Defense could get key role in next phase of deficit reduction

Defense could get key role in next phase of deficit reduction

Wow, has it been a depressing summer in Washington. And by all accounts, it’s going to be a depressing — and frantic — autumn: Although Congress is out of town until September, there’s already a lot of talk about which lawmakers will be named to what Hill people are calling the “super committee,” and which the rest of us call the “Super Congress.” This 12-member, extra-constitutional, bicameral panel will be charged with coming up with an agreement to avoid the Doomsday Device, and a report Tuesday could give a ray of hope to the military-industrial complex, which wants to avoid any further budget reductions: House Armed Services Committee Chairman Rep. Buck McKeon is considered a “major contender” for a spot on the Super Friends, Bob Cusack reports in The Hill newspaper.

McKeon is a key defense advocate on the Hill, and unlike other potential members of the Super-Congress, he has a strong incentive not to let the Doomsday automatic budget sequestration take place. The Pentagon and the defense industry have howled about the possible consequences of a potential net $850 billion spending reduction, and if McKeon gets a seat on the Super-Congress, you’d better believe he’ll be hearing from them.

According to Cusack, two other HASC members could potentially make it onto Team America, although they’re both considered “long shots:” Texas Republican Rep. Mac Thornberry or Virginia Republican Rep. Randy Forbes. Both are strong supporters of military spending, but with only a total of three House Republican spots available to Speaker John Boehner, Chairman McKeon might have an edge. Then again, Boehner might not pick any defense advocates — the Washington Post’s Paul Kane did not include any Armed Services lawmakers in his rundown of potential Super Congress members.


No matter who ends up on the panel, the Pentagon has made its position clear: Secretary Panetta says DoD has suffered enough and done its part in sacrificing portions of its planned future budget growth. Panetta says the Super Congress must reform entitlements — which fall on the “mandatory” side of the budget and make up most of what the U.S. spends every year — and deal with taxes … somehow. But it should not come back to the Pentagon with more cuts, he says. As we’ve theorized here before, that may not be politically doable, but there is an accounting trick that might come into play:

Panetta and other top DoD leaders say they’ve been planning since President Obama’s speech in April to absorb around $400 billion worth of reduced growth over the next while — maybe 10 years, maybe longer — and it appeared with the initial round of $350 billion in reductions that the Building was even getting off a little light. If the Super Congress makes another “cut” of $50 billion to get DoD back to the $400 billion against which it’s been planning, everybody wins — DoD looks like a sport, Republican and Democratic members of the Super Congress members can look like hardliners, and the Pentagon can just submit the same fiscal 2013 program it’s been planning to work up all along.

Whatever happens, Washington is guaranteed to remain a waking nightmare for budget, defense and policy wonks until Thanksgiving, at the earliest.

UPDATE 8/10: Congressional leaders have been announcing their picks for the Super Congress, and neither McKeon, Thornberry nor Forbes is among them. Ohio Sen. Rob Portman, a Republican member of the Senate Armed Services Committee and a longtime Washington budgeteer, will be on the Super Congress, but it isn’t clear whether he’ll be wearing his defense advocate hat or his tax opponent hat.

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We owe 14,587,727,605,443.44 and they’re fighting about 400,000,000,000.00 over how many years.
We need to get serious!

Good Evening Folks,

Lets have no big tears for the The Defense Budget. The US has been in a state of war now for nearly ten years. And the General and Admirals, all retired are ready to, have done nothing to reduce the capital expenditures of the budget.

With in the CONUS there are over 400 active/reserve/National Guard military bases most are underused, the USAirForce has 217 of these bases. Overseas basing especially in Asia serves no strategic function for the US military they are political legacies of the second world war. Money has been spent on wasted programs such as the FCS, EFV, F-22, LPD-17 billions of dollars has been thrown at these either canceled or should have been canceled years earlier programs.

The current proposed budget cuts are really no where near enough and because of this decade of excess will be deeper then they could have been. A more realistic DoD budget cut would be$1.7 trillion over ten years. This still would mean raising taxes.

