Deficit Chiefs Unveil Plan, With New Tax Holiday

Plan would raise retirement age, cut tax exemptions
By Kevin Spak,  Newser Staff
Posted Dec 1, 2010 9:46 AM CST
Deficit Chiefs Unveil Plan, With New Tax Holiday
President Barack Obama's Debt Commission co-chairmen, Erskine Bowles right, and former Wyoming Sen. Alan Simpson, take part in a news conference on Capitol Hill, Tuesday, Nov. 30, 2010.   (AP Photo/Alex Brandon)

Alan Simpson and Erskine Bowles formally unveiled their 59-page plan to cut the deficit yesterday, and it’s much the same as the draft proposal floated a few weeks back. The pair, who co-chair President Obama’s deficit reduction commission, want to raise the Social Security retirement age, cut Medicare, Medicaid and defense spending, eliminate a huge swath of common tax breaks, and cut 200,000 government jobs—all while limiting government revenues.

“Deep down, every American knows we face a moment of truth,” the pair write. “We cannot play games or put off hard choices any longer.” The new draft has a few new features, including a proposed payroll tax holiday in 2011 intended to boost employment. The full 18-member deficit commission will vote on the plan Friday. They’re expected to reject it, but it will likely still shape the impending deficit debate, the Wall Street Journal predicts. (More Erskine Bowles stories.)

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