Deficit Predictions

From Zanecorpwiki

My predictions for the results of the deficit talks:

• SS contribution cap will be raised. $200K is my guess.
• Social Security retirement age is raised slightly for those currently under 50.
• Business expense rules will be tightened. Some around transportation. (The "corporate jet loophole".)
• Massive cuts to discretionary programs.
• Blunt, back loaded cuts to Medicare and Medicaid.

The big question which I don't know the answer too: will the top-rate tax rate be rescinded? It's not actually the most important fiscally, but it's probably the most important for the Democrats. If they fail on this, they'll be seen as weak and ineffectual. The Republicans will give up a lot to keep the extensions in place for the same reason. Realistically, the country will probably get a bigger deal by letting the Republicans keep the extension (still not permanent, though), but even saying that I hope the Dems don't cave on this.

What we won't do (but should):

• Make significant military cuts.
• Start to move away from the Medicare fees for service model.
• Additional brackets for the ultra-wealthy.