Better ways to reduce our debt over 10 years

info@islandpacket.comSeptember 23, 2013 

The Republicans have made a stand. Apparently, the spending problems we have here in the U.S. are caused by food stamps. Dropping 3.8 million people from the program is the way to save the budget, even though 75 percent of recipients are on assistance for less than nine months; 72 percent are families with children, including veterans; and the remainder are primarily elderly or disabled. Very few are able-bodied adults.

Instead of cutting $ 40 billion in food stamps for the poor over 10 years, let's look at a few alternative suggestions to raise revenue:

  • Oil industry "depletion allowance" tax break. President Ronald Reagan suggested in 1985 that this tax break be canceled. This is just one of many tax breaks the industry enjoys, while making record profits. Savings: $ 600 billion over 10 years.

  • Limit charitable, home-mortgage and other deductions to a maximum of 28 percent. Savings: $583 billion over 10 years

  • Limit the value of Individual Retirement Accounts. The wealthy get to undervalue stocks and assets, then move them into an IRA, where they revert to their actual value. Remember Mitt Romney's $87 million IRA? Did your employer offer that? Savings: $200 billion over 10 years.
  • These three changes would add nearly $1.4 trillion to the budget over 10 years. Just these changes would substantially reduce the national debt of $17 trillion.

    And they would allow poor people to still receive food assistance.

    Lynn Tyson


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