As far as entitlement programs go, I find it rather ironic that most of the posters here who work in the industry and have been fighting for more defense spending and supported the canceled programs mentioned above will be the ones that will have to work longer, have reduced Social Security benefits and rationed senior medical care. Us old boomers are already vested into the system, retired and made our money years ago.

Wall Street and S&P have exposed economic reality to the US. By being in denial for ten years now the cuts that will have to be made will cover more programs and be a lot deeper.

ALLONS,

Byron Skinner

A serious approach would be to try and remove the corruption and pork out of the defense budget. No more lobbyists, no more favors to retired generals and admirals on the board at Lockheed, programs held accountable for massive overruns, etc… I know this has practically zero chance of actually happening, but if someone in DC actually said it I would at least feel like someone has given the problem some real thought.

Just taking a dull axe to the budget is the sort of knee-jerk, short-sighted thinking that has created much of this mess in the overall federal budget. Our toys are worn out, and 2.75 wars has done nothing but accelerate this. Cancelling development programs now means simply pushing the inevitable back a few years (sound familiar?).

Hey, howzabout Congress take a look at themselves and their ridiculous “entitlements” they get even after just serving one term! I’ll bet that’s one of the *LAST* things they look at (if they look at all)…

Gimmee a break Byron, you sound like a press spokesman for some Democrats campaign. reduced Social Security? You mean like maybebumping up the full benefits age because life expectancy has been rising but that number has been fixed how many decades? rationed Medicare? You mean like expecting some elderly person with a pre Social Security income of like a quarter of a million annually to actually pay more for coverage? Wow, how harsh. I’m no Republitard fan but spare me and the rest of us the DemoRatic plank talking points please.

Again, if we weren’t having to be everywhere in the world doing everything for everyone, we wouldn’t need such a large exspensive military. I am no pacifiied Lib either, just a realist. Upholding and defending the constitution from all enemies foriegn and domestic also maybe means the military industrial complex curbing their demands in the interest of over all US national interests. Sacrafice is not just on the battlefield. In my world, a warriror puts his/her people first, not their own self interests.

“Us old boomers are already vested into the system, retired and made our money years ago.”

So as long as you get into a pyramid scheme (like Social Security) early enough, it is OK?

The DoD is already finaly looking at realistic ways to cut spending by buying direct rather than through contractors or via bloated specific contracts on off the shelf items. We are now localy purchasing a lot of items that cost 10 to 100 X more through contracts such as 10.00 hammers vs 700.00 contract hammer, same for tools — electronics — repair parts — paint — office supplies — tires — small arms parts and so on. I agree a lot of non US bases need to be closed, especialy the ones in so call US territories where the residents are not citizens but still get SS, Medicare, Medicade, Welfare and so on _ just doing away with giving benefits to these countries with be a significant reform and cost savings. The war was not the driving factor in this deficit — google Fed fund research programs and you will see a list over a trillion dollars to study asian elephants, kenyan crops, catfish mating, and a couple hundred other BS items all given tax payers money and not producing any work for more than a handfull of people. That is where they need to start their cuts. DEFENSE — INFRASTRUCTURE — COMMERCE IS WHAT THE GOVT IS SUPPOSED TO BE PROVIDING NOT IRRELEVENT RESEARCH OR BENNEFITS TO NON US CITIZENS.

Instead of decreasing spending, why not increase revenues? Why don’t the people on this and every other defense blog stop bitching about the government, over spending, etc and actually do something to help the economy. Make a business, create jobs, more money for defense. There are plenty of support programs (private and public) to help you create a business. Get off your asses and ask what you can do for America. Oh, and vote for smarter politicians.

Id second BOTH of your suggestions! The problem is that in a flat or declining economy its very hard to keep a business running after you get the business cards printed. Aside from the exorbitant tax rates applied to startups, and existing businesses, there are all of the regulations and directives that must be followed (else Uncle will shut you down!). Then there is the issue of having someone willing to pay for whatever it is that your new company might provide. if all of them are hording cash in hopes of actually being able to pay the taxman come April 15th, there is less cash available for buying anything else.

