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Source: Debt Commission Fights Over Freezing Military Pay, Slashing Benefits


President Barack Obama with Defense Secretary Robert Gates (left), and Navy Admiral Michael Mullen (right)

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Republicans would like you to think that Democrats have sinister plans for the post-election lame duck session of Congress, and Democrats are at pains to insist otherwise. But the one winter initiative progressives fear most is being crafted off the Hill by the White House's National Commission on Fiscal Responsibility and Reform. Though most of the commission's work occurs behind closed doors in small working groups, early reports indicate that the GOP's unwillingness to support any significant tax increases are pushing the group toward proposed entitlement slashes and larger budget cuts.

And while Americans might expect that the commission would look at all spending, some members are seemingly using their positions to advance professional interests. A source familiar with the proceedings of the working group on discretionary spending tells TPM that some commissioners, including one military contractor, would prefer to save money by freezing military pay and scaling back benefits, rather than by eliminating waste in defense contracting.

The source said that different members of the commission come down on different sides of the issue. The discussion group is led by Sen. Tom Coburn (R-OK), whose primary aim is trimming fat on the contractor side, but, according to the source, David Cote, the Honeywell CEO who was appointed to the panel by President Obama, is pushing to find savings elsewhere.

"Coburn raised concerns about all of the cost overruns and redundant weapons system," the source told TPM. "Cote made excuses for it all."

According to the source, Cote and other members, including the commission's co-chair Alan Simpson, are focusing instead on "freezing military pay, making military people pay for their health care."

"I don't think there's a division anywhere, and I don't think you can pick up that sentiment, because I certainly haven't," Coburn told TPMDC yesterday. "Nothing's off the table."

On mandatory spending issues, according to the aide, things are shaping up similarly. "We spent all but 10 minutes on benefits cuts and spent 10 minutes on raising the wage caps." Though tax hikes aren't gaining traction, the group is discussing ways to close loopholes, end exemptions, deductions, credits, etc. to limit tax expenditures.

Cote was not immediately available for comment through Honeywell's corporate offices.

The commission's report is due by December 1. House Democrats have committed to voting up or down on the package if the Senate passes it first.

Comments (65) | Join the Conversation!

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August 5, 2010 2:39 PM   

Freezing military pay and making military families pay for their health care. Boy, there's an issue that will play well in November.

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August 5, 2010 2:42 PM    in reply to mans_best_friend

You are correct. Stuff like this is making me hope that the Catfood Commission exposes itself as a sham to the whole country, not just us DFH's that are against their want to slash Social Security.

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August 5, 2010 2:58 PM    in reply to mans_best_friend

Ah but... the Commission won't report until December. This is all scheduled so that there will be no comeuppance at the polls.

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drv

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August 5, 2010 5:31 PM    in reply to destor23

Like word won't leak out already. Like Coburn didn't already try to make it clear that the Commission wants to raise taxes. Like *that* isn't telegraphing the Commission's intent to the tax-hating GOP base. Sure.

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August 5, 2010 5:41 PM    in reply to drv

But what will the commission actually do in December, after the election? Probably recommend Social Security cuts.

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August 5, 2010 11:26 PM    in reply to destor23

That's why it was created, to try to give cover to legislators who want to cut Social Security; stacked with 14 of 18 members on record as favoring such cuts.

There is no cover for cutting Social Security; any politician who votes to cut Social Security will kill his career on the spot.

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August 5, 2010 4:55 PM    in reply to mans_best_friend

Military families already pay for their health care whether it's Tri-care Prime or Tri-care standard. The days of endless free health care have disappeared and in some instances the co-pays can be extreme, as in cases with chronic illness where the member is tethered to the system or since most specialist docs are out of the country, being farmed out to civilian specialists and practicioners, labs, etc.
The care, while not being free, is good and is a sound template for all health insurers to glean.

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August 5, 2010 2:44 PM   

If you want to see accessions (succcessful military recruiting) fall off a cliff, this would be a good way to go about making it happen.

It'd be like an airline starting an ad campaign entitled "Smaller, Less Comfortable Seating, and No Beverage Service Whatsoever."

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August 5, 2010 3:16 PM    in reply to Signalman

I think they've been running that ad for a while - but you forgot "Now with extra fees for baggage we used to carry for free!"

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August 5, 2010 2:48 PM   

Freezing military pay...What a&&holes.. They risk their lives for these fools and us and they want to cut them more..Who do we call..How do we stop this outrage! Idiot COburn...Start the calls to the congress then get this to the press...local and national....NO NO NO NO! 1.800.828.0498

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August 5, 2010 2:57 PM   

Freeze military pay and make them pay for health care means a helluva lot less recruits and a helluva lot less folks sticking around who are in it now. So either that means a draft or the US would drastically have to lessen their war mongering and "nation building".

