Yesterday, the organization Third Way released a plan outlining several Social Security reform proposals meant to ensure the program's solvency over the next 75 years. The plan, called Saving Social Security, makes several fundamental changes to the program and cuts $2 in benefits for every $1 it increases taxes.
What do you pay in Medicare taxes? And what Medicare benefits can you expect? This issue—potent now that the first baby boomers are turning 65—was highlighted recently by Ricardo Alonso-Zaldivar in a widely read Associated Press story.
The Treasury Department released Tuesday its annual Financial Report of the U.S Government. The report highlights the nation's budget deficit, net operating costs, debt projections, and all government liabilities on an accrual accounting basis. To sum it up, the report shows us how big of a hole we're truly in.
Washington Drops the Ball – To many federal budget watchers, the tax cut debate has been more frustrating than watching the Redskins play. The expiring 2001/2003 tax cuts presented an opportunity not only to remake the tax code, but to transform the fiscal discussion in Washington.
Today legislation to provide $250 payments to Social Security recipients in lieu of a cost-of-living adjustment (COLA) failed to garner enough votes in either chamber. The Social Security Trustees announced earlier this year that there would be no COLA because prices have not risen above the level of the last increase in 2009. The bill would have cost $14 billion.
You might have missed it last week if you were preparing to chow down on some turkey, but Our Fiscal Security (OFS)--a joint project of the Economic Policy Institute, Demos, and the Century Foundation--became another in a long list of groups/experts to put out a specific proposal for our long-term fiscal situation.
The drumbeat for action to reduce our long-term debt continues. Today the Debt Reduction Task Force of the Bipartisan Policy Center issued its recommendations on ways to put the United States on a sound fiscal course. The bipartisan panel was chaired by former Senator Pete V. Domenici and former CBO and OMB director Alice Rivlin. CRFB President Maya MacGuineas also served on the task force.
Roast (Lame) Duck is Served – The lame duck session of Congress begins today, but it is already being panned as unlikely to be very productive. As we previously noted, lawmakers face a sizable (and expensive) laundry list. With no indication that bipartisan cooperation on any of the items is likely, legislators may simply punt them to the next Congress. A meeting Wednesday between congressional leaders and President Obama will provide a signal on what can be accomplished during the session.
With the unexpected release of the draft proposal from the co-chairs of the President’s fiscal commission, the naysayers have come out of the woodwork. But as we have seen all too often, the critics are willing to blast the report without offering alternatives for fixing our fiscal house.