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Thread: Bowles Simpson deficit reduction plan

  1. #1
    Super Moderator UGLY's Avatar
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    Default Bowles Simpson deficit reduction plan

    $100B in Illustrative Defense Cuts
    19
    DISCRETIONARY BUDGET
    2015
    _____________
    Apply the overhead savings Secretary Gates has promised to deficit reduction
    28
    Freeze federal salaries, bonuses, and other compensation at the Department of Defense for three years
    5.3
    Freeze noncombat military pay at 2011 levels for 3 years
    9.2
    Double Secretary Gates’ cuts to defense contracting
    5.4
    Reduce procurement by 15 percent
    20
    Reduce overseas bases by one-third
    8.5
    Modernize Tricare, Defense health
    6
    Replace military personnel performing commercial activities with civilians
    5.4
    Reduce spending on Research, Development, Test & Evaluation by 10 percent
    7
    Reduce spending on base support
    2
    Reduce spending on facilities maintenance
    1.4
    Consolidate the Department of Defense’s retail activities
    0.8
    Integrate children of military personnel into local schools in the United States
    1.1

    $100B in Illustrative Domestic Cuts
    20
    DISCRETIONARY BUDGET
    2015
    _____________
    Reduce Congressional & White House budgets by 15%
    0.8
    Freeze federal salaries, bonuses, and other compensation at non-Defense agencies for three years
    15.1
    Cut the federal workforce by 10% (2-for-3 replacement rate)
    13.2
    Eliminate 250,000 non-defense service and staff augmenteecontractors
    18.4
    Reduce unnecessary printing costs
    0.4
    Create a Cut-and-Invest Committee charged with trimming waste and targeting investment
    11
    Terminate low-priority Corps construction projects
    1
    Slow the growth of foreign aid
    4.6
    Eliminate a number of programs administered by the Rural Utility Service (formerlyREA)
    0.5
    Eliminate all earmarks
    16
    Eliminate funding for commercial spaceflight
    1.2
    Sell excess federal property
    1
    26 otheroptions of $2 billion or less

    Tax options

    Bottom Rate
    Middle Rate
    Top Rate
    Corp. Rate
    Current Rates for 2010
    10%
    15%
    25%
    28%
    33%
    35%
    35%
    Scheduled Rates for 2011
    15%
    28%
    31%
    36%
    39.6%
    35%
    Eliminate all Tax Expenditures*
    8%
    14%
    23%
    26%
    Keep Child Tax Credit + EITC*
    9%
    15%
    24%
    26%
    Keep Child Tax Credit + EITC; Reform Mortgage, Health, and Retirement Benefits at 80% of Current Level and Switch to Territorial System*
    12%
    20%
    27%
    27%
    Keep Child Tax Credit, EITC, and Current Mortgage, Health and Retirement Benefits and Switch to Territorial System*
    13%
    21%
    28%
    28%
    *Note: All options set aside $80 billion for deficit reduction and treat capital gains and dividends as ordinary income
    Rates based on very rough static estimates. No behavioral effects are assumed. Magnitude of tax expenditures estimated broadly.
    COMPREHENSIVE TAX REFORM
    DRAFT

    http://msnbcmedia.msn.com/i/MSNBC/Se...hair_Draft.pdf

  2. #2
    Super Moderator UGLY's Avatar
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    Default Re: Bowles Simpson deficit reduction plan

    These are a few of the proposals in the plan. I like a lot of it and I think that there is something for everyone to be happy with. There is defense spending along with entitlement cuts. The tax rates are lowered but deuctions are eliminated.

    What do you all think. Remember this is not the entire plan floow the link to see entire plan.

  3. #3
    Super Moderator UGLY's Avatar
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    Default Re: Bowles Simpson deficit reduction plan

    As much as everyone cries about what needs to be done about reducing the deficit I thought for sure someone would post in this thread. I guess everyone is on board with the plan.

  4. #4

    Default Re: Bowles Simpson deficit reduction plan

    It looks good at first glance. I'd like to start with a 20% reduction in every government program, and then work on specifics from there.

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    World Champ ODH's Avatar
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    Default Re: Bowles Simpson deficit reduction plan

    I think it is a very good blueprint. Balanced between spending reduciton and revenue increases and asking for sacrifices from erveryone.
    I don't understand all of the different taz proposals, but I think eliminating the EITC (earned income tax credit) is a bad idea. I don't know all the details of the EITC, but I have heard it has been a very successful poverty elimination program.

    I also think there is zero chance of these reforms happening until after the 2012 elections and a very small chancce after that.

  6. #6
    World Champ ODH's Avatar
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    Default Re: Bowles Simpson deficit reduction plan

    Quote Originally Posted by Flop The Nuts View Post
    It looks good at first glance. I'd like to start with a 20% reduction in every government program, and then work on specifics from there.
    One thing I like about this plan that it did not start with sweeping generalization like "20% cut across the board". Some programs need more funding while others 20% reduction is not enough.

  7. #7
    Super Moderator UGLY's Avatar
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    Default Re: Bowles Simpson deficit reduction plan

    Quote Originally Posted by ODH View Post
    I think it is a very good blueprint. Balanced between spending reduciton and revenue increases and asking for sacrifices from erveryone.
    I don't understand all of the different taz proposals, but I think eliminating the EITC (earned income tax credit) is a bad idea. I don't know all the details of the EITC, but I have heard it has been a very successful poverty elimination program.

    I also think there is zero chance of these reforms happening until after the 2012 elections and a very small chancce after that.
    If th EITC was eliminated then all the tax rates would be even lower, there would be zero deductions. With the EITC the rates would be slightly higher with you having that deduction..

    I didnt post any of the health care reforms but I will. take a look at the link and let me know what you think about them. and other entitlement cuts.

  8. #8
    World Champ ODH's Avatar
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    Default Re: Bowles Simpson deficit reduction plan

    My understanding is that the EITC is for the working poor who make so little that they pay zero to negative taxes (get money back). Of course eliminating this would lower overall tax rates, but does nothing to help the working poor because they essentially pay zero Federal income taxes anyways.

  9. #9
    World Champ ODH's Avatar
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    Default Re: Bowles Simpson deficit reduction plan

    Quote Originally Posted by UGLY View Post
    ...I didnt post any of the health care reforms but I will. take a look at the link and let me know what you think about them. and other entitlement cuts.
    I did look through the link and really did not understand the consequences of the Health Care proposals.
    I have also heard that if we fix healthcare costs we essentially fix the budget problem, if we ignore them we are doomed.

    I also did not see anyhting about "Obamacare" in the proposals.
    Did I miss it? Or is it truly deficit neutral as Obama promised?

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