LumberJocks

The USA Budget Dilemma

  • Advertise with us

« back to Coffee Lounge forum

Forum topic by Joe Lyddon posted 05-01-2012 08:04 PM 3030 views 0 times favorited 99 replies Add to Favorites Watch
View Joe Lyddon's profile

Joe Lyddon

7928 posts in 2796 days


05-01-2012 08:04 PM

Topic tags/keywords: usa budget dilemma sink or swim financial political


The USA Budget Dilemma

Suggested List of things we should do to Solve our Problems:

1. Medical Costs… Fix it.

——————————————————-

2. Pass the recommendations of Simpson-Bowles. It wasn’t perfect, but it included cuts in social programs, military spending, and increases in taxes, all of which are required to get things going in the right direction.

3. We should all vote for reps that will focus on solving this problem,

——————————————————

4. Get an actuarial analysis on what the rates have to go to to make SS 100% self funding from payroll taxes. Next, a national referendum on SS: Do we keep it paying benefits as they’re structured now, and are willing to pay the price to fully fund it (I believe the payroll tax needs to increase by about 2% of pay [currently 12.4% split between employee and employer]), or do we want to phase SS out. I guess it comes back about 80% in favor of keeping it as is, so we increase payroll taxes for SS. Everyone pays. (bonus points for means testing SS, and reforming the SS disability program to eliminate fraud.)

5. Similar with Medicare. Probably require tripling or quadrupling Medicare taxes (now 2.9% total), but I bet most folks vote in favor (+70%). Once this is done a binding panel needs to be set up to constrain the growth of Medicare. I’d like to see significantly higher costs placed on those that smoke and are significantly overweight. Those two life style choices are a huge drain on medicare. I’d also revoke Medicare part D, it was never paid for and is too expensive; nice to have, but… Medicare has to stop paying everything for everyone. My parents and in-laws are all on it, and it is way too generous; much better coverage than my private insurance.

Both these programs need to be divorced from the general fund and made to be self sufficient. Every few years the tax rates for SS and Medicare should be adjusted, up or down, per actuarial analysis to maintain solvency. If the rates are too high, benefits have to be cut. Forces transparency, and makes the beneficiary of the program pay their own way.

6. Completely revoke the Bush tax cuts, for everyone.

7. Set capital gains rates equal to earned income. Why do we value investment over actually working for a living. Both are needed, all income should be treated the same.

8. Implement the spending cuts and tax reforms in Simpson Bowles, but I would slash Defense by about 50%. We can no longer afford to be the worlds police force. We need national defense, not the ability to wage multiple elective foreign wars simultaneously.

9. Panels independent of each cabinet agency should be set up to review all programs and sort through the nice to have that the must have programs. All nice to have programs go. Food inspection stays, farm subsidies go. Air traffic control stays, no child left behind goes. Private businesses do this routinely when times get though. Time to streamline

———————————————————————

10. Completely overhaul the federal tax structure. Chop the tax code to 10 pages tops. Forget loopholes and capital gains rates. They are trivial. Everyone needs skin in the game. Except for the dead, everyone should pay taxes. EVERYONE.

11. Stop demanding “gifts” from the federal treasury. Cut the actual entitlement programs, not just the amount of growth each year. It has gotten ridiculous.

12. Cut the size of the federal government. Private business is the lifeblood of this country. Not government.

13. Stop letting our elected federal leaders live like kings. They are not our royalty. They need to live by the rules they make for use, not special rules they pass for themselves.

14. Stop the massive printing of money by the FR. Scratch that. Dump the FR.

15. Stop punishing good decisions, productivity, efficiency, honest labor, hard work, risk.
————————————————————-

-- Have Fun! Joe Lyddon - Alta Loma, CA USA - Home: http://www.WoodworkStuff.net ... My Small Gallery: http://www.ncwoodworker.net/pp/showgallery.php?ppuser=1389&cat=500"


99 replies so far

View lwllms's profile

lwllms

548 posts in 2026 days


#1 posted 05-02-2012 12:23 AM

Joe,

Hal Mason has it right. Well, as long as we continue to follow the economic theories of Milton Friedman. President Regan was the first to really try to implement Friedman’s theories but even Regan realized it wasn’t working and Regan raised taxes 11 times to try to catch up. He didn’t catch up and we went from being the World’s largest creditor nation to the World’s largest debtor nation.

Mason was also right to look at Europe for where we’re going if we continue with Friedman’s theories, which the wealthy and corporations seem to favor. Friedman’s austerity is being applied to Europe and it hasn’t worked any better there than it did here under Bush.

