Thread: Democrats want war savings to fund new stimulus package

Democrats want war savings to fund new stimulus package
By Erik Wasson and Julian Pecquet - 11/10/11 10:43 AM ET

Democrats on the supercommittee have proposed that the savings from the end of the wars in Iraq and Afghanistan be used to pay for a new stimulus package, according to a summary of the $2.3 trillion plan obtained by The Hill.

The latest offer from Democrats on the deficit panel, made Monday night to their Republican counterparts, would use some of the war savings to help pay for spending on infrastructure.

The budget savings from ending the wars are estimated to total around $1 trillion over a decade, according to an estimate in July from the Congressional Budget Office.

The plan includes $200 billion in defense cuts and slashes $200 billion from other discretionary spending. It raises $650 billion in new federal revenue by setting in motion an overhaul of the tax code, and generates $1 trillion in total revenue.

Rep. Jeb Hensarling (R-Texas), co-chairman of the deficit-reduction panel, told reporters that Democrats and Republicans still have significant differences to bridge. He said Democrats have not put forward a plan that deals with Medicare, Medicaid and other healthcare-related drivers of the deficit.

“Unless we fundamentally address that, we will fail in our statutory duty,â€

The new plan from Democrats cuts a total of $1 trillion from federal spending, $100 billion of which would come from Medicare benefits. Another $250 billion in cuts would be made to payments to Medicare providers.

This on top of the 1/2 trillion taken from Medicare under the healthcare act to provide benefits to the middle class and to illegals.

Add to that, the proposed jobs act would take further aim at Medicare and Medicaid.

With all these cuts, seniors will be hard-pressed to find a doctor willing to see them.