Obama Revenue Figure Well Below Bowles-Simpson

November 16, 2012 at 2:37 pm

President Obama has called for $1.6 trillion in new revenue over ten years as part of a deficit-reduction package.  Senate Minority Leader Mitch McConnell said yesterday that this is more than the Bowles-Simpson commission recommended.  Actually, it’s a lot less.

As our report “What Was Actually in Bowles-Simpson?” explains, Bowles-Simpson called for $2.6 trillion in new revenue over the 2013-2022 period.  A new Center for American Progress report has a similar estimate:  $2.7 trillion.

Bowles-Simpson also called for nearly $2.9 trillion of program cuts, about half of which have already been enacted.  This means that most of the plan’s not-yet-achieved savings are on the revenue side.  Excluding the enacted savings, Bowles-Simpson would achieve an additional $4.6 trillion in deficit reduction over ten years (including $0.6 trillion in lower interest costs), which would consist of $1 in program cuts for every $2 in revenue increases.

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More About Richard Kogan

Richard Kogan

Richard Kogan rejoined the Center in May 2011 after having served as a Senior Adviser at the Office of Management and Budget since January 2009. During his second tour at the Center, from 2001 to 2009, he served as a Senior Fellow specializing in federal budget issues, including aggregate spending, revenues, surpluses and deficits, and debt. Kogan is also an expert in the congressional and executive budget processes and budget accounting concepts.

Full bio | Blog Archive | Research archive at CBPP.org

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