weak Obama proposal

[Jim in CT]

Originally Posted by zimmy

Democrats won't do the cuts and 'pubes won't raise taxes. Both things need to be done.

I'm not convinced we need to raise taxes. I say, get rid of the indefensible waste first, and if we see that's not enough, then raise taxes. But there is an enormous amount of waste begging to be cut. Tax hikes hsould be a last resort...

[mosholu]

I agree that we have to get really hard core regarding the amount of money that flows out of the government with no real benefit. Part of that is wrapped up in the tax system. Why have lower taxes for capital gains or carried interest it makes no sense when you have a deficit like ours.
As far as the mortgage deduction it will probably be phased out over time starting with second homes and mortgages over X amount and then there will be a drop dead date where it will not be available for any new home purchase.
One of the few things I liked about the President's remarks the other day was when he said everyone wants the deficit cut until it touches on of their perks. Until we get over that mentality I think this is going to be a slow painful process.

[Piscator]

Originally Posted by mosholu

I agree that we have to get really hard core regarding the amount of money that flows out of the government with no real benefit. Part of that is wrapped up in the tax system. Why have lower taxes for capital gains or carried interest it makes no sense when you have a deficit like ours.
As far as the mortgage deduction it will probably be phased out over time starting with second homes and mortgages over X amount and then there will be a drop dead date where it will not be available for any new home purchase.
One of the few things I liked about the President's remarks the other day was when he said everyone wants the deficit cut until it touches on of their perks. Until we get over that mentality I think this is going to be a slow painful process.

What "perks" does he mean? They can have mine. I'm saving for "non-Social Security" living know for when I get old. T

[zimmy]

Originally Posted by Jim in CT

I'm not convinced we need to raise taxes. I say, get rid of the indefensible waste first, and if we see that's not enough, then raise taxes. But there is an enormous amount of waste begging to be cut. Tax hikes hsould be a last resort...

Can you point out a relatively nonpartisan economist that thinks we can fix our debt problem at this point by cuts alone? I can't find it. I hear politicians say it, but that is mostly because they are looking to incite their voters. The #'s don't add up.

[Jim in CT]

Originally Posted by zimmy

Can you point out a relatively nonpartisan economist that thinks we can fix our debt problem at this point by cuts alone? I can't find it. I hear politicians say it, but that is mostly because they are looking to incite their voters. The #'s don't add up.

That's a fair question, and the answer is "no", I haven't heard any leading economists say that. But I have heard conservative legislators say it, and I also trust my own common sense.

I see a small iota of that waste every day, and so does everyone else who has eyes. The entire stimulus bill ($800B) was essentially useless pork...it's not like lots of new highways or bridges went up.

Tax revenue in this lousy economy, I believe is around $1.5 trillion. The federal budget in 2000 was around $1.5 trillion. In other words, to balance the budget, we need to get spending back to what we spent in 2000.

Can that be done? Certainly. Get rid of wasteful defense programs, Medicare fraud, start cutting services to all the illegals. Reform the tax code so that EVERYONE pays SOMETHING. I think 35% of citizens pay $0 federal income taxes? The folks at the top of that range can pony up a little, they use the roads too, and they rely on the military. It won't be easy, but I am positive we can do it without raising taxes.

The homeowners deduction will not be eliminated while the GOP controls the House. They won't let it happen. Even if they had to filibuster it, they would do it.

I can't believe Obama is even considering that. He's amazing, he cannot even get one right by accident.