Bill to be introduced based on the Deficit Commission recommendations in 2011

[eridani]

Obama and the Repukes are going to fuck over seniors (and lots of other lower income folks) big time.

http://thehill.com/blogs/on-the-money/budget/134531-warner-chambliss-will-introduce-debt-commission-bill-next-year

Sens. Saxby Chambliss (R-Ga.) and Mark Warner (D-Va.) on Monday said they will introduce a bill early next year based on the report from President Obama’s deficit commission.

Warner and Chambliss have been meeting with a group of 18 senators on finding a way to balance the budget, and said they have concluded the debt commission's proposal is the best basis for bipartisan talks.

The debt commission's report received bipartisan support from 11 of the panel's members, ranging from Sen. Tom Coburn (R-Okla.) on the right to Sen. Dick Durbin (D-Ill.) on the left. The recommendations ultimately failed to advance to a vote in Congress because 14 votes were needed for formal commission backing.

Despite the failed vote, Warner and Chambliss want to use the debt commission's work as a starting point for deficit talks in Congress. The senators said they expect their legislation to evolve as they seek supporters from both parties, but they said the final plan will reflect the commission’s goals of balancing the budget by 2035 by bringing spending down to 21 percent of gross domestic product.

[Hannah Bell]

1. i'm confused. according to the linked source, federal spending in 2007 was 20% of gdp

and forecasts for 2009 & 2010 were less.

what is this 21% of gdp we need to get down to in 2035?

http://www.whitehouse.gov/sites/default/files/omb/budget/fy2009/pdf/hist.pdf

pg. 29

[eridani]

2. The deficit hawks want people to be confused

Forecasting that many years in advance about a whole bunch of factors that are concurrent is difficult.

[xchrom]

3. Ask oxymandius - cause I'd like to know myself - and hes

A fountain of info about stuff like that.

[Statistical]

8. Social Security.

Now SS isn't part of the federal budget.

However for the last 30 years each year SS runs a surplus, gives the money to federal govt (general fund) and gets a bond back in return.

Now in 2018 SS will need to start redeeming those bonds for cash because expenses (benefit payments) will be more than revenue (payroll tax + interest). When it does the exact opposite will happen for the next 30 years. Funding will flow from general fund -> SSA Trust fund. This outflow will hit a projected peak in .... 2035. Thus if "normal" federal spending remains flat then TOTAL federal spending (normal spending + outflows to SSA) will rise each year peaking in 2035.

3 ways to "manage" this
a) Understand spending will rise thus taxes must also rise and federal spending as a % of GDP will also rise.
b) Cut federal spending to offset the flows to SSA. i.e. if in year X $400B is going to SSA and you cut federal spending $400B then net-net no change in total federal spending occurs
c) Change SS. Either raise the cap, raise contribution rate, or cut benefits.

[DCKit]

4. Yet nobody suggested ending our various wars.

A pound of flesh from every citizen, but Dog forbid we cut off the MICC.

[European Socialist]

5. Let the caving begin--I bet Dems are already thinking of excuses...

"We hated to vote for it, but ....

[somone]

6. Coming Soon: "We're drowning in red ink. Seniors, please think about the children and do your part

because four out of five dentists say cat food is nutritious for seniors"

[eridani]

11. They could just make it legal to start hunting us for sport n/t

[MadHound]

7. What I foresee is that the 'Pugs are going to force another "crisis" with the budget bill in Feb.

Demanding this huge list of spending cuts. Obama will come out and do his famous faceplant cave, and we'll all be screwed again.

[katnapped]

9. And the apologists here

Will be claiming "It was the best we could do....after all there's only a limited number of ponies!"

[Little Star]

10. Happy New Year from Warner and Chambliss and

the Deficit Commission. :wtf: