It is not surprising that many Republicans are making tax increases and subsidy reductions as part of their talking points in their speeches lately; and they are also proposing means tests for some Social Security and Medicare recipients, who can forego any type of financial assistance.
Many lawmakers now agree that waste of every kind, big or small, must be eliminated to help the reduction of the national deficit, as some bills have passed in both chambers of the United States Congress in recent months to make that possible.
Yet, looking at unemployment and other benefits, like subsidies for rich farmers, and for those who do not actually need them is one thing, the real matter is to have enough revenue that will make a substantial dent in the overall deficit.
That is the purpose of the Super Committee, which must put everything on the table, including tax increases and parts of entitlement programs that are considered to be wasteful.
The nation is in an emergency situation, and the committee has been assigned to deal with it. Their assignment will be the fore runner of a tax reform that must come out of Congress to tackle the national debt of more than $14 trillion dollars.
It is a problem that is stirring all Americans in the face, and it is not going to go away anytime soon, as the government must hold back on spending in order not to make it worse.
President Barack Obama was seen a while ago signing an executive order for government departments to reduce spending. They (departments) must show frugality in their expenditures, as the order was instantaneous; thus reinforcing the June , 2011 executive order, "Delivering an Efficient and Accountable Government."
It is also a good sign that some Republicans in Congress are realizing the need to find ways and means to tackle the nation's number one obstacle, the national debt, and that has to include tax hikes on the rich, an idea they are always fighting against.
Their (Republicans) means tests and cutting of farm subsidies will only amount to nickle and dime savings on entitlement programs; but that is not what the fiscal situation of America is calling for. Deep cuts in entitlements and revenues from the people who can afford to pay them must apply, under all circumstances.
A real tax reform is needed to turn things around; and for all Americans to pay their fair share in revenues; but it (reform) is still a long way away; hence, the Super Committee.
It has been specifically set up to deal with the deficit reduction, to bring it down by a measly $1.2 trillion dollar (as compared to the national debt, which is standing at $14 trillion). That target must be reached, even then, it is only for starters.
The committee requires all the help it can get, before the due date of Nov. 23rd, 2011, when the automatic trigger cuts across the board will be in effect.
When, and if that happens, Social Security, Medicare and Medicaid will not be the same again. They will adversely be affected, according to official predictions. Also, the military will have problems, as its budget will go under the knife as well.
In that wise, the U.S. National security may be in jeopardy, as speculated by many military experts; and that must not be allowed to happen.
This blog may sound like a repeat of yesterday's blog, but it is not. It is to emphasize the importance of the Super Committee reaching an agreement before the deadline.
Thursday, November 10, 2011
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