Farm Subsidies One Target in Plan
Deficit commision offers plan to cut deficit by $3.8 trillion.
Compiled by staff
Published: Nov 12, 2010
The chairmen of President Obama's bipartisan deficit commission have offered an aggressive plan to rebalance the federal budget by slicing more than $3.8 trillion from deficits over the next decade. The blueprint, drafted by former Clinton White House chief of staff Erskine Bowles and former Senator Alan Simpson lays out a five-step plan that, if adopted, would exceed Obama's targets. Part of the plan would cut farm subsidies by $3 billion a year.
Also, special rates for capital gains and dividends would be gone, and the inheritance tax would reappear at a rate of 45% for estates worth more than $3.5 million for individuals and $7 million for couples. The tax code would be revised lowering rates for most taxpayers and eliminate the unpopular alternative minimum tax. The six current tax brackets would be replaced by three brackets with rates of 8%, 14% and 23%. The corporate tax rate, currently at 35%, would be reduced to 26%.
"Before anybody starts shooting down proposals, I think we need to listen; we need to gather up all the facts, said President Obama, speaking in Seoul, South Korea. "If people are, in fact, concerned about spending, debt, deficits and the future of our country, then they're going to need to be armed with the information about the kinds of choices that are going to be involved, and we can't just engage in political rhetoric."
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