Tuesday, November 30, 2010

An alternate plan for deficit reduction

Rep. Jan Schakowsky (D-Ill.), one of the 18 members of the Deficit Commission, has offered her own plan in response to the Commission's proposals, which she has rejected.

One of her proposals is to:

Provide $200 billion to invest over the next two years in measures to create jobs and spur economic growth, including passing the Local Jobs for America Act; and funding for education and law enforcement; Unemployment Insurance, Federal Medical Assistance Percentages (FMAP) and Supplemental Nutrition Assistance Program extensions; and infrastructure.

Sound familiar? Sounds like more spending to me, more into government programs. A mini-stimulus. If $1 trillion didn't work, why will $100 billion a year work?  So where will this $200 billion come from?

First, cut $117 billion from the defense budget in 2015. And she proposes we'll save $32 billion in health care costs. She doesn't mention how.

Another $7 billion by cutting agriculture subsidies. That's it on spending cuts.

The rest is to raise taxes by about $400 billion, about half going after businesses.

Doesn't sound like much of a plan to me. With our annual deficits running nearly $1,500 billion a year, she's cutting the deficit by about $200 billion.

Can someone come up with a better plan? Please?

Over the next several days, I'll be doing a search for other plans. But I'm willing to bet there isn't one that will actually work.

No comments: