Politics

Get Serious About The Deficit and Cut Military Spending

By Maxwell Abbott

Democrats and Republicans agree that the federal deficit is a serious problem for the stability of American economy. But over the past few weeks, both parties have fought major battles on how to address this problem. The Democrats won the first round when last week, when President Obama signed a six-month extension of emergency unemployment benefits, surmounting Republican objections that the $34 billion measure would add too much to the deficit. The conflict this week is over the extension of the Bush tax cuts, which are set to expire December 31. As expected, Republicans are fighting for extension of the entire package while many Democrats, including President Obama, vowed to keep them for families making less than $250,000 a year. It is estimated that keeping the tax cuts for households that make more than $250 thousand a year will cost about $40 billion a year. Treasury Secretary Timothy Geithner argued that tax increases on the richest Americans are necessary "to make some progress bringing down our long-term deficits." $34 billion and $40 billion are surely not trivial sums. But if Congress and the Administration are sincere about tackling the deficit, it should confront the biggest expense of federal funds: military spending.

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Full post as published by PR Watch on July 27, 2010 (boomark / email).