Another Vote for Simpson-Bowles

by Laura Ehrenberg-Chesler on June 21, 2012

in Debt,deficit spending,Fiscal Policy,taxes

Back in February I suggested that everyone read the Simpson-Bowles report; at least everyone who cares about the direction of our economy and our country.  As a reminder, in 2010 the National Commission on Fiscal Responsibility and Reform was established.  It was a bipartisan committee led by Senators Erskine Bowles and Alan Simpson.

Out of this commission came a proposal/document known as the Simpson-Bowles report.  It is a 67 page document which is in plain English and which proposes in a very common sense, understandable way, a path to reducing the budget deficit by $4 trillion over the next 10 years.

On Tuesday, Ed Yardeni endorsed this plan again.

The Fed can’t do much about the “credit divide.” Fed Chairman Ben Bernanke has already warned that monetary policy can’t offset the coming “fiscal cliff.” So what is to be done? Simpson-Bowles! This deficit reduction plan provides a supply-side solution to our economic woes by slashing margin tax rates and corporate tax rates. It does so by eliminating $1 trillion of tax loopholes, which greatly simplifies the tax code. It should generate enough revenues to meaningfully reduce the federal deficit. It could happen after November 6.

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