One Step….Two Step

December 5, 2012

Does everyone know how to do….

 

 

 

The one step….. two step?

 

 

 

Tim Geithner presented the….

 

 

Democratic

 

Reach for the sky

 

Fiscal cliff solution

 

 

 

That landed like a lead balloon

 

 

 

It was the same offer from 2011

 

 

 

I guess it took them a long time

 

 

To come up with that?

 

 

 

The Republicans huddled and….

 

 

Went to their files

 

 

And pulled out their proposal

 

 

From…..

 

 

2011.

 

 

 

That is what I call progress

 

 

 

 

It has been 1 month since

 

 

 

The presidential election….

 

 

 

 

And these are my sins….

 

 

 

 

We are still back in 2011.

 

 

 

 

I have been reading a lot about this topic

 

 

Since Finance is my bag

 

 

 

 

Nobody wants to pay more taxes….

 

 

 

 

But the Government cannot

 

 

Continue to spend

 

 

 

33% more than they take in.

 

 

 

 

 

Raising the taxes from 35% to 39% for

 

 

The 2% highest earners

 

 

 

Is mostly symbolic

 

 

That does not mean they will actually

 

 

 

Be paying higher taxes

 

 

 

 

Without touching the deductions and loopholes

 

 

They will still be paying

 

 

14%

 

 

 

In order to increase revenue

 

 

 

You can’t just increase the rates

 

 

You have to close loopholes

 

 

 

 

That would bring in more revenue

 

 

 

 

Taxing the highest earning 2%

 

 

Will not solve the deficit issue

 

 

It only scratches at the surface

 

 

 

 

 

We are going to have to stick our heads

 

 

Into unchartered waters

 

 

 

 

When social security was started

 

 

The retirement age was 65 years old

 

 

 

 

The average life expectancy was

 

69 years old

 

 

 

The program was set up with the intention

 

 

 

That it had to provide benefits

 

On average for about 4 years

 

 

 

The average life expectancy today

 

 

Is 84 years old

 

 

 

 

That means that…..

 

 

Social Security is now expected

 

 

To cover

 

 

On average

 

 

 

A span of 19 years

 

 

 

 

Not…….4 years

 

 

 

 

Can you see why there

 

 

May be a problem

 

 

With this program

 

 

 

 

We all pay into it….

 

 

 

 

But as the boomers age

 

 

 

 

The support base diminishes

 

 

 

 

 

Where can we possibly look to

 

 

Save money in the budget

 

 

 

 

 

Let’s take a quick look at defense spending

 

 

 

 

1974

 

 

That was the last time we saw…

 

The defense budget under

 

 

$100 billion dollars

 

 

 

 

By the year 2000

 

 

The defense budget grew to

 

 

 

$372 billion dollars

 

 

 

 

That took 26 years

 

 

 

 

In a mere 12 years

 

 

 

 

2000 – 2012

 

 

 

The Defense Budget

 

 

Has more than doubled

 

 

 

And comes in at

 

 

 

$816 billion dollars

 

 

 

 

I think we can possibly find

 

 

 

Some savings there?

 

 

 

 

 

There has been a lot of talk about

 

 

Health Care

 

 

 

Currently the US spends

 

 

About 18% of GDP

 

 

On Healthcare

 

 

 

Other comparable nations spend

 

On average about 12%

 

 

 

A recent study by

 

 

Harvard Business Review states

 

 

 

 

“The proper goal for any health care delivery system

 

 

Is to improve the value delivered to patients.

 

 

 

Value in health care is measured

 

 

 

In terms of the patient outcomes

 

 

Achieved per dollar expended.

 

 

 

It is not the number of different services provided

 

 

Or the volume of services delivered that matters

 

 

But the value.

 

 

 

More care and more expensive care

 

 

Is not necessarily better care.”

 

 

 

 

Studies show that savings in Health Care cost

 

 

Can range from $700 billion to $1 Trillion dollars

 

 

 

Just by increasing the

 

 

Efficiencies of service.

 

 

 

 

These are just a couple examples

 

 

 

Every program should be reviewed

 

 

 

 

 

I believe there will be

 

 

A lot of finger pointing

 

 

While the Government works

 

 

Towards a solution

 

 

 

 

But it is in the best interest

 

 

Of all concerned

 

 

That a compromise

 

 

Is made

 

 

 

 

 

True saving can be found

 

 

In all programs

 

 

Without effecting

 

 

 

The integrity of any program

 

 

 

 

America is here for the long term

 

 

 

We just have to make smart decisions

 

 

 

To make sure we remain the

 

 

 

Beacon of light

 

 

 

That all other countries look

 

 

To emulate

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