|
16 November 2010 By Stephen
Lendman Some background. In his January
27 State of the Union address, Obama announced plans
to "freeze government spending for three years,"
starting in 2011, saying he'd establish a bipartisan
fiscal commission by executive order to cut the
deficit by imposed austerity. In other words, harm the
many by social spending cuts, including Social
Security and Medicare, not defense, banker handouts,
other corporate favorite subsidies, or the rich. Then on February 18, a White
House press release announced the commission's
establishment - a "bipartisan National Commission on
Fiscal Responsibility and Reform (NCFRF)," co-chaired
by two deficit hawks, former Senator Alan Simpson (R.
WY) and Erskine Bowles, former Clinton White House
Chief of Staff, heading an 18-member team stacked with
like-minded members. Their mandate: slash Medicare,
Social Security and other social spending. Fiscal
austerity for the many, unlimited wealth opportunities
for the few, an agenda from hell. On November 10, New York Times
writer Jackie Calmes headlined, "Panel Seeks Social
Security Cuts and Tax Increases,' saying: Obama's commission presented "a
politically provocative and economically ambitious
package, (igniting) a debate that is likely to grip
the country for years." Among others, its proposals
include: -- ending or capping middle class
tax breaks, including deductions for home mortgage
interest and tax-free employer provided medical
insurance; -- taxing capital gains and
dividends the same as ordinary income; long-term
capital gains and qualified dividends are currently
taxed at 15%; -- lowering income tax rates
dramatically to 9, 15 and 24%, down from six current
brackets ranging from 10 - 35% for income over
$373,650; -- slashing corporate tax rates
from the top 35% rate to 26%, combined with
eliminating some deductions; -- making permanent the research
and development tax credit; -- making deeper Medicare cuts;
increasing Medicaid co-pays; slashing $54 billion from
graduate medical education; and enacting
"comprehensive tort reform," making it harder for
aggrieved patients to file malpractice suits; -- raising the Social Security
retirement age to 69 by 2075; reducing cost-of-living
increases, now based on annual inflation rates;
raising the payroll tax ceiling to $200,000, letting
million dollar earners off the hook like now; -- cutting the federal work force
10% by 2015, adding to the unemployment rolls; -- raising the federal gasoline
tax by 15 cents a gallon and imposing "user fees" on
motorists - to have workers fund the federal
transportation and highway spending program; and -- cutting $100 billion in
military spending, including administration,
inefficiencies, "unnecessary" weapons (likely ones
Pentagon brass don't want in lieu of others they won't
sacrifice), force contingents on overseas bases, and
healthcare benefits for military retirees through
enacted premiums and higher co-pays; unmentioned is
the Pentagon's open-ended black budget, supplemental
Iraq and Afghanistan appropriations, and commitment to
continued imperial wars; also that military spending
will grow annually, unimpeded; Overall, by 2020, NCFRF proposes
cutting growing deficits by about $3.8 trillion, half
of the expected $7.7 trillion otherwise incurred. At the Seoul, South Korea G-20
summit, Obama asked Democrat party leaders to hold off
criticizing necessary "tough choices," adding: "Before anybody starts shooting
down proposals, we need to listen, gather up all the
facts, and be straight with the American people."
What, in fact, he hasn't done on all administration
policies since taking office, nor is he doing now,
proposing enormous harm to working Americans, while
showering benefits on corporate favorites, bankers
most of all. Wall Street, in fact, is spending
millions of dollars promoting NCFRF's proposal. AFL-CIO president Richard Trumka,
hardly a legitimate rank and file supporter, said the
proposal amounts to telling "working Americans to
'Drop Dead'. Especially in these tough economic times,
it is unconscionable to be proposing cuts to the
critical economic lifelines for working people, Social
Security and Medicare." Even the conservative Americans
for Tax Reform expressed criticism, saying: "It confirms what everyone has
known - this commission is merely an excuse to raise
net taxes on the American people," ordinary ones, that
is. If approved, in whole or in part,
proposed changes will become effective in 2012.
Deficit hawks want it accomplished before the 112th
Congress convenes in January. Public anger is needed
to stop it, a thinly veiled scheme to take from the
many for the few, the administration very supportive.
