Has the Obama deficit panel already failed?

April 28, 2010

Well, if you define success as having the commission come up with solutions that can pass Congress, then yes. I am watching several commission members at the Peterson Foundation Fiscal Summit.  They are all downplaying what the commission can accomplish, saying that as long as the panel educates the American public on the debt problem, they will consider it a success.  But will bondholders of U.S. debt agree? Downplaying expectations may avoid an adverse financial market reaction to failure, but I am not sure it should. We won’t cut spending. We won’t raise taxes broadly. And we ignore policies that would boost economic growth. What else is there?

8 comments

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Is it the fault of the panel, or of Congress that the solutions don’t pass? From what I’ve seen, it’s pretty clear the proposals (some of them, anyway) are neccesary.

Posted by drewbie | Report as abusive

“What else is there?”

We could pray, though not in public.

We could “hope” for different “change”.

We could elect responsible majorities in the Congress in November.

There is only a deficit commission because the Congress and the Administration do not have the desire or the courage to do what is necessary.

Reality bites!

Posted by firetoice | Report as abusive

My Solution to the Deficit: A Fair Idea

1. Adopt the Fair Tax
2. Repeal the 16th Amendment (no income tax)
3. Adopt a new Amendment of no budget deficits without 75% of Senate agreement and only for short periods during a national emergency.
4. On January 2 of each year all entities, businesses, citizens, welfare recipients, governments, everyone donates 1 day of pay to reduce and eliminate the deficit. Once the deficit is paid no more donations.

Posted by QUICKENSU | Report as abusive

5. Cap total federal, state and local taxation as a percentage of GDP.

Posted by firetoice | Report as abusive

Problem is, Congress (in general, both parties) has shown that it recognizes no constraint on spending when the cupboard is bare, i.e., when there’s a deficit. So a cap on taxation would be meaningless. Adopting a constitutional amendment is a lengthy process, and repealing one is no easier.

That said, we have to start somewhere, don’t we? Unless we repeal the 16th Amendment first, than any other system will just be layered on top.

Posted by OldBull | Report as abusive

How the Rich pulled off this Lower Taxes for a better world campaign has got me ! I’m not a numbers brain , but I can understand that the wealth is moving Up – into fewer and fewer hands , and its not our dear mothers loving hands . Not our fathers either . In fact truth be told its not even American hands. The wealthy Few are more international more independent and less regulated then ever before . And the % of taxes the rich is contributing is at unprecedented low . Yes . We have to stop waste and thieving but our schools our hospitals our roads , Water and infrastructure is in critical need of repair . Do you think the people that are charging you and yours this high interest and fines are going to share the love if we just lower the taxes a little more ? Just look at the percent of GDP that goes to our government now and then look at what it was back when we built the city . This is getting seriously dysfunctional !

Posted by freelove | Report as abusive

“And the % of taxes the rich is contributing is at unprecedented low.”

*******************

Who Pays Income Taxes and how much?

Tax Year 2007
Percentiles Ranked by AGI
AGI Threshold on Percentiles
Percentage of Federal Personal Income Tax Paid

Top 1% $410,096 40.42

Top 5% $160,041 60.63

Top 10% $113,018 71.22

Top 25% $66,532 86.59

Top 50% $32,879 97.11

Bottom 50% <$32,879 2.89

Note: AGI is Adjusted Gross Income
Source: Internal Revenue Service

So: ????????????????????????????

Posted by firetoice | Report as abusive

re-freelove
your comments on just who pays the taxes in the usa, and how much they pay….is quite interesting.
you see, it reflects just how little you know about who really pays the bills in this country.
you want a middle class?
you want some of the money brought back to the lower levels of society?
heres a tip…it already is being distributed.
our govt is engaged in a social engineering experiment whereas they take billions from the top 10% of wage earners and disperse it to the lower 47% of wage earners in the form of tax refunds or earned income credits.

how about…instead…the lower 47% pay their fair share of taxes and not rely on the top 10% to pay the majority of the taxes for this country.

in other words…if you aint paying anything …then you dont really have the right to say anything.

Posted by JayWx | Report as abusive