Before Obama speaks, I offer the following budget outline:
Revenues: No change in p/r or Bush cuts for 2013
For AGIs over $1MM either revert to 39.6% rate OR keep current rate and limit deductions such that overall revenue gains would be at least the same.
Incent the repatriation of offshore bank accounts.
Eliminate Corp welfare (e.g., oil subsidies).
Reduce Corp rate to 25%
Keep 100% ITC for 5 years, thereafter phasing down in a manner to incentivise near-term capital spending.
Entitlements: Means-test for SSI and Medicare. Those with, say, $20MM in liquid investments do not qualify.
Increase cap for SSI/Medicare contributions.
100% electronic medical records in central DBs.
Change reimbursements for Medicare/caid from fee for service to capitation/salaries.
Reward quality outcomes and controlled utilization with bonuses.
Punish over-testing and redundant treatments.
Defense: Redeploy "occupation" armies in Germany and Japan.
Phase-out cold-war era weapons systems.
Use DOD-supported schedule of cuts (not too far from sequester-levels).
Energy: Invest in natural gas, wind, solar, geothermal and nuclear.
Increase subsidies for elect and nat gas vehicles.
Education: Invest/subsidize online alternatives as well as traditional schools
Keep it going, you had hit many nails on the head including us readers....you are an asset to this screwed up board (thanks to Yahoo) are you under cover and we really know you? whether we like it or not brace yourself....at least we know what to expect.
Thanks! ... I am concerned that we may be in for a correction on the risks/implications off an impass on the "fiscal cliff" and the red-herring "debt ceiling" similar to a couple summers ago ... cursory "analysts" may take a quick look at TXT and conclude it will be hurt in the same way as all the industry if the deep cuts come ... but, hang in there ... all will be well in time .... L.
BUT, if Boehner negotiates in bad faith and/or the remaining t-bags obstruct, as usual, Obama can simply do nothing and let the Bush cuts expire for everyone and let the sequester make its draconian cuts ... the poetic justice is that Obama can rightly blame the extremists for increasing taxes on the middle class and cutting defense ... WTH, they blamed him for everything that went wrong for 4 years (including natural disasters)...
Looks like this scenario is more likely ... great article in today's WSJ (12/22) on behind-the-scene negotiations ... Obama has been a tough customer ...
Boehner: "I put $800 billion in tax revenue on the table. What do I get for that?"
Obama: "You get nothing. I get that for free." (p.A6)