Isakson: Revenue’s been dealt with, on to spending
The fiscal cliff is dead. Long live the fiscal cliff!
If you were unsatisfied with the deal struck last week or just miss the D.C. drama, fear not. We’ll be back at the abyss soon.
In March, the so-called sequester budget cuts stand to kick in; appropriations for federal operations will dry up; and the Treasury will run out of ways to pay the bills without raising the debt ceiling. As Congress faces that unholy trinity, Georgia’s Johnny Isakson will be right in the thick of things.
The second-term GOP senator was named Thursday to the Senate Finance Committee, which handles those big budgetary matters. Having to face those three pressures at once actually gives Isakson “some degree of optimism.”
“Because it is such a confluence of things, maybe we’ll get a macro deal instead of a micro deal,” Isakson said by phone Thursday.
Isakson has yet to attend his first meeting as a Finance member, but he knows where he wants the debate to go. “I think the revenue issue has been dealt with,” he said. “I know the president probably thinks there is some more revenue somewhere, but we’ve had the revenue debate. No one can say that wasn’t a thorough analysis of the revenue situation.”
Now it’s time to tackle spending, especially Social Security and Medicare.
“Most everyone [in the Senate] understands Social Security is the easiest to fix without harming current beneficiaries or beneficiaries in the reasonable future,” he said. Raising the eligibility age gradually over time is one way. Two others are making benefits less generous for high earners or tying benefit increases to changes in prices rather than wages.
Medicare, though, is “the big, big consumer of dollars,” Isakson said. It’s “the big gorilla” that’s “already running rampant.”
He prefers the “premium support” plan pitched by Rep. Paul Ryan and some Democrats. “That way you can gauge the cost [to taxpayers] and you engage the consumer more” in being cost-conscious than with today’s fee-for-service plan.
Whatever the specifics of a March deal, Isakson emphasized the need to let the legislative process work. He reported “universal frustration” among senators that last week’s deal was struck “by two people [Senate GOP Leader Mitch McConnell and Vice President Joe Biden] in a back room.”
He noted the irony that last week, while those talks went on behind closed doors, the Senate engaged in a now-rare regular order of business, with debate on the floor and the opportunity for all senators to offer amendments.
“I think [regular order] would help the public to understand the difficulty of the problem, but also the mechanism of the solution,” he said.
Isakson prefers to work off the Simpson-Bowles proposal introduced in late 2010. That plan would reduce deficits by $4 trillion over 10 years by cutting spending and making the tax code simpler and flatter to generate more revenue.
He expressed great frustration with President Barack Obama, who commissioned the plan but whose own proposals, especially for taxes, contradict its methods: “I don’t know if he was afraid of it, or if he is so bent on spending and raising revenues, and so averse to fiscal accountability, that he didn’t want to bring it up.”
In any case, Isakson sees no good reason for Washington to break down into its own March madness. “All the solutions are on the table,” he said, “it’s just a matter of which ones you pick up and use.”
– By Kyle Wingfield
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191 comments Add your comment
MarkV
January 7th, 2013
1:26 pm
Centrist @ 1:15 pm
An irrational, unsupported claim by Alan Simpson is your argument and evidence?
td
January 7th, 2013
1:32 pm
You all need to remember the important fact that if spending cuts are not made then our credit rating is going to be lowered.
Centrist
January 7th, 2013
1:36 pm
@ MarkV – Simpson was just half of the top of the Simpson – Bowles Commission which President Obama instituted. Erskin Bowles is also on board with their bi-partisan results have been often referenced by the President, but largely ignored when it has been time to apply.
sailfish
January 7th, 2013
1:45 pm
Hey congressman! leave that social security alone! Cause all in all, your just another brick in the wall
MarkV
January 7th, 2013
1:45 pm
Centrist @1:36 pm
Why do you think I did not know that about Simpson? While I have a quite good respect for Alan Simpson, I am also aware of his propensity to make rash statements without adequate support.
As for the President “ignoring” the result of the commission, which, among others, Rep. Ryan voted against, I have already commented that earlier.
getalife
January 7th, 2013
1:47 pm
td,
Our credit rating was downgraded because of the gop debt debacle I.
Now you want another debt debacle II.
We need fiscal sanity and not insanity playing with a default.
HDB
January 7th, 2013
1:48 pm
If the cap were lifted COMPLETELY off of FICA taxes, Social Security would be solvent.
