The Debt Commission that was appointed by President Obama earlier this year came out with a startling report.
BOSTON – The heads of President Barack Obama’s national debt commission painted a gloomy picture Sunday as the United States struggles to get its spending under control.
Republican Alan Simpson and Democrat Erskine Bowles told a meeting of the National Governors Association that everything needs to be considered — including curtailing popular tax breaks, such as the home mortgage deduction, and instituting a financial trigger mechanism for gaining Medicare coverage.
The nation’s total federal debt next year is expected to exceed $14 trillion — about $47,000 for every U.S. resident.
“This debt is like a cancer,” Bowles said in a sober presentation nonetheless lightened by humorous asides between him and Simpson. “It is truly going to destroy the country from within.”
Simpson said the entirety of the nation’s current discretionary spending is consumed by the Medicare, Medicaid and Social Security programs.
“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,” said Simpson. China alone currently holds $920 billion in U.S. IOUs.
This is nothing new. Many of us have known about this for years and have said been emphatic about cutting spending and raising taxes. Unfortunately, this commission came up with this position about 8 years later then it should have.
Why did the media not go into detail about the funding behind the wars? If Americans knew we would have to pay for Iraq by taking loans from other countries the popular support for the war would have been non-existent, even on the onset of war.
Governors all over the country have been cutting spending on a number of programs. In a lot of states the taxes have been raised. If the states failed to do this, then the cities would most likely raise the property taxes to cover the spending shortfall.
This has been going on for too long.
Unfortunately, it seems that no political party exists that is willing to cut spending, raise taxes and maintain the social safety that we have established. My hope was that the Democrat Party would do this, and they might, but so far it is not looking good.
If the Republicans gain control, then look for any social service to be on the chopping block. Including, but not limited to, welfare, Medicare, Medicaid, social security, education, health, environmental funding and research and a number of other expenses.
The cuts would not include military spending, corporate tax breaks or the corporate ties in Washington.
Cut spending. Raise Taxes. Preserve Social Safety Net.
P.S. End these wars too.
See USSR war in Afghanistan for further insight.