Obama has proposed an idea to aid in America's effort to cut back on spending and to try and tackle this enormous budget deficit.
Obama has suggested a two year pay freeze for all civilian federal employees or civil servants.
I want to be clear to communicate that the pay freeze will not effect the military. So if you are in the armed forces and are expecting a raise, or something of the like, than you can rest assured this fiscal action will not effect you.
Also, because many of my readers are not financial gurus. I want to make clear that a pay freeze does not mean these federal employees will not be paid for the next two years. This simply means that they will not get a raise.
The proposed plan will cut the deficit by almost 30 billion dollars over the next five years.
The average salary for a civil servant that deposits a federal pay check on a regular basis makes around $125,000 dollars. This is about twice the salary of the average American.
I am personally OK with this measure as I don't really think the government needs to be increasing salaries. This move seems obvious. Kinda like eliminating the Bush Tax Cuts.
Republicans seem receptive to this idea from Obama.
I recently posted on the Bush tax cuts and the conflict thriving amidst it's looming expiration. I have something to add...
I was going to put it right here but I think I will go ahead and just create a new post for it.
Find the new post on some of my additional thoughts on the Bush Tax Cuts and Republican Shame.