A lot of the spending problem lies in redundancy in the government; All three major branches (the Marines are under the Department of the Navy) have their own procurement arms….consolidate those and many of the cost overruns could be reduced. Eliminate no-bid contracts save in cases of national emergencies….and that would reduce outlays to contractors. There are methodologies that could be invoked by the Defense Department to cut spending…like all savings can be rolled over into the next year’s budget…..so the outlay for that next fiscal year would be reduced by the amount rolled over………….
td
January 7th, 2013
1:51 pm
getalife
January 7th, 2013
1:47 pm
td,
Our credit rating was downgraded because of the gop debt debacle I.
Now you want another debt debacle II.
We need fiscal sanity and not insanity playing with a default.
Our credit rating was reduced because we did not reduce any debt. It had absolutely nothing to do with taking the raising of our debt limit to the brink. The ratings agencies just said last week that they will lower our rating again if we do not actually reduce debt. Those are the facts my friend.
breckenridge
January 7th, 2013
1:54 pm
Centrist you are correct that Obama has ignored the recommendations of the Simpson-Bowls commission, in much the same manner that Boy George Bush ignored the commission that made recommendations on Iraq strategy. Actually Bush ignored all but one recommendation -send more troops. So apparently the presidential strategy for the 21st century is appoint a panel to stall, buy time, do nothing, kick the can, and then ignore recommendations of those who actually have a clue.
Lil’ Barry you stated that the national debt has increased under Obama at 4 times the rate it did under Boy George Bush. You a bit on the high side there. The debt increased $4.8 trillion in 8 years under Bush, $6 trillion in 4 years under Obama. That’s actually 2.5 times faster than the Bush rate.
The obvious conclusion is that they all suck.
td
January 7th, 2013
1:55 pm
Why is it that the majority of states have been about to actually cut spending (not just the expected rise in future spending) by 10 to 30% since 2008 and yet the Federal government can not cut not one red cent?
Dusty
January 7th, 2013
1:55 pm
MarkV
I am wondering what you consider “sky is falling high” for the national debt?
Do you work for the USA space program? Your conclusions. are certainly “spacious”, not to mention nebulous. .
Aesop's Fables and other Lib Economic Theories
January 7th, 2013
1:56 pm
The credit-ratings agency Moody’s said this weeks’ deficit reduction deal did not produce “meaningful improvement” to the issue at hand. That issue: the debt burden and economic output. Moody’s warned that if improvements were not made, the agency could downgrade the U.S. credit rating. – NPR
And, of course, they are talking about obozo’s tax hike on the poor and middle class.
joe
January 7th, 2013
1:56 pm
Start with a 15% across the board cut for all departments…that way, there are no favorites being played, no slight of hand crap. Then, cut our all waste and consolidate or eliminate some of the government agencies that we no longer need.
Dusty
January 7th, 2013
2:02 pm
BOY BRECKENRIDGE,
Anything new in your life besides bashing Bush for Obama’s short comings? Doesn’t look like it.
MarkV
January 7th, 2013
2:07 pm
Dusty @1:55 pm
“Your conclusions. are certainly “spacious”, not to mention nebulous.”
Dusty,
And which “conclusion” are those? Why don’t you, for once, write specifically what in my writing you disagree with, and your arguments to support your viewpoint, rather than making truly nebulous accusations?
Just trying to make you understand: If someone with an annual income of $100,000 took a mortgage of $100,000 at an extremely low interest rate (roughly equivalent to the national debt/GDP ratio of the US now), would you think that it was a ”sky is falling” obligation?
I
Reality
January 7th, 2013
2:10 pm
The debt ceiling games need to end. Can’t we all agree on that part?
Yes, we need a balanced and reasonable budget. Can’t we all agree on this much? The issue is HOW to do this, right?
In my opinion, the first place to look is military spending. It is very bloated and with the withdrawls from the wars in the middle east, why not cut here first?
The next place to look is for improved federal government efficiencies. Certainly there are redundant offices/efforts in many places.
I feel that these two things alone will go a long way to cut spending. In my opinion, social security and medicare should be last on the list to cut (note that this is different from reform). There does need to be some sort of reform in these programs to reduce cost, espcially long term.
Lil' Barry Bailout - OBAMAPHONE!!!
January 7th, 2013
2:14 pm
The debt ceiling games need to end. Can’t we all agree on that part?
———
Not as long as Obozo denies he has a spending problem. The debt ceiling is one of the few points of leverage Real Americans have to get Democrats to put country ahead of party.
Reality
January 7th, 2013
2:15 pm
Aesop’s Fables and other Lib Economic Theories….
You really need to stop. President Obama is our standing President. He is a two term President. You may disagree with his policies but that does not give you an excuse to disrespect him.
Honor the office at least. Honor the Country at least. Stop being a child.
