The report is an uncompromising blueprint for deficit reduction. As was last month's original version, it is likely to draw fire from the left for its spending cuts and the right for its revenue increases.
While its scope and the magnitude of its recommendations are very similar to the original Bowles-Simpson plan, there are some differences.
Among them: The amended plan recommends that lawmakers consider a one-year payroll tax holiday either for workers or employers as an economic stimulus measure. That echoes a stronger payroll tax holiday proposal offered last month by another debt reduction task force co-chaired by Alice Rivlin, who also sits on the president's commission.
Overall, spending cuts would account for roughly 74% of the deficit reductions. Tax measures -- including a reduction in tax breaks -- would account for roughly 26%.
And actually instead of that $4 trillion in deficit reduction in the final plan, it's actually about $2.2 trillion in spending cuts and a trillion plus in getting rid of middle class tax breaks like mortgage deductions...but it mysteriously lowers the top tax rate from 35 to 28%.
So, a massive, massive tax cut for the rich. The middle class gets a tax cut to 22% but loses a big chunk of deductions and comes out break-even at best. The poor will pay more because hey, there's a gas tax and the lowest tax rate goes up on them from 10% to 12%.
So yeah, this is really a horrible plan across the board. Already, several members of the commission have come out to say they like it. Should be fun when it comes to actually doing a budget, huh...especially when the Republicans take out the tax increases, keep the tax and spending cuts, and make ordinary Americans suffer. Remember, what we're seeing here is the flat rate deduction tax breaks eliminated, but for the wealthiest Americans those losses will more than be made up by the large percentage in their tax rate savings.
Don't think this vanishes on Friday either. It'll be back.
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