Mr. President,
Although I don't agree with everything proposed in your 2012 budget, I think you made a reasonable approach to a budget that balances many different priorities - deficit control, tax increases, spending cuts and continued investments to counteract the recession and grow the economy. Thank you.
As you continue to negotiate the budget with the House, you need to insist that both spending cuts and tax increases move forward in tandem. We clearly need both to fix the deficit. We cannot afford a "compromise" that only moves forward on the painful spending cuts you proposed, or even goes as far as the truly devastating Republicans proposals, that does not also make equally painful decisions on taxes.
The total tax burden in the US (federal, state and local) is about 24% of GDP - a historic low, and significantly lower than the OECD median rate of 36%. Taxes have to go up, even as spending comes down. Corporations have to pay their fair share - lower rates may be appropriate, but with fewer loopholes, deductions and credits. Big Oil does not need a tax subsidy. Personal income taxes have to go up, especially for taxpayers making over $250,000 (nearly 5x the median income - well above "middle class" by almost any definition). Estate taxes should go back up - the deal made in late 2010 just makes the wealth distribution problem worse, not better.
Do not accept any "compromise" that asks the unemployed, the poor and low and middle income taxpayers to sacrifice while leaving taxes for the wealthy unchanged. Shared sacrifice has to be truly shared by all - and the unemployed have already seen their fair share of sacrifice, as have the poor and the middle class.
Defense spending has to come down. We cannot afford to continue at the current spending level in Iraq and Afghanistan. We do not need some 700 bases in 120 countries around the world. We probably do not need the redundant bureaucracy inherent in 5 separate services. We can do better on weapons development and procurement. Specifically, Mr. Boehner, we do not need the Joint Strike Fighter Engine that the DOD and the President both want to cancel.
Senators and Representatives, it's time to put away the pitchforks and get down to business, and reach a real compromise on a serious budget. Democrats will have to accept domestic spending cuts. Republicans will have to accept tax increases. Both sides will have to seriously consider defense spending, Medicare and Medicaid. Any actions on health care cost have to actually address the cost of delivering care, not just shift the burden to states or individuals.
Social security has not ever and does not now contribute to the deficit. The Trust Fund is sound for 25+ years. Any action to "fix" social security will not impact the deficit. No cuts to benefits or increases to the retirement age should be considered at this time.
One final reminder - the deficit is the second most important issue facing the country today. The lingering jobs recession is still the number 1 problem. As you debate the budget, remember we have 16%+ U6 unemployment, and 1 in 6 people are facing serious financial hardship as a result. They cannot be left behind and we need to find a way to help them through the recession and stimulate job growth. Reagan and Bush both tried to stimulate the economy with low taxes and low regulation - that has proven to be a failed policy and you need to come up with something better.
Sincerely,