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Posts Tagged ‘Debt reduction’
October 10th, 2011 at 10:15 pm
No Matter the Outcome, Congressional Supercommittee Set to Do Damage
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I’ve written at length here at CFIF about the doomsday scenario that will ensue should the congressional supercommittee fail to pass at least $1.2 trillion in debt reduction by its November 23 deadline. Because of an outrageous provision in last summer’s debt ceiling agreement, a fail to act would produce defense cuts that could end up cutting as much as $1 trillion from American’s national security budget.

While the supercommittee’s broad goal of debt reduction is laudable, congressional Democrats are digging in their heels and asserting that the real problem is that Americans are being taxed too lightly, not that Washington is spending too much. From the Associated Press:

The supercommittee is struggling. After weeks of secret meetings, the 12-member deficit-cutting panel established under last summer’s budget and debt deal appears no closer to a breakthrough than when talks began last month…

Democrats won’t go for an agreement that doesn’t include new tax revenue; Republicans are just as ardently antitax. The impasse over revenues means that Democrats won’t agree to cuts to popular entitlement programs like Medicare…

 “There’s been no movement on (new) revenues, and I’m not sure the Democrats will agree to anything without revenues,” said a Democratic lobbyist who required anonymity to speak candidly.

Let’s be clear here: either scenario — either massive cuts to the Pentagon’s budget or higher taxes — would imperil America’s ability to maintain its global leadership position. The former would gut our defense resources now, while the latter would hollow out our ability to generate the economic growth that will be necessary to fund our military in the future.

Unfortunately, the only sensible option available is to punt. The supercommittee deserves to go bust if it can’t find $1.2 trillion in unnecessary federal spending. When it fails to do so, Congress should pass a separate piece of legislation overriding the “triggers” that will wreak havoc with defense spending.

The debt crisis simply won’t be solved while Harry Reid and John Boehner are squaring off on Capitol Hill and Barack Obama is in the White House. Better instead to wait for Republicans to gain control of the Senate — and hopefully the presidency — in the 2012 elections. At that point, the debt can be meaningfully reduced through sharp spending reductions, entitlement reform, and a root-and-branch reform of the tax system that can increase revenue while spurring economic growth.  In the meantime, America’s military can be kept intact.

 

September 26th, 2011 at 7:55 pm
Congressional Analysis Shows Pending Pentagon Cuts Would Gut National Defense
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In my column last week, I detailed the devastation that the Pentagon will be in for should the bipartisan congressional “supercommittee” not enact major debt reduction by early next year. While paring back the size of the federal government is essential, the Obama Administration was unspeakably reckless in allowing defense cuts that could reach over $1 trillion to be triggered automatically should the committee fail to act.

The staff of the House Armed Services Committee has now released their analysis of the proposed reductions and, according to a report in Politico, the outcomes could be every bit as dire as warned:

The analysis notes that the Navy would need to take two aircraft carrier battle groups out of service and the Air Force would lose a third of its fighters. The Marine Corps would no longer be able to maintain forward-deployed amphibious forces around the world. New weapons systems, such as the Navy and Marine Corps’ versions of the F-35 Joint Strike Fighter, would be canceled. The U.S. nuclear arsenal would be drastically reduced and modernization plans scrapped.

Aside from the troop cuts, there would also be massive layoffs of Pentagon civilian employees and the elimination of many jobs in the defense industry, according to the analysis.

The Obama Administration never runs out of supplicants. Whether it’s labor unions, “green energy” firms, or corporate friends who can get a waiver from Obamacare in the blink of an eye, there seems to be no one that the administration doesn’t have unlimited cash available for on an on-demand basis. No one, that is, except the men and women of the United States military.