The Direckshun Grand Bargain

[Direckshun]

YAY: 2
NAY: 25
(Last time totaled up: 12:43am on December 10)

After perusing several different budget control plans, from Boehner's proposal to Obama's proposal, Simpson-Bowles and plans from various liberal, conservative, and independent think tanks, this is the plan I've cobbled together that I think would responsibly cut the deficit over the next decade and perhaps beyond.

What I want you to do: vote. But your vote must be on the totality of DGB -- any statement where you say you'll vote on this "except for" this part or that part will be considered a "no" vote.

You are welcome, as always, to pick it apart and do your thing, but your post will be construed as a yes or a no vote based on my interpreation, and added to the vote totals accumulated in the vote totals at the top of the OP.

"DGB" will be the abbreviation for the Direckshun Grand Bargain from here on out.

THE DIRECKSHUN GRAND BARGAIN (6 trillion)

• Should reduce our debt by 60% by 2040.
• Will raise the debt limit an appropriate amount, but will otherwise not change how the debt limit is handled.
• All estimates are for 2013-2022, but DGB auto-renews every decade unless Congress acts.
• All these savings will result in $850 billion saved in interest that won't have to be paid.
• Would make the "fiscal year" two calendar years.
• Does assume some costs of already existing cuts and new taxes.

Mandatory Spending Cuts (over 300 billion):

• Reduce farm subsidies. (20 billion)
• Savings on government (& military) pensions, largely by saying you can vest sooner but must collect later, reforming COLA payments and making federal workers pay more into the pension. (70 billion)
• Increase spending on integrity programs for programs with improper payment problems (Medicare & disability). (should save 30 billion eventually)
• Miscellaneous cuts (150 billion)
• Measure inflation better. (50 billion)

Discretionary Spending Cuts (2.2 trillion):

• Reduce defense spending by 1.3 trillion (closing 1/3 military bases, cut down on contractors as well as their compensation).
• All of the cuts from the Budget Conrol Act of 2011 will be enforced. (900 billion)

Revenue Increases (2.5 trillion):

• Bush tax cuts for the wealthy expire. (1.1 trillion)
• Tax reform: repeal AMT, capital gains and dividends are taxed as normal income, repeal state and local taxes, cafeteria plans, and many kinds of itemized deductions, and drastically reduce deductions on charity.
• No more mortgage deduction for 2nd homes, homes worth more than 500k, or HELOCs.
• Reduce income tax exclusion for employer healthcare.
• Three tax rates: 15%, 25%, and 39%, raising taxes on the rich while broadening the base, and simplifies the code.
• These pieces of tax reform, put together, will add up to 1.25 trillion.
• Raise the gas tax $0.15 in 2013. (150 billion)
• Adjust how the government measures inflation to a more accurate measure. (90 billion)

Healthcare & Social Security (850 billion):

• Obamacare's shifting payment schemes that compensate doctors less, improve efficiency, and shift the healthcare system to a system that compensates on quality, not quantity.
• Tort reform, including paying lawyers less.
• Close the Medicare donut hole.
• Improve Medicare's cost sharing.
• Identify additional $200 billion in federal healthcare spending by 2020.
• Improve some social security benefits, in particular minimum payments for people with lifetime minimum wage jobs and helping out the oldest retirees. (This will actually cost around 50 billion.)
• Raise social security age to 67.
• Increase the maximum at which you can tax somebody for social security (200+ billion).
• Measure inflation better for social security (150 billion).

Do your worst. Poll forthcoming.

[Direckshun]

Patteeu: advocating lower taxes for the wealthy and higher taxes on the 98% since 2002.

[Calcountry]

Originally Posted by Taco John

This plan would choke the economy. Getting rid of things like mortgage deductions and income tax exclusion for employer healthcare are great ways to slow housing and job recovery. Also, a 40 percent tax rate is ridiculous. No one should owe the federal government 40% of what they earn. Nor should they owe 15% or 25% of what they earn for that matter.

I think that we've got to go off this "cliff" and let it roll. I think this is a better "grand" "bargain" than any plan I've seen yet.

I am so going to enjoy the Rose Bowl this year. Knowing that we have already went off the so called "cliff". They will still play the game. I will still have a good time watching it.

Oh, some poor bastards will lose their jobs but hey, what can I say? Keynesian socialism doesn't work, never has, never will. Good luck explaining that to a tard that will vote for "hope and change".

[vailpass]

Originally Posted by Direckshun

Patteeu: advocating lower taxes for the wealthy and higher taxes on the 98% since 2002.

Inciting class warfare based on imaginary dividing lines like "98%" is fun!!

[BucEyedPea]

Originally Posted by vailpass

What's more batshit crazy: the OP or the fact that Dave Loon voted in favor of it?

This. Yet, he calls out others as "batshit crazy" says all.

[Pawnmower]

Originally Posted by whoman69

There is no such thing as a fair flat tax.

Sure there is.

How about 0% and go to a completely consumption based system that has exemptions ONLY for:

1)Basic Staple Foods, produced in the USA - bread / rice / milk / whole chickens / veggies etc...

2)Used / Thrift Store items (used clothing, used books, etc...from 2nd hand stores or charity stores)

3)****Manufacturing/Distribution process steps (ACME buys a widget from X-CORP and Sells it to JOHNSON & JOHNSON).....only tax is paid on the consumption profit...like this:

xcorp bought raw materials for $5.00, pays a %consumption tax on 5.00, makes widget

Acme bought the widget from xcorp for $20.00, so pays a %tax on $15.00 consumption

Acme then packages them , labels them and sells them to customers for $27.50 each, and pays a %consumption tax on $7.50


If the consumption tax was 20%, it would be $1.00, $3.00, and $1.50 at the corresponding steps.

No income taxes to figure out....

**** Just an example of a VAT type of system, there are other systems also.



Want to spend mad loot on your business/office furniture and gear? Pay consumption tax on all of it...

Want to run a home office with second hand gear or a small business with a few employees and some second hand/ used gear? Pay no consumption tax. (or perhaps a vastly lowered amount on used items...)

If you are poor /working class and buy staple foods and conserve your money and buy second hand items you will pay virtually no taxes. If you want to waste money on the latest IPAD or other new trendy device, youll have to pay taxes.

Rich peoiple with mansions, yachts, nice clothes, top end furniture will be paying most of the bills and getting hit with more consumption tax...unless of course they choose to live more frugally and consume less.


These are just examples of how simple and powerful a consumption based system could be.