BUZ LIVINGSTON: Simpson-Bowles CliffsNotes version

Published: Thursday, October 18, 2012 at 04:09 PM.

After it’s all said and done, taxes would increase along with much higher spending cuts, roughly two to one spending cuts versus tax increases. Medicare enrollees would face higher premiums/co-pays if the system had cost overruns. Simpson-Bowles also automatically triggers an increased Medicare eligibility age if costs continue to outstrip inflation.

Along with sharp domestic spending reductions like the obligatory dumping of Big Bird, Simpson-Bowles also included military spending cuts of particular interest to Northwest Florida. It eliminated the Osprey completely while the F-35 program was sliced by 50 percent. Importantly, it doubles the number of defense contractor positions eliminated.

I’m glad Simpson-Bowles got shot down. The spending cuts and tax increases would trigger a recession. Akin to the ugly baby, it encapsulates the problem facing America. We face painful, ugly but essential choices. Blaming politicians is simple, neat and wrong. 

We want it all, we want it now and we want someone else to pay for it. Perhaps the magic fairy will wave her job-creator wand and, voila, our problems will vanish. Either we fix things or the bond market does it for us. 

Buz Livingston, CFP offers hourly financial planning and fee-only investment management to clients along Florida’s Emerald Coast. He can be reached at 267-1068, Buz@LivingstonFinancial.netor www.LivingstonFinancial.net.



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