How much does the US spend on "private security contractors" compared to the lowly enlisted kid?

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August 5, 2010 2:58 PM   

WTF! We ask these guys to go into harm's way. We ask them to get hurt protecting us and even give up their lives in the name of our freedom. Then we cut their pay and then force them to pay for their health care.

So let me see, guy/gal gets seriously hurt in the name of our country, then we kick them when their down.

Plus on top of that, while we are considering cutting the military's pay and benefits, we're going to do nothing to scale back the outrageous costs of the military contractors. So the GOP is saying that the corporations who are making billions of dollars off of our military are far more important then our military personnel who are going into harms way to protect our country.

Does anyone else see a problem here?

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August 5, 2010 3:28 PM    in reply to brothejr

Let's not get our shorts in a bunch. There is ZERO chance that something like this would ever get implemented. The political repercussions would be too great.

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August 5, 2010 3:32 PM    in reply to mans_best_friend

True, very true.

But it burns my goat that anyone would consider reducing a soldiers pay and make them pay for their health care over reducing corporate military contracts.

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August 5, 2010 4:21 PM    in reply to mans_best_friend

Not so fast. GW Bush's budgets routinely shorted military health care and other benefits and remember the Walter Reed Hospital scandal? And remember the carnivals they held for contractors when we invaded Iraq?

If the GOP takes the Congress (which I don't think is going to happen) look for precisely these kinds of measures to return.

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August 6, 2010 2:11 AM    in reply to brothejr

in all fairness coburn is a member of the gop and he is against this. It seems the main push comes from military contractors.

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August 5, 2010 2:58 PM   

Hard to believe that Coburn is on the right side of an issue.

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August 5, 2010 3:10 PM    in reply to Lycurgus

Look at how many military bases OK has:

http://usmilitary.about.com/library/milinfo/statefacts/blok.htm

They even have the Coast Guard Institute. Oklahoma is landlocked.

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August 5, 2010 3:00 PM   

Excellent reporting, TPM. This is your best story in a long time. I hope it receives the proper attention.

As for the substance... this is not looking good. The CEO of Honeywell (or anyone like him) should never have been on this commission in the first place. But then, there never should have been a commission in the first place. It's time for Obama to stand up and say that Social Security benefits will not be cut no matter what the commission recommends. Indeed, given the number of unemployed people pushing 60 right now, the retirement age should probably be temporarily lowered.

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August 5, 2010 11:30 PM    in reply to destor23

Yeah, a Medicare buy-in would be very helpful right now, but Obama sent his minion to the Senate to kill that, didn't he?

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August 5, 2010 3:03 PM   

"GOP's unwillingness to support any significant tax increases are pushing the group toward proposed entitlement slashes and larger budget cuts."

Great. Cave in to the assholes. That'll teach 'em.

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August 5, 2010 3:07 PM    in reply to FlownOver

Why did they even have to be on the commission? It's not like their positions would be a surprise. The whole lot of them could have been replaced with the NoTaxatron 2000.

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August 5, 2010 3:18 PM    in reply to FlownOver

GOP's unwillingness to support any signifigant tax increases is a dog bites man comment. But it strikes terror in the heart of Harry Reid and Barack Obama. They'd much rather screw the old folks and the soldiers than force the damn Republicans to defend fiscal irresponsibility in order to preserve massive wall street bonuses, 15% tax rates for billionaire hedge fund managers, the Paris Hilton needs a new beach house tax cut, and low marginal tax rates for the filthy rich.

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August 5, 2010 11:32 PM    in reply to cosliberal

Yeah, where's all that "audacity" we were expecting?

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August 5, 2010 3:16 PM   

This is yet another example of Obama's spinelessness. This "commission" is his coward's way out of actually standing up for something or of making tough decisions.

I'm guessing he's about run out of hippies to punch so now he's going for the troops.

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August 5, 2010 3:30 PM    in reply to EastWest

You know, I came to this thread intending to add my voice to the chrous warning Obama against supporting any cuts (even as minimal as funding formulas or the like) to entitlements without serious concessions from the other side.

Then, I read idiocy like the comment above, that assumes cutting troop pay and gutting Social Security are a done deal.

And I have to change my comment to "This is yet another example of Chicken Little progressives pissing their pants at every ripple in the news cycle."

Get a grip, loon. The politics of this have a long way to go.

