Deficit reduction recommendations formulated by the deficit commission employed by the Obama administration were finalized Wednesday. Deficit lowering policies included in the proposal consist of sweeping tax modifications and budget cuts. If implemented, the deficit commission report would cut deficit spending by $4 trillion by 2020. Politicians of both parties are denouncing the tough realities presented in the deficit lowering plan, which is ironically titled "Moment of Truth". Source of article – Deficit commission submits final report for panel vote on Dec. 3 by Money Blog Newz.
Ultimately getting the deficit commission to the ‘Moment of Truth’
Previous Republican senator Alan Simpson from Wyoming and previous chief of staff for President Clinton Democrat Erskine Bowles co-chair the 19-member panel for the deficit commission. There could be an election on the recommendations that "Moment of Truth" suggested. Friday Dec. three can be when the deficit reduction election takes place. The quick way of getting Congress to implement the deficit lowering policy would be to get enough votes. This will occur if 14 on the panel vote for it. In the deficit commission statement, Bowles and Simpson said “The era of debt denial is over, and there could be no turning back. We sign our names to this strategy because we love our children, our grandchildren and our country too much not to act while we still have the chance."
Deficit commission report particulars
The deficit commission statement has to be accepted politically. That meant the version submitted three weeks ago has been revised. There would be an end to income tax rates. It would also make it so tax credits and expenditures would end. There would be a change from 39.6 percent to 23-29 percent for the highest income tax rate. The Social Security retirement age would rise to 68 in 2050 and 69 in 2075. $190,00 would be the new income cap on payroll taxes. This would be a change. Republicans were happy when a cap on tax revenue was added in. Also, a return to 2008 spending levels and a $50 billion urgent spending cut would happen. For Democrats, upper-income Social Security cuts and a Medicare voucher program for private insurance were scaled back.
Playing with politics when it comes to deficit reduction
Many say that it is not realistic to pass the uncompromising deficit commission statement. It could be hard to stop spending the amount that has gotten the U.S. a $1.3 trillion spending budget deficit and $13.8 trillion national debt. The debt commission is submitting its blueprint for deficit lowering to a Congress continuing to pass legislation that inflates the bottom line. The community does not appear to be on board either. Many say that as long as they continue to get every little thing they’re "entitled" to, then it is fine to reduce the deficit.
Citations
USA Today
usatoday.com/news/washington/2010-12-01-deficit-plan_N.htm
Business Week
businessweek.com/news/2010-12-01/social-security-income-tax-cuts-part-of-debt-plan.html
ABC News
abcnews.go.com/Politics/budget-deficit-commission-release-report-political-tackle/story?id=12279916
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