Reality
January 7th, 2013
2:17 pm
Lil’ Barry Bailout – OBAMAPHONE!!!
What I said to Aesop’s Fables also applies to you (if you are not the same person —–> likely).
getalife
January 7th, 2013
2:20 pm
td,
Your speaker cut and ran from a 4 trillion cut and still cowers from our President. They do not have the guts to work with our President.
gop.
Blame them.
Kyle Wingfield
January 7th, 2013
2:21 pm
iBS @ 12:16: Isakson didn’t mention that option. In this column, I was reporting his thoughts rather than my own.
breckenridge
January 7th, 2013
2:21 pm
Dusty my boy I’m afraid you’re nothing but a partisan hack. You hate Obama and democrats so much you just don’t have the ability to be objective. On the other hand I call a spade a spade, regardless of party affiliation.
George W. Bush was a terrible president, in the bottom 5 of all-time, right there with Jimmy Carter. Obama has been a poor president to date, and very poor on domestic policy. But he has one term left so there is no way to close the book yet. And after he is out of office it will take a few years for presidential historians to come up with a final tally.
The last good president we’ve had, in my opinion, was George H. W. Bush. His handling of Desert Storm was a master stroke of diplomacy. He then tried to do the right thing, raise taxes to take on the deficit, and it got him sacked after one term.
If I were to make a recommendation, however, it would be that we amend the Constitution to prohibit evangelicals (Carter, Boy George Bush) from holding the office of president. And if we kicked the evangelicals out of Congress as well………hey all the better.
td
January 7th, 2013
2:25 pm
Reality
January 7th, 2013
2:10 pm
Our defense budget is about $800 billion per year. Of that we spend about $300 billion on salaries and benefits of our troops and another $300 billion on the equipment our military needs (ships, planes, guns, ammo). How much do we cut?
Remember our Deficit spending was 1.3% trillion so if you cut the entire military out then you still have to find another $500 billion just to balance the budget. After you do that then you can start dealing with the $16.4 trillion in debt. How much should we spend per year to pay off the debt?
clem
January 7th, 2013
2:26 pm
and dusty thinks business leaders are ethical….he needs to read taibbi rolling stones….nothing but corruption from our banking industry. rampant thruout most businesses too. i doubt they even teach business ethics in college anymore.
Lil' Barry Bailout - OBAMAPHONE!!!
January 7th, 2013
2:26 pm
You may disagree with [Obozo's] policies but that does not give you an excuse to disrespect him.
———
I don’t disrespect Obozo because of his policies. I disrespect him because he’s an America-hating dirtbag. I hope that clarifies things for you.
td
January 7th, 2013
2:27 pm
getalife
January 7th, 2013
2:20 pm
td,
Your speaker cut and ran from a 4 trillion cut
Can you please send me a link that covers those actual cuts? I did not think so because all those cuts were nothing more the smoke your President was blowing up your rear.
getalife
January 7th, 2013
2:29 pm
td,
I will not do your research for you.
Facts matter.
getalife
January 7th, 2013
2:31 pm
Dusty is female and she is trying to be good.
” I disrespect him because he’s an America-hating dirtbag. I hope that clarifies things for you.”
It does not.
How does he hate America?
mike
January 7th, 2013
2:34 pm
http://www.intellectualtakeout.org/sites/www.intellectualtakeout.org/files/chart-graph/Federal%20Tax%20Revenues%20vs.%20Government%20Spending.png
Take a look at this chart. Notice that if we simply reduced federal spending to approximately 2007-8 levels, we would have no deficit.
Surely, we can find a way to do that. But, since Social Security and Medicare do not add to the deficit, I don’t see why we can’t reduce defense spending.
Aesop's Fables and other Lib Economic Theories
January 7th, 2013
2:34 pm
I do disrespect obozo because of his policies and quite a few other things.
See, me and Lil Barry are two different people.
Aesop's Fables and other Lib Economic Theories
January 7th, 2013
2:36 pm
Damn, krugman finally got something, yeesh, I sure hope the world doesn’t end today -
“Yes, I’ve heard about the notion that I should be nominated as Treasury Secretary. I’m flattered, but it really is a bad idea,” writes Krugman.
getalife
January 7th, 2013
2:37 pm
Who are you to disrespect our President?
What have you done to compare?
sailfish
January 7th, 2013
2:38 pm
lil barry
Your projection is showing-
Beyond the Middle of the Road
January 7th, 2013
2:38 pm
I was very disappointed with the so-called Fiscal Cliff deal. No spending cuts, really? That said, revenue still can’t be ignored, and waste, pork and excess spending everywhere, including and especially the military, must be cut. As for actually slashing or excising programs and projects, that needs to reviewed, if possible, in a nonpartisan way. For example, Public Broadcasting is such a tiny outlay it’s silly how much attention it’s given. And by the way, cyberwarfare is primarily handled by the Department of Homeland Security.