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August 5, 2010 7:01 PM    in reply to brewmn61

Yeah, cuz Obama has been so progressive. Not like he hasn't caved in almost every major issue, so far.

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August 5, 2010 3:27 PM   

Wow! Everyone is getting all worked up about a report that hasn't been written about negotiations that are ongoing by a commission that has no authority to enact law.

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August 5, 2010 3:33 PM    in reply to Terri

After the Commission reports it'll be too late to debate. The recs will be considered by a lame duck Senate and House. They're trying to keep the public out of this process.

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August 5, 2010 3:34 PM    in reply to Terri

A commission that should not have existed in the first place, and that at the very best may do no harm but certainly won't do any good. In soccer this is called an own goal. Obama's had plenty of those (just sticking to economics, reappointing Bernanke for one.)

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August 5, 2010 3:28 PM   

As soon as Vietnam ended, military promotions were almost frozen for a couple of years so as to discourage people from re-enlisting or capping someone's chances of going up one more grade just before they retired. They also cut back on morale, recreation and welfare funds too which left soldiers to fend for themselves at their own costs.

Since the 90's a retiree doesn't make 50% of base salary at retirement...it's about 35% and doesn't get to 50% until they reach 65. But then it's reduced to offset social security. And the minimum retirement rank was increased from E-5 to E-6. That might change too. Also, they not longer have immediate access to military hospitals as they use to. There's a kind of military HMO for dependents and retirees.

Once the wars end, there's going to be a major realignment. The Navy and USAF will be parred down significantly seeing how there aren't too many naval and air forces out there to fight against. And since peace time implies less need for military hardware, a lot of military career positions will mothballed with no chance of retraining since the reason for the action is to reduce the number of soldiers.

So the military members will get the short end of the stick again. Only this time there's significant economic damage that they're caught in the middle of and it's going to put them between that rock and a hard place.

But the real sticking point for Democrats is many soldiers lean republican because they think republicans look out for them and the demise of military forces and hardware are because of democrats. Seeing how democrats are the majority, and reduction in pay, services, hardware, career options will be on their watch, they will fault the democrats even though republicans are the ones driving he issues.

This is what Obama's attempt at bipartisanship with republicans gets us.

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August 5, 2010 11:43 PM    in reply to Beetlejuice

Exactly how do Republicans look out for the military? Republicans start wars that get them killed, and pay contractors 10 times as much to do the safest jobs so more soldiers can take the risk of getting killed. As I recall, the last few times we've looked after soldiers with better benefits, it's been a Democratic initiative and opposed by Republicans.

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August 5, 2010 3:45 PM   

Not sounding like the Change I had Hoped (and voted) for.

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August 5, 2010 3:53 PM   

Oh no, one unnamed aide reports on conversations the Debt Commission is having. We're betrayed! Doomed I tell you!

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August 5, 2010 4:24 PM    in reply to OhioGuy

I know it seems alarmist to you but the timing of this is very tricky for anybody who is opposed to the direction the commission seems to be taking. They're deliberately working the calender to keep public debate to a minimum.

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August 5, 2010 6:02 PM    in reply to destor23

They certainly are trying to delay releasing recommendations until the elections are out of the way. Any defecit reduction is going to be the result of tax increases and/or spending cuts, which are sure to piss someone off. Nobody wants to do that just before an election.

Today's "information" doesn't pass the smell test. We're going to balance the budget by making soldiers pay for their own health care? First, that would get somewhere around zero votes in Congress. Second, the people on the commission can do the math and realize that military health care isn't even a drop in the bucket. The whole thing is obviously a self-serving leak. Probably by a Republican who wants to promote the meme of "they're all equally bad" by promoting Coburn(!) as the good guy.

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August 5, 2010 7:29 PM    in reply to OhioGuy

Do you believe that Barack Obama would sign legislation that either raises the Social Security retirement age for a whole bunch of people or that cuts the growth of benefit to something below the commonly accepted Cost Of Living Adjustment standard?

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August 5, 2010 9:45 PM    in reply to destor23

absolutely.

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August 5, 2010 11:09 PM    in reply to destor23

Yes, I do, unfortunately. It is sad to think that a "Democrat" would do anything to weaken Social Security, but when it comes to Obama, and I voted for him, I do believe he will sign off on the commission's recommendations. Why else did he agree to the idea of one, if not for that?

What we have to do is to start making noise -- daily -- to make such an idea completely unpalatable. And I swear, I will promise to heaven and hell that if any Democrat, ANY Democrat, goes along with cutting Social Security benefits or raising the eligibility age, I will vote for their opponent, no matter the party. And if Obama goes along with, I'll vote for Caribou Barbie, much as I detest that idea. But I'll never, ever support a Democrat who messes with Social Security. We created it, the American people revere it, and no Democrat should ever do anything but strengthen it and take care of it.

