A Simpson-Bowles explainer

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:

  1. $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.
  2. $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.
  3. Maintain the Obamacare Medicare cost controls and consider the public option for health care reform.
  4. Reduce entitlements like farm subsidies, student loan subsidies, and federal pensions (both military and civilian)
  5. 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.

We’ll be discussing the plan at 10:20.