Two years after it was released, the Simpson-Bowles plan to solve the debt crisis is hotter than ever. So what is it?
Here’s how Business Insider sums it up:
- $200 billion reduction per year in discretionary spending. The highlights of the cuts include a 15% reduction in defense procurement, closing one third of overseas bases, cutting the federal workforce by 10% and eliminating earmarks.
- $100 billion in increased tax revenues. Proposed avenues of this tax include a 15 cent per gallon gasoline tax and the cancelation of tax deductions like the home mortgage interest deduction.
- Maintain the Obamacare Medicare cost controls and consider the public option for health care reform.
- Reduce entitlements like farm subsidies, student loan subsidies, and federal pensions (both military and civilian)
- Raise the retirement age for Social Security and raise the payroll tax.
Are you willing, as a taxpayer, to accept higher income taxes and billions in spending cuts for programs you might support? Tell us how you would fix the debt.