This'n'That; July Thirteenth #2; Debt Solutions

Six Solutions To The owe-bama Depression:
    These six solutions are postulated by a wide array of political 'think-tanks,' some Soros-owned; some not.  They are:  the Bipartisan Policy Center; the American Enterprise Institute; the Center for American Progress; the Heritage Foundation; the Economic Policy Institute and the Roosevelt Institute Campus Network.  Now, let's have a brief look at their proposals, one-by-one:

• 1.  Bipartisan Policy Center.   INCOME: Proposing that tax revenue rise by 23.1% of GDP by 2035, inline with the Congressional Budget Office (CBO) baseline, implies end to Bush-43 Era tax cuts; eliminates most deductions to "broaden the base" of taxable income; simplifies the tax code from 6 tax brackets to 2: 15% and 27%; imposes a new "debt reduction sales tax" of 6.5%.  SPENDING: Federal spending would fall to 23.7% of GDP in 2035--CBO baseline: 28.3%; sharply reduced defense spending to 2.4% of GDP; budget-process reforms set to trigger spending discipline if no Congressional action.  ENTITLEMENTS: Spending on health and Social Security programs held to 15.4% of GDP in 2035, below CBO baseline; Medicare to become "premium supported" program, annual GDP growth rate + 1%, a reduction of .7% of current rate; enhanced Social Security benefits for the very elderly, the very poor; payroll tax cap raised to tax 90% of income; Social Security cost-of-living formula changed to accurately reflect inflation.  RESULTS:  Deficit of 0.7% of GDP in 2035--CBO baseline: 5%.  DEBT:  Federal debt forcast to be 38% of GDP by 2035; CBO forcast is 92++% of GDP.
• 2.  American Enterprise Institute.  INCOME:  Tax revenue to rise to 19.9% of GDP (recently 18%) by 2035--CBO forecast is 23.3% in 2035; current income tax replaced by a progressive consumption tax; eliminates most tax deductions and credits; institutes a carbon tax.  SPENDING:  At 22.8% of GDP in 2035 (= to current rates!) CBO baseline 28.3%; defense spending held to 4% of GDP--CBO baseline 3.3%.  ENTITLEMENTS: Health and Social Security spending drops sharply to 12% of GDP in 2035--CBO baseline 16% of GDP; flat Social Security benefit of $850/mo, indexed to wage increases; eliminates payroll taxes above 62 years old; repeals owe-bamaKare reforms; Medicare to provide income-adjusted support to help with insurance premiums; Medicaid to be block grants to states.  RESULTS:  Deficit of 2.9% of GDP in 2035--CBO baseline 5% deficit in 2035.  DEBT:  60% of GDP by 2035 (Currently: debt expected to be 75% of GDP in 2012).
• 3.  Center for American Progress.  INCOME: Tax revenue to rise to 23.8% of GDP in 2035, roughly equaling CBO baseline; adds a carbon tax; raises gas tax; creates/increases levies on internet gambling, alcohol, tobacco; flat income tax rate of 15% for households of $100k income or less; a new, temporary 'millionaires' surcharge.  SPENDING:  Federal spending down to 23.2% of GDP in 2035--CBO baseline 28.3%; defense spending cut to 3.2% of GDP; increased spending in education, energy and others--decreases in other areas.  ENTITLEMENTS:  Health and Social Security spending held to 13.7% of GDP in 2035--CBO baseline 16%; Medicare payment reforms to reduce costs within owe-bamaKare; expanded power of Independent Payment Advisory Board (IPAB) [serf-class speak: death panels!] to impose cost-control measures in Medicare and other areas!;   eliminates Social Security payroll tax cap--all income taxed!; Social Security benefits reduced for wealthy, increased for poor.  RESULTS: Surplus = 0.6% of GDP--CBO baseline = 5% deficit.  DEBT:  Public debt reduced to 42% of GDP in 2035 (2010--92.7%, IMF figure}).
• 4.  Heritage Foundation. INCOME:  Tax revenue at 18.5% of GDP in 2035--CBO baseline 23.3%; replace current income and payroll taxes with flat tax; reduced number of tax deductions and credits; creates tax deductions for college tuition and savings.  SPENDING:  Federal spending down to 17.7% of GDP in 2035 (2011-21% of GDP)--CBO baseline 28.3%; defense spending maintained at 4% of GDP in 2035; eliminate programs, privatize programs, transfer programs to states (unfunded mandates??); install a budget process with enforceable caps to force spending reductions.  ENTITLEMENTS:  Social Security held to 9.2% of GDP in 2035--CBO baseline 16%; Medicare converted to premium-support, benefits adjusted by income; raises eligibility age and links that age to changes in longevity; Social Security to have flat $1,200 monthly benefit--with income based phaseout--indexed to wage growth; eliminate payroll tax.  RESULTS:  Surplus 0.8% of GDP in 2035--CBO baseline 5% deficit.  DEBT: Public debt reduced to 30% of GDP in 2035 (2010--92.7%{IMF figure})
• 5.  Economic Policy Institute. INCOME: Federal tax revenue at 24.1% of GDP in 2035; repeal Bush-43 Era high income tax cuts; add millionaire tax surcharge; convert some tax deductions to tax credits; add excise tax on sweetened beverages; create carbon tax; increase gas tax.  SPENDING:  Federal spending to 27.8% of GDP in 2035, roughly equal to CBO baseline (2010--25.65% of GDP); cut defense spending to 1.9% of GDP in 2035; increase some spending, decrease others.  ENTITLEMENTS:  Health and Social Security spending held to 15.9% in 2035, roughly equal to CBO baseline; reform Medicare payment systems; add "public option" insurance plan for those under retirement age; raise payroll tax cap--90% of wages taxed.  RESULTS:  Deficit of 3.7% of GDP in 2035--CBO baseline 5% deficit.  DEBT:  Public debt to 82% of GDP in 2035 (2010--92.7% of GDP {IMF figure}).
• 6.  Roosevelt Institute Campus Network. INCOME:  Federal tax revenue to 22.9% of GDP in 2035, roughly equal to CBO baseline; eliminate mortgage interest deduction, cut others in half; tweek income tax rates--small cut for commoners, small increase for aristocrats;  add carbon tax, repeal gas tax.  SPENDING:  Federal spending down to 24.8% of GDP in 2035--CBO baseline 28.3%; defense spending to 2.9% of GDP in 2035; increase spending in some areas, decrease spending in others.  ENTITLEMENTS:  Health and Social Security spending to 13.5% of GDP in 2035--CBO baseline 16%; reform Medicare payment systems; add "public option" health insurance plans for those under retirement age; raise payroll tax cap--90% of wages taxed.  RESULTS:  Deficit of 1.8% of GDP in 2035--CBO baseline 5%.  DEBT:  Public debt to 64% of GDP in 2035 (2010--92.7% of GDP {IMF figure}).

As you can see, those owned and/or funded by George Soros are all for taxing the hell out of anyone who might have a bit of money.  Those 'socio-fascist, communist thinkers' are on the same track.  For my money, the Heritage Foundation's solution is the only acceptable one!!
Til Nex'Time....