´óÏó´«Ã½

´óÏó´«Ã½ BLOGS - Mark Mardell's America
« Previous | Main | Next »

Can America take the pain?

Mark Mardell | 02:18 UK time, Thursday, 11 November 2010

Alan_Simpson.jpg"The problem is real, the solution is painful" is the stark heading to one part of a on how to cut America's .

It calls for "shared sacrifice" and its authors are not bluffing. Democrats will hate a lot of what is in this report. So will Republicans. It calls on nearly all Americans to pull their belts so tight it'll cut into the flesh.

That is why it is doomed to be a first draft.

President Barack Obama has appointed a on fiscal responsibility and reform to come up with a plan to cut the deficit. Its members are due to report on 1 December. But the first stage is this paper by the co-chairs, Alan Simpson, a former Republican senator, and Erskine Bowles, who used to be chief of staff to President Bill Clinton.

The knife they would jointly wield would cut deep. They would start at the top.

They want to cut the budget for the White House and Congress by 15%. There would be a federal pay freeze and a cut of the work force by 10%, as well as a cap on spending in most departments.

So far, so good. Many in America would view that with relish. But then they start culling some sacred cows.

First, $100bn off the defence budget. A third of overseas bases would be closed. Pay frozen for three years for all excepting combat troops. Much-beloved projects for planes, ships and fighting vehicles would go out of the window. Schools on military bases would close. A quarter of a million contractors would lose their jobs. And that is just a flavour of it.

Nearly as sacred as the military in the US is the car. But motorists would see taxes on petrol rise.

No politician can afford to offend those most consistent of voters, the retired. But pensions would be cut for many and the retirement age would go up and up until it reached 69 by 2075.

There are some professions you don't want to tangle with. But the proposal is to give doctors less money for working on government-run Medicare. Oh, and lawyers too.

All sensible politicians court the rural vote, and this is one area for government hand-outs that delights the right. But this pair would get rid of farm subsidies.

There is one sure way to lose elections, especially when times are hard. Put up taxes. So it is little surprise that even this daring duo don't give a huge amount of detail on their tax proposals. But they would raise $80bn a year, so someone would be going "ouch". In return for a lower and simpler income tax, nearly all tax breaks would be abolished, including the American equivalent of mortgage tax relief.

So it is not a huge shock that most members of the commission emerged from the briefing . It is why all this is not going to happen. But some of it might.

The authors tell Americans it is their "patriotic duty" to come together behind a plan and that America "cannot be great if we go broke". Stirring stuff, and there is no doubt Americans are willing to make great sacrifices for glorious causes. Or in some cases, at least applaud while others do. But we'll have to see if even the most ardent Tea Party supporters will accept their own pain, and a drop in material well-being may be part of the price for achieving a balanced budget.

Comments

or to comment.

´óÏó´«Ã½ iD

´óÏó´«Ã½ navigation

´óÏó´«Ã½ © 2014 The ´óÏó´«Ã½ is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.