Wednesday, November 10, 2010
President Obusha’s so-called debt reduction commission is out with its first proposal and it includes slashing Social Security and Medicare, as well as reductions in income tax rates in exchange for curbing tax breaks, according to a Republican aide who attended the meeting.
The Federal government is projected to run $8 trillion in deficits over the next 10 years, which would push the national debt up to more than $20 trillion. Obusha directed the commission to find a way to reduce the annual deficit to 3 percent of the nation’s gross domestic product by 2015 from about 9 percent now.
Social Security and Medicare, the government health program for the elderly and disabled, will consume a steadily growing share of the federal budget.
One simple way for the Federal government to slow the budget deficit is slash military spending by 10% and increase Federal income tax brackets to 38% for wage earners making more than $200,000 a year.
But such a populist solution is contrary to Mr. Obusha’s conservative world view. It is far easier for him to launch a brutal attack on American seniors and the disabled.