -- former Republican Senator Alan Simpson of Wyoming and Erskine Bowles, White House chief of staff under former President Bill Clinton -- sought to build support for the work of the commission, whose recommendations due later this year are likely to spark a fierce political debate in Congress.

"There are many who hope we fail," Simpson said at the closing session of the National Governors Association meeting. He called the 18-member commission "good people with deep, deep differences" who know the odds of success "are rather harrowing."

Bowles said that unlike the current economic crisis, which was largely unforeseen before it hit in the fall of 2008, the coming fiscal calamity is staring the country in the face. "This one is as clear as a bell," he said. "This debt is like a cancer."

The commission leaders said that, at present, available federal revenues are fully consumed by just three programs: Social Security, Medicare and Medicaid. "The rest of the federal government, including fighting two wars, homeland security, education, art, culture, you name it, veterans, the whole rest of the discretionary budget is being financed by China and other countries," Simpson said.

We can't grow our way out of this," Bowles said. "We could have decades of double digit growth and not grow our way out of this enormous debt problem. We can't tax our way out . . . The reality is we've got to do exactly what you all do every day as governors. We've got to cut spending or increase revenues or do some combination of that."

Bowles pointed to steps taken recently by the new coalition government in Britain, which also faces an acute budgetary problem, as a guide to the formula the commission might use in its recommendations. That would mean about three-quarters of the deficit reduction would be accomplished through spending cuts and the remainder with additional revenues.

Most Republicans in Congress are opposed to any tax increases, which has made the work of the commission far more difficult. Bowles and Simpson appealed for support to the governors, who have been forced by their states' constitutions to balance their budgets by deep spending cuts and in many cases tax increases.

Bowles and Simpson said the commission would have had a stronger hand politically had it been created by Congress, rather than through an executive order. Simpson was pointed in his criticism of seven Republicans who once had co-sponsored such a measure but who helped block it the Senate.

"As far as I can discern it was to stick it to the president," Simpson said. "That's where we are in Washington." He later added that all of seven "have now come to us to say we're ready to help."

The presentation by Simpson and Bowles, which included repeated statements of determination to produce a bipartisan set of recommendations, drew praise from the governors.

"I don't know that I've every heard a gloomier picture painted that created more hope for me," said Gov. Mike Beebe (D-Ark.).

Gov. Chris Gregoire (D-Wash.) said that many governors fear that the commission's recommendations will result in more demands on the states.

Bowles, who noted that the 1997 balanced budget agreement between the Clinton White House and the Republican-controlled Congress included many provisions that put more burdens on the states, said that wasn't likely.

"I don't think you're going to see a lot of devolution coming from us because the states are all broke," he said.

Simpson also warned that the November elections could add another wild card to the work of the commission. "I have no idea what's going to happen on election day but it's going to be disruptive . . . ," he said. "It's going to be a big wake up call around the whole United States. I have no idea where it's going, but thank heaven we have a month then to work through the wreckage."

gypsy


Moderator
My evaluation of this, is Republicans do not want any tax raise because it would affect the rich,haven't you realized,the Republicans want only rich/poor in this country! they have never been,will never be for the working class of people.or to help the poor, that is why they fought against medicare,social security, and health reform~~Wake up People!

SSC


Admin
It is not just Repubs. against increased taxes many Dems are jumping the fence as the Obama administration has spent this country into a massive debt never seen before in any administration.
Taxation has driven jobs out of the country and will send more packing. This country is in a down spiral with no hope of stabilizing until control is put on Obama. You can't keep writing checks when the bank is empty.

rosco 357


Veteran
some ppl at work are taking money out of retirement stocks and putting it into gold, so far they have done well, one guy reads alot. he is young, but smart,this has nothing to do with the debt, just something i posted. im still buying stocks when the market is down i get more for my money, its my 401 my hope is when i do retire, the market will be on the upswing, but still a 401 is a good deal, my work matches half, and i get a tax break which i really need, because i pay alot of taxes.

rosco 357


Veteran
SSC wrote:It is not just Repubs. against increased taxes many Dems are jumping the fence as the Obama administration has spent this country into a massive debt never seen before in any administration.
Taxation has driven jobs out of the country and will send more packing. This country is in a down spiral with no hope of stabilizing until control is put on Obama. You can't keep writing checks when the bank is empty.

i hope the bush tax breaks that are to expire, will be extended, mainly the 15 percent part that was changed to 10 percent that one helps everyone but the middle class, and poor recognizes more of a break from it than the rich, but it helps everyone that make over the threshold it stops at, in that bracket, my top bracket goes into the 25 percent range, thats why i dont care to work much overtime. the writing checks on government money they keep printing is why ppl are putting money into gold.

gypsy


Moderator
my reply! nothing Bush proposed helped anything/ maybe it helped the Big oil!!

really bush taxes helped what??:

SSC


Admin
401's are ok, alot of people I know are like your friend pulling them out to buy up gold, it sits over a thousand an ounce right now. If Obama doesn't reinstate the tax breaks the gov. will have to cover another 6.7 billion in debt, another check on a China bank I guess.

rosco 357


Veteran
gypsy wrote:my reply! nothing Bush proposed helped anything/ maybe it helped the Big oil!!

really bush taxes helped what??:

your in over ur head on this one, the first bracket being extended to stay 10 percent and not go back to the old 15 percent, would help me and anyone that works pays in the first bracket,and then into the next brackets, unless, they dont pay any taxes, half the ppl in the US dont pay any taxes at all as has been stated on the news, ppl mainly i guess that dont make much and have so many tax breaks from kids,,, and the earned income credit, the same law that will expire congress will work on, it does give the rich a few percent less that will expire, the one i think they are most concentrating on is the first bracket. which is good, for everyone.if it expires im hurt, and anyone that works, and makes a fair amount, especially ppl without any of exemptions, i do my own taxes, trust me the democrates want the first bracket to not expire and want to extent it, putting oil into the bottom tax brackets is stupid, take off ur blinders,

9 LOL on Mon Jul 12, 2010 2:23 am

gypsy


Moderator
restructure//love it good in over my head?? that makes me laugh

rosco 357


Veteran
gypsy wrote:restructure//love it///it is good

go to bed, u will be more clear headed in the morning and make more sense..i have a new movie to watch,

gypsy


Moderator
kiss off !! I laugh! is this for show?

runawayhorses


Owner
LMAO!!

SSC


Admin
Rosco, you are right on the money.

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