I dont think anyone is in doubt that increased revenue is a good thing, its just a matter of simplemindedly obtaining it through increased taxes or by what some would say is an equally simplemindedly concept that revenue will increase by across the board tax cuts. Each has their own feelings there.

The second suggestion is a slam dunk!

Geez, so the only legal Ponzi schemes are in the Federal Government? Could this be a multi-trillion dollar cases of do as I say not as I do?

Remind me again exactly why, other than the laws against them, is it that pyramid schemes are frowned upon by the legal system? :-)

At some point in the early 400’s AD the Romans decided that their deployed legions were just too expensive, and that it would be cheaper, easier, less politically devisive, more civilized, and just all round nicer and kinder, to simply defend the walls of Rome from the barbarians.

BAD IDEA!

I’d question what Guard bases (which are mostly funded by their home states) and the Air Force in general (who’s airlift and control missions aren’t easy consolidated) have to do with the federal defense budget argument, other than the fact you found yet another way to try and denigrate the USAF in one of your rants. As for your entitlement drivel… as long as you get yours right? You old boomers are drawing far more heavily on the system than you ever contributed and WE’RE paying you right now at the expense of the trust being broke when we retire.

Have you ever heard the term “Pax Romana”? There is a reason it was coined.

So — my whiz wheel sez that a defense budget of $170 billion a year:

1. Amounts to roughly 1.2% of GDP (depending of course on the state of the economy — I’m using 2009 as a baseline)
2. Fails to live up to NATO standards
3. Represents a 75% reduction (including war costs)

Thank you so much for playing, Mr. Skinner. If you wish to be taken seriously, I suggest you make a serious contribution to the discussion.

There are more people on government Welfare programs than there in the US military and they donot pay Taxes. I do believe that the DemocRATS would actually choke on these two words CUT SPENDING

Good Morning Folks,

Heads in the sand. The game is up. Cutting overheads is no longer an option, maybe ten years ago it might have worked but it to little to late.

To Thinking ExUSAF. You forgot to mention that by 400 CE all those Roman Legions were in fact foreign troops conscripted into the Roman Military. The Roman citizens were in fact trying to keep them out of Rome. The Vandals did pay a visit, in fact two visits and well the next big deal in Rome was Pizza​.re. Edward Gibbons “The Decline and Fall of the Roman Empire Vols. 2 & 3″ (1781), the Vols. 4,5,& 6 (1789). This is still the definitive History of later Rome.

As far as the Boomers got we have either made it or well there is the safety net. As for myself I always worked in the private sector, never in a welfare job or career military on a Government payroll with a fat pension. I draw no military retirement pay, so cut the cr** about me benefiting form what has or will take place.

I retired at 50 and don’t plan to draw any SS till I’m 70.

If you are under 50 right now you are going to get screwed. Wall Street is now in control, think 1870 not the Roman Empire. About the only thing that will stay the same is eligibility for Medicare it will stay at 65 or in fact might drop to 60. Thats the age where private insurance become unprofitable.

Your Social Security benefits will still be there but will have lost about 40% of Social Securities purchasing power that it currently has. Right now it looks like early Social Social security will be at 65 with 70 being the retirement age and folks with their own resources will have to wait till 75 to draw any Social Security benefits.

ALLONS,

Byron Skinner

Welfare job? I’d love a definition of that.

Here we go again with the DemocRAT favorite song, Cut Defense spending. If I remember correctly there are more people on government welfare programs than in the military and those people do not pay income tax, social security tax etc. But what would expect coming from a party that believes that only RepublICANS should be working and spreading their wealth around not the DemocRATS wealth.

That’s very nice. But for the rest of us poor working stiffs, who do you suggest staying in the work force til we’re 70 ? Seems like a bridge too far for most people and bankruptcy really stinks at 65. Especially for those who have dedicated their lives to defending this nation.

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