Obama's colors are going to be flying high by the end of this year when we find out if he is a true Democrat or if he betrays our party and our beloved Social Security.

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August 5, 2010 11:50 PM    in reply to destor23

Yup, in a heartbeat. He thinks its macho to do unpopular stuff that will get Democrats thrown out of office. Obama is always sucking up to Republicans and telling Democrats to give them what the want. Of course he really hates progressives, the "left of the left", the "pajama-clad bloggers"; I mean they only helped him get elected, unlike the Republicans who are doing all they can to make Obama and the country fail.

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August 6, 2010 12:40 AM    in reply to destor23

Respectfully, that's not the question here. The information leak suggests that the commission will balance the budget by cutting military health care.

It's one thing to worry about social security, it's another to jump on a rumor, which sounds implausible on the face of it, and pronounce that the sky is falling.

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August 6, 2010 1:26 AM    in reply to OhioGuy

Ohio Guy... I think it's ultimately the only question that matters. It is, in the end, the reason that commission exists. This trial balloon about military salaries and benefits is just that (and as you said) a trial balloon.

It's about cutting benefits instead of expenditures. It's about being able to say "waste, fraud and abuse" isn't enough, it's about spending.

It's a first step.

This whole debate is really about Social Security. Is it still untouchable or what?

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August 5, 2010 3:55 PM   

Cut military pay so we can spend more money on advanced weapons systems that we can turn around and sell to countries that might some day use them against us.

Brilliant!!

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August 5, 2010 4:23 PM   

You guys are so gullible or too damn cynical to think rationally. Election or not, there is no way that military pay and benefits will be cut. Social Security will not be gutted and granny isn't going to end up eating cat food (death panels will get her first). The GOP are deficit frauds and the Dems aren't insane enough to piss off their base (the real base - not you all in blogosphere). Once upon a time "commissions" were laughed at and dismissed. For some reason, this one has some of you pissing your pants.

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August 5, 2010 4:26 PM   

Here's a question for the President: Why the HELL is there a Military Contractor on this commission in the first place!

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August 5, 2010 5:02 PM    in reply to henk

Because corporations are people too, dontchaknow.

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August 5, 2010 7:15 PM   

The problem is no one wants their sacred cow touched when it comes to cuts. The only way to reduce spending fairly is to cut across the board, i.e., if you get a check you get a cut. Military pensions and health care are HUGE amounts of money we service every month. Huge.

I know 2 men who are 40ish years old, drawing full pensions, (20yrs and out) and working for the Postal Service full time making good money there too. They buy their families groceries, cigarettes, etc on the military base so much cheaper than I can buy --- all subsidize by the taxpayer too. I don't think most taxpayer realize HOW much it takes to support former military persons whether they saw combat or not. When is enough enough?

Ouchy for sure but it's the only way this country as divided as it is will ever balance a budget again. And balance we must.

Besides, the conservatives HAVE to give money to big business and cut those taxes to the rich and someone's going to pay for it ---- right?

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August 5, 2010 7:26 PM    in reply to angelfire

20 and out makes a lot of sense in such a dangerous line of work. Even non combat military duty can be life and health threatening. The deal your friend has doesn't seem so great compared to the risks he took, it's just that his risks paid off.

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August 5, 2010 11:58 PM    in reply to angelfire

Your version of the mythical welfare queen.

For some things it is either enough or it isn't. Social Security is one of those things. A proportional cut to Social Security is bullshit; it is not a generous plan to start with; average checks about $1100, which won't rent a no-bedroom apartment where I live.

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August 6, 2010 1:22 AM    in reply to condew

Exactly. $1100 a month? What IS that? It's not living wage anywhere and it's substandard in most places. Social Security is shamefully stingy, not a program that needs cutting but one that frankly should be 3-4 times more generous.

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August 6, 2010 12:16 PM    in reply to destor23

3-4 times more generous? Are you kidding?? Even your beloved New Dealers didn't intend for SS to support seniors; it was intended only as a supplement. And people on average were expected to live only a few years beyond age 65. Do you honestly think working people and their employers would stand for increasing the SS tax three-or-fourfold? And why would you expect them to? You really should familiarize yourself with the concept of self-reliance.

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August 6, 2010 9:54 AM    in reply to angelfire

Those cheap groceries and smokes (and booze, too, if there's a Class VI store on post) help to offset the size of the pension. Unless you retire with some serious weight on your collar (or sleeve, as the case may be) and at least 25 years in, don't expect to be rolling in the retirement dough.

