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Oh, that comedian Al Franken. Um, Senator Al Franken, that is. You just can’t take him seriously, some say. But when he make proposals like this, how can you doubt his love of country and just plain reasonableness?
In a recent op-ed, he offers up just three budget cuts that would save $600 billion over 10 years without having to cut things like heating assistance, Pell Grants and infrastructure funding that creates jobs:
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1) CUT: The government pays too much for Medicare prescription drugs. Because Medicare represents so many people, it could negotiate prices directly with drug companies and deliver the same benefits for seniors at a lower cost.
SAVINGS: Up to $240 billion over 10 years.
SACRIFICE: Drug companies would receive lower payments, but seniors would get the same benefits.2) CUT: We all agree that we can’t skimp on national security. But when the military says it doesn’t need or want something, we should listen. For example the military says they don’t need the F-22, the C-17 and the F-35 alternate engine. Let’s not buy them.
SAVINGS: $300 billion for proposed cuts.
SACRIFICE: Military contractors would suffer, but our generals say we can drop these programs without sacrificing security.3) CUT: The oil industry already enjoys enormous profits—but also gets huge subsidies and tax breaks. Let’s stop them.
SAVINGS: About $64 billion over 10 years.
SACRIFICE: Oil company profits would be a little lower.
Wow, that was easy . . . let’s try to cut another $600 billion tomorrow.
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Well, two out of three ain’t bad, especially for someone like Franken.
The oil subsidies, however, are pretty close to necessary. Oil companies make “enormous profits” in raw dollars but do not have an enormous profit margin. Dropping the subsidies would be a massive hit to their solvency would cause them to have to raise fuel prices.