Frank, Sholley and Allen offer different plans to reduce deficit

By Jeremy P. Jacobs, PolitickerMA.com Reporter

WELLESLEY - Congressman Barney Frank and his opponents laid out very different plans for how to reduce the nation's growing budget deficit at a debate here Sunday.

Frank, a Newton Democrat, suggested five principles for reigning in spending. First, he said he "would begin by pulling out of that miserable, mistaken war in Iraq." The war, he said, has cost the country $600 billion. Frank also said he would reduce military spending.

"We are by far the strongest military power in the world and I think we should be," the Democrat said. "But it can get overdone...We now spend far too much on the military. We are continuing to build weapons aimed at defeating the Soviet Union."

Frank, the chairman of the House Financial Services Committee, also said he would cut agricultural subsidies to wealthy farmers. Reducing the amount of money spent on sending humans into space would be another priority, Frank said. "Space exploration is very important and has great scientific and practical results, but sending human beings to Mars and back will cost hundreds of billions of dollars for very little scientific worth."

And finally, Frank said he supports increasing taxes on those earning over $200,000, and making hedge fund income qualified for income taxes, instead of the capital gains tax break.

"Finally I would put the tax rates for the wealthiest people back to where they were under Bill Clinton," he said.

Susan Allen, Frank's Independent challenger from Brookline, said the Federal Reserve is the root of current financial problems. "I would liquidate the Fed," she said. "The federal reserve board is defrauding the people of this commonwealth and the people of this nation."

Over the course of her campaign, Allen has repeatedly called for returning the country to a gold or silver standard. She has also argued that liquidating the Fed would increase the value of U.S. money because it would be backed by something tangible.

Allen received applause for her response, adding: "Give us back our hard currency, let us get back on our feet Mr. Frank." Allen also said that she would freeze foreclosures. "In addition, I would let it be known that not one person that was being approached by a bank for a foreclosure need give up their home," she said.

Earl Sholley, the Republican in the race, offered almost exactly opposite priorities than those Frank enumerated. Sholley said he is fiscally conservative and that it is important the country reduce spending in order to reduce the debt left to future generations.

Sholley said he would not increase taxes, and that he would, "look to a flat tax or a fair tax."

The Republican also said he would increase military spending, not cut it as Frank would, and said it is critically important to develop energy independence. On agricultural subsidies, Sholley said he supports extending them to small farmers, not larger companies. And he also said that he supports giving tax breaks on capital gains because "because 50 percent of the people in this country have stock, they have money invested in stock."

Jeremy P. Jacobs is a PolitickerMA.com Reporter and can be reached via email at noreply@politicker.com.

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