Budget Debate

Budget Debate

Early on Saturday, March 23, the U S Senate approved a budget for year 2014, the first budget approved by the Senate in 4 years.  The budget calls for about $1 trillion of tax increases and about $875 billion in spending cuts over the next 10 years.  The spending cuts come from reduction in federal health care programs, domestic and military spending and reduced interest on borrowed money.  This budget presents an obvious solution to our country’s financial problems, increased taxes while cutting spending.  This is what an American family would do if they faced financial difficulty, get a part-time job and lower the heating a little bit.  Americans know this, fighting two wars and a severe financial crisis without providing proper funding has resulted in big problems.  As unappealing as it is, most American are not free loaders and are willing to pay increased taxes if it will get us out of this mess.  Most Americans are not free loaders despite what Romney believes.

Unfortunately, Republicans, especially those in the House who must also approve a budget, do not see it this way.  The Republican plan calls for reducing spending only.  This is akin to solving your financial problems by turning down the heat, selling the house, stop buying food and eliminating 6 packs (a really drastic measure).  The Republican plan calls for major cuts to almost all programs in America.  The plan calls for transforming Medicare into a voucher program for the states.  This will effectively destroy Medicare as we know it.  Why anyone would suggest eliminating Medicare that  has helped almost all retired Americans, including the mothers and fathers of those in congress, over the last 60 years, defies reason.  But Medicare does have problems, it’s going bankrupt.  But rather than killing the system, let’s fix it.  People are living longer now, so why don’t we adjust the age of eligibility for Medicare from 65 to say 68 or 70.  This only makes sense.  Congress on the Democratic side should stop fighting an increase in the eligibility age and start fighting to save Medicare.  In addition, Medicare is paid for by a 1.45% payroll tax placed on employees and their employers.  This small amount used to be enough to pay for Medicare services.  Now though, with the high cost of medical care and fewer workers, 1.45% won’t cover the costs.  The answer should be obvious, even to a Republican Congressman, increase the payroll tax on the employee and the employer to say 2% or 3%.  This will still result in the best and cheapest medical service you can buy.  Let’s tell Congress on both sides to fix the system rather then destroy it.

Terry AmRhein