Rhetoric aside, coming debate will determine whether
congressional Democrats concur. At this point, it's
not a done deal. Clearly, however, political sentiment
favors cuts on the backs of those least able to afford
or contest them, ordinary people always betrayed,
Obama again proving more ruthless than Bush. Ending it is ultimately planned, preceded by benefit cuts and privatization, a scheme based on bogusly claiming future insolvency if remedial action isn't taken. In fact, Social Security sound and secure, the most conservative projections showing all scheduled benefits can be paid for the next 27 years with no structural changes. Saying it's going broke is a lie. Using that excuse for Medicare is another canard. Both programs are fiscally sound if properly administered. Even by 2100, retiree benefits will be double what current recipients get, with minor or no remedial adjustments. Media reports, however, say otherwise, calling the system in crisis when none whatever exists. For decades, it's been the single most important program keeping seniors and the disabled out of poverty. Eroding or destroying benefits will be catastrophic. That's precisely what's planned, however, Obama in tow with Wall Street, betraying the people who elected him, this among many other ways. If ever a Social Security fix is needed, a simple solution exists. Remove the payroll tax ceiling, taxing all earned income at the same rate. Doing it will dispel insolvency arguments. Improved fairness will also result for a program designed as social insurance, not welfare, as is Medicare, both programs funded by employer/employee payroll tax deductions. Another equitable solution is also avoided - overhauling the dysfunctional tax system, replacing it with a progressive one, making high earners pay their fair share instead of getting a free ride like today. Robin Hood Economics At issue, is ending all social benefits, including Social Security, Medicare and Medicaid, returning America to pre-New Deal days with everyone on their own to survive. At the same time, military budgets keep rising. Greater wealth disparity is planned, and repressive crackdowns will target resisters, both parties committed to regressive changes, no end to imperial harshness, and channeling the nation's resources unfairly, benefitting the few, not the many. A Final Comment Whatever National Commission on Fiscal Responsibility and Reform (NCFRF) proposals are adopted, more are coming, including from a lesser known group - the Bipartisan Policy Center (BPC) headed by former Senator Pete Domenici (R. NM) and Alice Rivlin, former Congressional Budget Office director and Clinton Director of the Office of Management and Budget. Established in 2007 by former Senators Howard Baker (R. TN), Tom Daschle (D. SD), Bob Dole (R. KS), and George Mitchell (D. ME), it aims "to develop and promote solutions....that make sense for the nation and can be embraced by both sides of the aisle." Its focused issues include national and homeland security, financial services, transportation, and reducing the nation's deficit. Its recommended spending cuts will be proposed, complementing NCFRF's with more draconian ones, underscoring fear to get them enacted. In a November 10 press release, BPC "appaud(ed NCFRF's) efforts....to address the nation's serious fiscal problems and hopes they can achieve the commission's support for a viable plan." A supportive November 10 New York Times editorial also endorsed it titled, "Some Fiscal Reality," saying: "The draft proposal by the chairmen of President Obama's deficit-reduction commission was a welcome antidote to the low-minded debate that dominated the midterm elections," offering "no credible plans." "It lays out sensible principles....It puts everything on the table, including tax reform" and spending cuts. "At a time when good ideas are depressingly scarce in the political and economic debate, and bipartisan agreement even scarcer, this is a commendable start." The editorial ended saying: "We hoped the Republicans would pause long enough in their gleeful planning of President Obama's final defeat, and the Democrats would stop wringing their hands, long enough to read this important document - and then act on it." Given decades of distorting and suppressing truth, endorsing imperial wars, supporting wealth and power, backing corporate interests, and disdaining working Americans, the Times' position is unsurprising. It also recommends a value added tax to "spur growth," hitting lower income Americans hardest if enacted. Hopefully saner voices and public outrage will kill it, sending it to history's dustbin where it belongs, along with neanderthal extremists who proposed it.
Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net. Also visit his blog site at sjlendman.blogspot.com and listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network Thursdays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening. http://www.progressiveradionetwork.com/the-progressive-news-hour/.
|
Add Comments