11 shockingly true facts about Simpson-Bowles

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    Dec 05, 2012 12:06 AM GMT
    For those who are fans of the S-B plan and chide Obama for not endorsing it (which includes me):


    1) Simpson-Bowles ends the the Bush tax cuts for income over $250,000. And note that they do that before they reform the tax code.

    2) There are a lot of tax increases in Simpson-Bowles. $2.6 trillion over 10 years, to be exact. That’s more than President Obama ever proposed.

    3) There are so many tax increases that the plan is nearly 1:1. According to CBPP’s calculations, Simpson-Bowles includes $2.9 trillion in spending cuts and $2.6 trillion in tax increases. That’s 1.1:1. If you add the $800 billion in projected interest savings to the spending side, then it’s 1.4:1.

    4) Simpson-Bowles taxes capital gains and dividends as normal income.

    5) Charities, homes, health care and states. Simpson-Bowles turns the deductions for charitable contribution and mortgage interest into 12 percent, non-refundable tax credits. It caps the tax exclusion for employer-provided health care and then phases it out entirely by 2038. It eliminates the exemption for state and local bonds.

    6) Simpson-Bowles raises the gas tax by 15 cents. Just saying.

    7) Congress has already passed 70 percent of the discretionary cuts.

    icon_cool.gif Simpson-Bowles cuts security spending by $1.4 trillion, not including drawing down the wars.

    9) The Social Security changes. Simpson-Bowles makes three main changes to Social Security. It increases the taxable maximum on income to 90 percent of all income, which raises $238 billion over the next decade. It uses a different measure of inflation to slow cost-of-living adjustments. It raises the retirement age to 68 in 2050 and 69 in 2075.

    10) Paul Ryan voted against Simpson-Bowles.

    11) Simpson-Bowles went down in the House, 382-38.
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    Dec 06, 2012 3:11 PM GMT