Lil' Barry Bailout - OBAMAPHONE!!!
January 7th, 2013
2:43 pm
Relax, Beyond, the sequester was merely delayed two months. Obozo’s tax increase leverage is gone. Do nothing and spending is automatically cut. Taxpayers win.
Reality
January 7th, 2013
2:45 pm
td -
According to the follow article…
http://www.foxbusiness.com/industries/2012/10/12/us-budget-deficit-narrows-in-2012/
The deficit DECREASED under President Obama in 2012. According to this FOX news article, President Obama increased revenue and also decreased spending!!! Please give credit where credit is due.
Now, it states that the budget gap is $1.089 trillion from 2012. This is far from the $1.3 trillion that you mentioned.
Now, according to the following for 2012….
http://www.usgovernmentspending.com/defense_budget_2012_3.html
The military accounts for 25% of our spending, which is the largest chunk. Note that this “evil” welfare accounts for all of 12%. The second largest chunk is healthcare at 23% (wonder why President Obama needed to pass healthcare reform?). And, the third largest chunk at 22% is for federal pensions – and this includes miliatry pensions.
Anyone can see that most of our money is going towards the general catagory of ‘military spending.’ If you cannot see this, then I am sad for you.
Dusty
January 7th, 2013
2:46 pm
BOY BRECKENRIDGE (like you try to demean Bush by calling him “BOY”)
You got just about everything wrong. That takes talent of a sort.
1-I’m not a boy.
2-I’m not a partisan hack (like you?)
3-I don’t hate Obama.
4-G.W. Bush and his father were good presidents.
5-After 4 years, Obama’s record still looks dismal.
6-We do not need to change our long standing Constitution just because you do not like people of faith such as those who wrote our Constitution.
Aloha…..
getalife
January 7th, 2013
2:46 pm
“Do nothing and spending is automatically cut.”
How much?
Jefferson
January 7th, 2013
2:47 pm
Revenue is in round 1, more to come. I guess you missed the election, Johnny.
Lil' Barry Bailout - OBAMAPHONE!!!
January 7th, 2013
2:49 pm
How much?
I will not do your research for you.
getalife
January 7th, 2013
2:50 pm
A few billion.
Lil' Barry Bailout - OBAMAPHONE!!!
January 7th, 2013
2:51 pm
The threat of higher taxes on the middle class is gone.
Round 2 is all about the “balance” your dirtbag is so fond of talking about–spending cuts.
sailfish
January 7th, 2013
2:56 pm
Regarding the hagel appointment, can I get an amen that sen lindsay graham is a major league a-hole?
sailfish
January 7th, 2013
2:59 pm
Lil barry is all upset about the mythical obamaphone but looks the other way when big oil gets close to 40 billion in subsudies, welcome to the theatre of the absurd.
Dusty
January 7th, 2013
3:01 pm
getalife
I appreciate your keen observation that i am a do-gooder girl. I hope that is complimentary.
Then you ask another “why do you disrespect our president?”
Have you asked yourself that question when you have “disrespected” Bush as long as I can remember?.
Cheesy Grits is gone but not forgotten
January 7th, 2013
3:04 pm
6-We do not need to change our long standing Constitution just because you do not like people of faith such as those who wrote our Constitution.
People of faith didn’t write our Constitution.
In fact most of the founding fathers weren’t very religious men.
Thomas Jefferson certainly wasn’t and George Washington rarely attended church.
They founded the country more on the idea of a modern Roman republic far more than getting any inspiration from the bible.
sailfish
January 7th, 2013
3:08 pm
cheesy
They were more influenced by enlightenment thinkers than the bible. After the renaissance, religions took a big hit, always talking about paradise but ignorant of the life here on earth.
“It’s good to be the king”, sayeth mel brooks and he was damn right!
Lil' Barry Bailout - OBAMAPHONE!!!
January 7th, 2013
3:08 pm
sailfish: Lil barry…looks the other way when big oil gets close to 40 billion in subsudies
—–
Do I? Link please.
Dusty
January 7th, 2013
3:12 pm
Sailfish
May I ask why you hate Sen. Graham when he is one smart fellow? I haven’t heard the latest… errr. “dirt” on him.
sailfish
January 7th, 2013
3:14 pm
lil
Google is your friend-
http://www.bloomberg.com/news/2011-02-10/house-democrats-target-40-billion-in-big-oil-tax-breaks.html