Examining Supercommittee Proposals
We issued two reports today on deficit-reduction proposals in the congressional “supercommittee”:
- GOP Tax Proposal Risks a Substantial Tax Shift From High-Income Households to Low- and Middle-Income Households
- Latest Democratic Offer Includes Further Compromise, Matches Overall Numbers of Toomey Proposal; Republicans Reject It: Key Difference Has Big Impact On Fiscal Responsibility
Here’s the opening:
The Toomey plan from Republican negotiators on the deficit-reduction “supercommittee” would produce only a modest increase in revenues — about $300 billion over ten years, relative to a baseline that assumes Congress extends all of the Bush tax cuts. But it would accomplish this through what appears to be a substantial shift in tax burdens from households at the top of the income scale to low- and middle-income households.
Here’s a snippet:
To try to secure an agreement, Democrats on the Joint Committee offered a plan that moved significantly toward the Republicans and a considerable way beyond the bipartisan Bowles-Simpson and Gang of Six plans, which conservative senators like Tom Coburn and Mike Crapo had embraced. Yet Republicans have summarily rejected the latest, rather conservative Democratic offer. Why?
- Why Doing Nothing Would Reduce Deficits by $7.1 Trillion
- History Lessons from Past Deficit-Reduction Packages
- Non-Defense Discretionary Cuts Could Be Larger With a Budget Deal Than Without One
- Supercommittee Won’t Get Anywhere Near $600 Billion in Medicare Savings Without Harming Lower-Income Beneficiaries