Deficit Panel Proposes Cuts

Have a question? Agree, disagree,
with me? Leave me your opinion.

A White House commission proposes
to cut the federal budget deficit
by hundreds of billions a year.
Social Security benefits, middle
class tax breaks and defense spending
are of interest.

The initial plan is to stop various
breaks the middle class are getting
like the deduction for home mortgage
interest.

On Social Security, the plan would
slowly raise the retirement age to 68
around 2050, 69 by 2075. It would combine
various cuts to benefits with an increase
in taxes on wealthier people's incomes.
Also, it's looking to curb federal spending
on health care except what's needed for the
recently passed health care plan. This would
be achieved by introducing further changes,
including reform of medical/malpractice law,
and by slowing the growth of the Medicare p
rogram.

A version of the plan would dramatically lower
individual rates to 9%, 15% and 24%.

"Tough choices" are going to be necessary to
tame a deficit that has soared to more than
$1 trillion a year, President Barack Obama
shared with leaders of his own Democratic
Party.

"Before anybody starts shooting down proposals,
we need to listen, gather up all the facts, and
be straight with the American people," Mr. Obama
stated at a press conference Thursday in Seoul,
where he attended a Group of 20 nation's summit.

The commission staff's goal is to curtail growth
of the federal debt by roughly $3.8 trillion by
2020.

"In the end, the president is going to have to
decide whether to incorporate some of this into
the 2012 budget," David Walker, a former U.S.
comptroller general and an advocate for deficit
reduction. "He's going to have to lead, because
if the president doesn't lead on this, it goes
nowhere fast."