Most military retirees I know went straight from the uniform to a civilian job. You pretty much have to do that in order to make it financially.

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August 5, 2010 8:02 PM   

A better and far reaching act would be to just drop all military pay to about 4 dollars/hr and eliminate all benefits.
... should take about fifteen minutes to drop the volunteers to about a thousand soldiers... with NO reason to keep feeding the bottomless pit...

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August 6, 2010 12:00 AM    in reply to johnnydoughey

Yeah, and then we can replace them with $100K/year contractors.

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August 5, 2010 9:27 PM   

I say any cuts to military pay and/or benefits should be met equally with a cut in pay and benefits to Congressional members! Our government approves spending mostly on non-essential pet projects, which are hidden in bills/line items! Why can't the public be informed of EVERYTHING included in today's legislation? It's not because it cannot be done! It's because they don't want to do it! CUT the BS and leave the military and social security alone! (i.e. the second jet engine Haliburton has had pushed through for "the sake of jobs and the economy", millions upon millions will be spent for something the President, Congress and DOD doesn't even want! Shows you who holds the real power doesn't it!)

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August 5, 2010 11:59 PM   

Over 40 years ago, I signed a blank check, payable to the citizens of the US and payable in my blood. Their end of that agreement was my retirement and medical car. Any one of them could have made the same agreement and, if they honorably fulfilled the terms, reaped the benefits. I paid through low pay, long separations from my family, deprivation and danger.
Screw these fat cats. I'm not going to apologize for my earned benefits. Too bad they can't say the same.

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August 6, 2010 1:20 AM    in reply to bearsense

Nor should you be asked to apologize. You should expect what was promised to you and though I notice you didn't ask for it, what was promised should be delivered with our gratitude.

Thank you. You did a good job for us.

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August 6, 2010 12:13 AM   

The trouble with congress is that they are all millionaires who like to think they are average joes; in fact they cultivate that image of being an average joe as a way to "relate" to voters. So congress thinks "I can provide for my own retirement, why can't everybody else?" and "I can put my kids thru college, why can't everybody else?" or "I can provide for my own health care, why can't everybody else?. But they are not average, congressional pay is about 4 times average.

I wish they would try to "relate" to average voters by trying to live on $40K and provide for their own retirement, kids, and health out of that limited resource. Well, at least they could make policy based on how average Americans balance their budget. For many, retirement savings comes after all the stuff that must be paid for NOW! Housing, food, medical care, transportation, and the like. Those people would die in harness were it not for Social Security and Military pensions.

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August 6, 2010 2:16 AM    in reply to condew

most congressman are not millionares at least not until they leave congress and get a job with lobbyists. Thats why they cave into the corporations so they have a nice job waiting for them when they retire.

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August 6, 2010 2:19 AM   

I personally support just selling couple supper carriers to austrailia. it will give us a nice buffer with china and I think we could get a trillion for them. plus the costs we will save in upkeep and wages for those who work on those super carrier.

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August 6, 2010 2:21 AM   

I mean super carrier not supper carrier although if we have those we could sell them too. and do we really need manned bombers now that we have drones?

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August 6, 2010 5:36 PM   

As of 2008, the last year for which this information is available, only 237 Congresspeople, or a mere 44% were actually Millionaires. 48 Senators were members of the club.

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August 7, 2010 1:51 PM   

Well...even though it may require a pay freeze, we absolutely *must* require troops in Afghanistan... how utterly foolish and ridiculous! If we really must carry out our mission in Afghanistan (an utterly dubious one)well, then we must pay the piper. 100 percent. No excuses.

Emily
http://emilyscoffeespot.blogspot.com

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August 20, 2010 7:02 AM   

I guess I'll have to chime in. This is as the article says cover for Congress, which doesn't want to have to DO THEIR JOB. The Deficit is so easy to fix, but nobody wants to do the right and correct thing. FIX: go back to the tax rates before Reagan, eliminate the wage cap for FICA, cut the defense (AKA War Dept.) spending by at least half (not the actual people who are in the military--higher wages and better benefits and fully fund VA). A complete accounting of all govt. expeditures was promised by Obama, but we haven't seen it yet. We get bits and pieces.

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August 21, 2010 8:40 AM   

It takes my breath when I think about how it has came down. Corporations have us exactly where they want us. Both parties work for them, so our choices when voting guarantees we lose no matter who we vote for. Taxes will not be increased for those who can afford higher taxes, the rich, but Social Security and the veterans will lose benefits.

It is actually very sad.

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