While there are some legitimate criticisms of Keynesian Economic theory, those minor things can be fixed. We need to return to working under the theories of John Maynard Keynes. If the Government wants to increase revenue the best way is through full employment and growth. We need a solid middle class with a healthy disposable income and who are secure enough to both save and make use of their disposable income for economic stability and growth. You might have heard it before but it’s true, “You have to spend money to make money.”

View Jimbo4's profile

Jimbo4

1172 posts in 1507 days


#2 posted 05-02-2012 12:53 AM

lwllms: Wait a minute, how come I’ve been led to believe that Obama was the cause of us being a debtor nation?

-- *Arachnoleptic Fit*: The frantic dance performed just after you've accidently walked through a spider web.

View fussy's profile

fussy

980 posts in 1795 days


#3 posted 05-02-2012 02:58 AM

@rosebudjim,

Have you been getting your news and views from fox?

Steve

-- Steve in KY. 44 years so far with my lovely bride. Think I'll keep her.

View Joe Lyddon's profile

Joe Lyddon

7928 posts in 2796 days


#4 posted 05-02-2012 03:46 AM

Are you Y’all are trying to argue the point that we should DO NOTHING…

... rather than DO SOMETHING… at least TRY to ? !!!

Sounds like Y’all just want to Blame someone for something and the heck with trying to Solve a Problem!

... and, if you think Obama, his administration PLUS A Democratic Congress will do it (based on the last four years), your logic does NOT COMPUTE!

-- Have Fun! Joe Lyddon - Alta Loma, CA USA - Home: http://www.WoodworkStuff.net ... My Small Gallery: http://www.ncwoodworker.net/pp/showgallery.php?ppuser=1389&cat=500"

View Rick M.'s profile

Rick M.

4470 posts in 1124 days


#5 posted 05-02-2012 06:33 AM

Clinton balanced the budget and we were showing a surplus but Bushocalypse and his minions ruined it .

-- http://thewoodknack.blogspot.com/

View Viktor's profile

Viktor

448 posts in 2163 days


#6 posted 05-02-2012 08:46 AM

“Deficits don’t matter” Reagan™

View jmos's profile

jmos

681 posts in 1114 days


#7 posted 05-02-2012 11:05 AM

I think the information in that video should be aired on all stations, 24 hours a day, for a week. Most people don’t understand how big the problem is, or that neither party has any idea how to fix it. Dems want to raise taxes on the rich; nice but not nearly sufficient. The Repubs want to cut cut taxes, again; still waiting for the boom from the Bush tax cuts. Retreaded old ideas, the best either Party can come up with.

I still find it unfathomable that Congress would not pass the recommendations of Simpson-Bowles. It wasn’t perfect, but it included cuts in social programs, military spending, and increases in taxes, all of which are required to get things going in the right direction.

I do agree that we should all vote for reps that will focus on solving this problem, but I don’t know where to find them. On the Presidential level neither candidate is willing to talk about the full problem, let alone propose a viable solution.

-- John

View helluvawreck's profile

helluvawreck

16033 posts in 1611 days


#8 posted 05-02-2012 11:06 AM

Neither the Republicans nor the Democrats are the answer. They’re the ones who got us in this mess. :-|

helluvawreck
https://woodworkingexpo.wordpress.com

-- If a man does not keep pace with his companions, perhaps it is because he hears a different drummer. Let him step to the music which he hears, however measured or far away. Henry David Thoreau

View helluvawreck's profile

helluvawreck

16033 posts in 1611 days


#9 posted 05-02-2012 11:15 AM

Insanity: doing the same thing over and over again and expecting different results. Einstein

helluvawreck
https://woodworkingexpo.wordpress.com

-- If a man does not keep pace with his companions, perhaps it is because he hears a different drummer. Let him step to the music which he hears, however measured or far away. Henry David Thoreau

View helluvawreck's profile

helluvawreck

16033 posts in 1611 days


#10 posted 05-02-2012 11:23 AM

We can’t solve problems by using the same kind of thinking we used when we created them. Einstein

helluvawreck
https://woodworkingexpo.wordpress.com

-- If a man does not keep pace with his companions, perhaps it is because he hears a different drummer. Let him step to the music which he hears, however measured or far away. Henry David Thoreau

View GregD's profile

GregD

637 posts in 1880 days


#11 posted 05-02-2012 03:14 PM

wormil – Some would argue that Clinton’s budget balanced because of the growing stock market bubble at the time (remember the Tech Bubble?).

House Republicans, in spite of all their bluster last year about the ruinous deficit, passed a Small-Business Tax-Cut Measure that would certainly add to the deficit except that it won’t go anywhere.

Simpson-Bowles was at least an honest effort toward fiscal responsibility.

