Bipartisan Effort to Reduce Deficit and Reform Tax Code

As the country waits for President Obama to outline plans to cut the budget in his State of the Union address, a bipartisan group of senators, led by Democrat Mark Warner and Republican Saxby Chambliss, are working on a plan to save $4 trillion in spending. This plan, based on the Simpson-Bowles commission, aims to cut defense, Medicare, and Social Security spending, while also reforming the tax code.

Key Takeaways:

• The plan, a bipartisan effort between Warner and Chambliss, aims to save $4 trillion in spending over 10 years.
• The plan will cut defense, Medicare, and Social Security spending, while also reforming the tax code.
• The reform will include the closing of tax expenditures, which currently exceed personal income taxes collected each year.
• The plan will also simplify the tax code and lower individual and corporate tax rates.
• The budget plan will also include a growth agenda to boost innovation and job creation.
• Senators Warner and Chambliss are facing pushback from various interest groups, including the National Association of Home Builders and the AARP.
• Despite this, Warner is hopeful that the plan can pass with bipartisan support and be implemented by the beginning of next year.

Statistics:

• $4 trillion in spending savings over 10 years (Source: Senator Mark Warner)
• 50 years ago, there were 8 workers for every 1 retiree on Social Security, now there are only 2 workers for every 1 retiree (Source: Senator Mark Warner)
• 20 or more senators are supporting the bipartisan effort to reduce the deficit and reform the tax code (Source: Senator Mark Warner)
• The plan aims to phase in reforms over a 30-year period (Source: Senator Mark Warner)

Sources:

• Federal News Service, Inc., Ste. 500, 1000 Vermont Avenue NW, Washington, DC 20005 USA