Coburn Budget Proposal

**MathiasOfAthens** · July 19, 2011, 03:10 PM

Coburn proposes $9 trillion deficit cut measure

One of the Senate's staunchest budget-cutters unveiled Monday a massive plan to cut the nation's deficit by $9 trillion over the coming decade, including $1 trillion in tax increases opposed by most of his fellow Republicans.

The plan by Sen. Tom Coburn, R-Okla., is laced with politically perilous proposals like raising to 70 the age at which people can claim their full Social Security benefits. It would cut farm subsidies, Medicare, student aid, housing subsidies for the poor, and funding for community development grants. Coburn even takes on the powerful veterans' lobby by proposing that some veterans pay more for medical care and prescription drugs.

Coburn would also eliminate $1 trillion in tax breaks over the coming decade, earning him an immediate rebuke from Americans for Tax Reform, an anti-tax organization with which Coburn has had a running feud. He would block taxpayers from claiming the mortgage interest deduction on second homes and limit it to homes worth $500,000. He would also ease taxpayers into higher tax brackets more quickly by using a smaller measure of inflation to adjust the brackets.

Coburn's $9 trillion savings figure doesn't include another $2.4 trillion in cuts to Social Security that are funneled back into the program. In addition to raising the retirement age gradually, he would peg future benefits to a less-generous measure of inflation and curb benefit increases even more for the top 40 percent of earners.

Cuts to the Medicare program for the elderly and the Medicaid health plan for the poor and disabled would total $2.6 trillion over 10 years, far more than proposed by the fiscal commission or House Republicans. He proposes raising the Medicare retirement age to 67 by 2027 and then gradually increasing it until the retirement age hits 69 in 2080. It would also raise Medicare premiums for doctor visits so that premiums pay 35 percent of such costs instead of the 25 percent currently covered.

Coburn would cut $1 trillion from the Pentagon budget over a decade. He would block military retirees from the Tricare Prime health care plan, the option with the lowest out-of-pocket cost, saving $115 billion, and he would raise the prescription drug copayment under the program, as well as require higher out-of-pocket fees. He also would reduce the fleet of aircraft carriers from 11 to 10 and Navy air wings from 10 to nine.

I would go for this... it attacks both taxes and social programs so both sides put something in. Not to mention the military gets a nice cut too. Maher once said we should bring home the troops... from countries in Europe, Africa and the Americas that dont serve a purpose. I am not referring to the troops in SK and drug fighters in Columbia.

I like the idea to reduce the number of aircraft carriers and airwings.

Perhaps this separate budget proposal could have its own thread for awhile.

**mrmouth** · July 19, 2011, 05:25 PM

Originally Posted by MathiasOfAthens

Coburn proposes $9 trillion deficit cut measure

Not to mention the military gets a nice cut too. Maher once said we should bring home the troops... from countries in Europe, Africa and the Americas that dont serve a purpose. I am not referring to the troops in SK and drug fighters in Columbia.

Yeah, Ive heard him say that. It was one of his moments of idiocy when it comes to military matters. Bring them home from everywhere. Including Asia.

While you can argue that troops in Europe makes little sense other than keeping a door open that would certainly shut completely after you leave, South Korea and Japan self defense policy hinges on the US, and we get a lot out of it. Having those carriers and troops in those areas is huge for US policy in many ways. I mean, the US is playing mediator or bodyguard in multiple situations that have flared up in the last few years. The biggest of which was the SK/NK artillery exchange. But you have China vs most everyone, etc, etc.

And that goes for South America and Africa. All of these regions are either booming economically, or will be (should be) in the coming decades. Having a presence is vital because if we don't, China will.

As far as Coburn's proposal, nobody seems to be taking it seriously. The group of six deal will likely go through, and it is similar to Obama's 4 trillion package, plus some tax reform.

**MathiasOfAthens** · July 19, 2011, 05:30 PM

China doesnt spend its money on the military though. They invest their tax dollars back into their OWN society. Into the Infrastructure and in their big cities. Something we should be doing.

**mrmouth** · July 19, 2011, 05:38 PM

They are beginning to spend big time, and that will only increase. They had an epiphany after the Libya thing where military chiefs stated pushing hard for spending increases. But more than that, a change to a manner of thinking (realistic) in which China is going to have to float 6-8 carrier groups in the coming decades to defend their energy interests alone.

Lost in all the Libya stuff is that Africa is a flashpoint for US/Europe/Australia v China. Both countries have dug in fairly deep. And the Libya thing saw China completely evicted from doing their energy work there, without even a whimper. While the US and Europe were evacuating their people, so was China. And they lost billions. And now you'd better believe that there is a lot of jockeying to get back into position for contracts and to influence against the nationalization of Libya's energy assets.