The Bush tax cuts were irresponsible. Further, I’m for taxing Capital Gains as ordinary income. But we also have issues with the massive spending on the military, on Social Security, and on Medicare/Medicaid.

-- Greg D.

View RetiredCoastie's profile

RetiredCoastie

999 posts in 1927 days


#12 posted 05-02-2012 03:52 PM

The first thing that needs to happen is government reform. The recent abuses by the GSA is just the tip of the iceberg. Our tax code needs to be reformed. Stop the bailouts. If a business cant stand on it’s own two feet then they shouldn’t be in business and doesn’t deserve my tax dollars. We keep sending money to countries that could care less about our citizens so why should we help them. We send billions to countries so they’ll be our friends or buy our goods but we don’t see any return for our investments. Too many people suck off the government teat, get off your ass and make your own way in life. If you need help well help but only for a short time. Just today there is a report that billions are going out in the form of tax deductions to illegal aliens that are claiming deductions for family members that aren’t or haven’t even been in this country. Finally SOCIALISM doesn’t work and it never will so get over it. If you don’t like it here then get the hell out. Too many people wan’t the good life but aren’t willing to put out the effort and expect the public or government to support them. If you don’t have the means to support the family or lifestyle you wan’t then you better get off your butt and earn it! Don’t come to me for money because you made poor choices or engaged in reckless or irresponsible behavior. Take ownership for what you do and ccept the consequences for your choices and actions!

-- www.thepatriotwoodworker.com Proud Supporter of Homes For Our Troops

View Joe Lyddon's profile

Joe Lyddon

7928 posts in 2796 days


#13 posted 05-02-2012 06:31 PM

Why do we ALWAYS have to end up BLAMING “this” and “that” to
skirt the REAL problem than how to SOLVE it?!

Let’s KNOCK OFF the BS and continued rhetoric and get to solving the problem… OK?

What MUST we do to solve the problem?

NOT in long drawn out Narratives…!

1.

2.

3.

4.

5.

6.

Fill-in the blanks… etc. etc.

NOT quoting History or blaming anyone, anything, etc.

Can we do it?

-- Have Fun! Joe Lyddon - Alta Loma, CA USA - Home: http://www.WoodworkStuff.net ... My Small Gallery: http://www.ncwoodworker.net/pp/showgallery.php?ppuser=1389&cat=500"

View lwllms's profile

lwllms

548 posts in 2026 days


#14 posted 05-03-2012 01:13 AM

One of the biggest causes of future debt is the skyrocketing cost of health care. Fix it. Go to a single payer system and get the h*ll out of reproductive rights. There’s no profit in our current system for preventative care, the profit is in treating entirely preventable disease. A single payer system, with the profit motive removed, can be a lot more effective at preventing problems.

There are a lot of ideas and I spend my days focused on keeping my own business afloat. I don’t have time to dig into all the possibilities but here’s one I’m aware of. We all know that remaining fossil fuels are limited but right now we have a glut of natural gas in this country. Instead of burning up that natural gas doing the same things that got us into this mess, use that natural gas to create a cure. Making glass consumes a lot of energy but it’s one of the key elements and costs of solar roads. Fund the production of solar roads even if we have to borrow the money to do it. It’ll create a lot of good paying jobs and go a long way to solving energy problems and crumbling infrastructure problems.

Here’s just one idea of what could be and it would pay for itself:
http://www.trendhunter.com/trends/ecomagination-challenge

Friedman’s austerity nonsense is financial suicide. Every job they kill and every benefit that goes away takes from the middle class that drives our economy. Killing jobs, wages and benefits just puts more people in need of public assistance and creates a huge drain on an already fragile situation.

We can do this. If everyone stands up and does their share we’ll all feel more optimistic and have a greater propensity to spend and feed the economy. Of course it will also mean that corporations and the wealthy do something more than making every decision based on today’s bottom line and how much they can squeeze into their own pockets.

View Jimbo4's profile

Jimbo4

1172 posts in 1507 days


#15 posted 05-03-2012 01:54 AM

Hey fussy – I don’t go any where near faux news, just rumors I hear from the numb nutts who do.

Joe: Throw all the bums out and start over, including the supreme (dumbass) court.

-- *Arachnoleptic Fit*: The frantic dance performed just after you've accidently walked through a spider web.

showing 1 through 15 of 99 replies

Have your say...

You must be signed in to reply.

DISCLAIMER: Any posts on LJ are posted by individuals acting in their own right and do not necessarily reflect the views of LJ. LJ will not be held liable for the actions of any user.

Latest Projects | Latest Blog Entries | Latest Forum Topics

HomeRefurbers.com

Latest Projects | Latest Blog Entries | Latest Forum Topics

GardenTenders.com :: gardening showcase