Federal Daily News

First super committee session largely spares fed workforce

The congressional "super committee" created by the debt ceiling deal had little to say concerning salary freezes, furloughs or other federal workforce measures for cutting government costs -- at least during its first public session. 

Coming after several months of legislation that would have imposed staff reductions and furloughs, along with a salary freeze that did go into effect, federal employees were concerned they would be a prime target for the panel. Instead, the members of Congress appointed to the Joint Select Committee on Deficit Reduction heard testimony by Douglas Elmendorf, director of the Congressional Budget Office (CBO), and talked about unemployment and war funding.

"We all agree that we're facing an unsustainable financial future, and under the CBO's alternative fiscal scenario, the debt is going to reach 82 percent of GDP by 2021," said Sen. John Kerry (D-Mass.) "It's higher than in any year since 1948, and we all agree that we can't let that happen."

Kerry argued that the country made some wrong turns more than a decade ago. "Some would argue [it's been] even longer," he said. "You have economic meltdown, two wars, rounds of the largest tax cuts in history that did not produce the jobs some had predicted and then efforts to forestall larger economic collapse -- all of these contributed."

Rep. Chris Van Hollen (D-Md.) said the fastest and most efficient way to reduce the deficit long term is to lower unemployment and to take a balanced approach that contains savings achieved from modernizing certain programs, as well as savings gained from simplifying. He also urged reforming the tax code to generate more revenue.

"Addressing a problem of this magnitude requires shared responsibility in order to grow our economy and reduce the deficit," Van Hollen added.

Elmendorf pointed to the aging population and increasing costs for health care as factors that will push up federal spending, requiring significant changes in spending policies and tax policies.

But changes must be thought through and cannot be done haphazardly, Elmendorf warned.

"Implementing spending cuts or tax increases abruptly would give families, businesses and state and local government little time to plan and adjust," he said. 

About the Author

Camille Tuutti is a former FCW staff writer who covered federal oversight and the workforce.



 

Reader comments

Mon, Sep 19, 2011

It does not appear to be difficult to see that the rich are the people who invest in the businesses, which invest in new equipment, which increases the production, which increases the number of people needed to produce the goods. More people working, more people spending, and more people spending, the more need to produce the goods and services. Why is it so difficult for people to see that taxing the corporations is not only procucing more taxes, it increases the cost of the goods sold, in other words, the increased tax is passed on to the consumer. Bottom line, cut the tax on the very rich, get more investment, that is what they are being taxed on. Let the companies grow, produce more, hire more people and more monies into the market place. More money in the market place, more people working, more taxes collected.

Thu, Sep 15, 2011

Adhering to the U.S. Constitution would be a good place to start. Our wrong turn started a heck of alot longer than a decade ago, the ramifications of those wrong turns are just becoming more obvious now. A return to a free-market economy(as outlined in our Constitution), a small federal government (as outlined in our Constitution), and elimination of our welfare state (as prohited in our Constitution)would immediately get our country back on track fiscally. I realize these are just outdated principles that people, especially Washington Bureaucrats, don't talk about anymore.

Thu, Sep 15, 2011

When is someone going to take a serious look at the benefits Congress AND their families receive and target their RICH plans?

Thu, Sep 15, 2011

I liked the quote, RB. It is, however, a good idea to find the facts first. Kerry was referring to public debt; the figure you quote is gross debt. Even economists disagree on the importance. Check the researched article at Wikipedia: "Measure of public debt: Economists also debate the definition of public debt. Krugman argued in May 2010 that the debt held by the public is the right measure to use, while Reinhart has testified to the President's Fiscal Reform Commission that gross debt is the appropriate measure. (Gross debt includes government debt held by government institutions, such as the Federal Reserve and the Social Security trust fund.) Certain members of the Commission are focusing on gross debt.[112] The Center on Budget and Policy Priorities (CBPP) cited research by several economists supporting the use of the lower debt held by the public figure as a more accurate measure of the debt burden, disagreeing with these Commission members.[115]." In other words, gross debt includes debt actually held by agencies such as the Federal Reserve itself. Blaming or denigrating democrats ("doesn't have a clue about what he is talking about"), republicans or whoever does nothing for public debate which should be based on reasoned facts and which respects honest differences. The trouble is clear; the rhetoric not helpful.

Thu, Sep 15, 2011

I'm not fond of paying more taxes, but the idea that cutting taxes, especially for the very wealthy, will create more jobs is just stupid. It hasn't worked from the Reagan administration 'till now. So why do the Republicans hold on to that false idea. Do they just want to put more money in their pockets. From the stock market meltdown we see there are plenty of greedy and selfish people in positions that can affect millions of people.

I think they should only get tax breaks is they actually create new jobs in this country. Wake-up your record is stuck and keeps repeating a nonsense noise.

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