Obama must take on budget sacred cows

By William Mckenzie

President Barack Obama says he wants to tackle the deficit next year. That’s great news, because we’re spending $1.4 trillion more this year than we’re taking in.

More than that, the national debt, which is the accumulation of all our deficits over time, stands at $12 trillion. And, when you add in unfunded promises to Medicare and Social Security, the long-term debt is around $56 trillion. That figure breaks down to $184,000 per American.

There obviously is reason to worry. But how do we get out of this jam?

It won’t happen overnight. But here are five reforms the president and his staff should pursue if the administration wants to reel in the deficit:

UFund Afghanistan: Liberal Democrats have an ulterior motive in pressing Obama for a way to pay for the Afghanistan buildup. They want to stop the effort.

I’m not with them on stopping the buildup, but they raise a legitimate point: We need a separate way to finance the war, whether through war bonds, spending cuts or some other changes. President George W. Bush made a mistake in not pushing Congress for a unique revenue stream to finance Iraq. Obama shouldn’t make the same call in Afghanistan.

UPush Congress on health costs: There are reforms to like in the House and Senate health bills, but they really won’t control medical costs over time. The president wants to lower costs because he thinks, rightly, that their curbing would lessen the deficit.

Here’s an idea for him to pursue: Push Capitol Hill to put stronger incentives to lower health costs into the final health bill. For example, make sure doctors will not be exempted from the proposed Medicare Commission’s powers to reshape how Medicare reimburses providers.

UHonestly fund a health bill: GOP Sen. John McCain unfortunately lost on an amendment last week to require the Senate to return its health bill to the Senate Finance Committee. The Arizonan wanted members to find an alternative to the more than $400 billion in Medicare cuts Democrats are relying on to finance the $848 billion Senate bill.

McCain was correct; Congress has rarely made good on previous pledges to trim Medicare. The House, in fact, just voted to forgo $200 billion in pledged Medicare cuts. There’s no way large future reductions are going to materialize, which means this Senate bill will likely explode the deficit.

The president should persuade Senate leaders to rethink funding so much of their bill through unrealistic Medicare reductions. He would have support from a bipartisan group of health experts and organizations like the Concord Coalition, the Progressive Policy Institute, the Brookings Institution and the Committee for a Responsible Federal Budget.

UGo with Cornyn and Feinstein: Sen. John Cornyn, R-Texas, and Sen. Dianne Feinstein, D-Calif., have introduced legislation to create a bipartisan commission to address the costs of Social Security and Medicare. Obama likes the idea of a special commission. Well, here’s a real-live bill, Mr. President; put your weight behind it. You will find wind at your back, too, according to a recent Peterson Foundation poll. Seventy percent of respondents favored a bipartisan fiscal commission over Congress to tackle the deficit and debt.

UNext year’s budget: Obama’s budget-writing team needs to take on a few sacred cows in the fiscal 2011 budget it is now drafting. (For instance, curtail so many subsidies to big farmers.) No one should expect next year’s budget to eliminate the deficit. But it sure can signal the president’s intent.

And we all have a stake in him moving from intent to action. Sooner than later, we have to reckon with those huge deficit and debt numbers.

X William McKenzie is an editorial columnist for The Dallas Morning News. Distributed by McClatchy-Tribune.