In time to influence lame duck session debate on extending the Bush tax cuts, outlines of the proposals of the bipartisan deficit reduction panel are being floated. They are unimpressive, and unlikely to win support.Proposed discretionary spending cuts are only $200 billion, and half of that would come from Defense, which has already been shrinking as a portion of federal spending. Moreover, the wear and tear on equipment through wars in Iraq and Afghanistan has been considerable, in a time of shrinking acquisition of new weaponry. In short, the United States' defense posture is dangerously weak, at a time when China is radically increasing its military expenditures. Agriculture subsidies would be decreased - a good thing - but only by $3 billion a year. However, few presidential candidates facing the Iowa primaries are likely to call for ethanol subsidies to be cut. Even worse, entitlements appear to be treated gently:On Social Security, it would gradually increase the retirement age...(Read Full Post)