Deficit Plan #2 Hits the Street

Let our journalists help you make sense of the noise: Subscribe to the Mother Jones Daily newsletter and get a recap of news that matters.

I imagine I’ll still be asleep when Pete Domenici and Alice Rivlin announce their version of a deficit reduction plan on Wednesday morning, but their op-ed in the Washington Post sure makes it sound awfully similar to the Simpson-Bowles plan. That’s no surprise, I guess, since there are only just so many ways to skin this particular cat. Short version: Cut tax rates and eliminate most deductions and credits. No carbon tax, no VAT, no financial transaction tax. Freeze domestic and military discretionary spending for several years at 2011 levels, which amounts to a gradual cut of about $100 million on each side, and then cap future growth. Balance Social Security by raising the earnings cap, cutting benefits for high earners, and changing the COLA calculation. Control healthcare costs by phasing out the tax exclusion for employer-provided health care and reforming medical malpractice laws.

A few things are different. They make a point of phasing in their plan gradually beginning in 2012 so it doesn’t interfere with the current economic recovery. There’s a one-year payroll tax holiday for 2011 to stimulate the economy. They raise some revenue via a 6.5% “debt-reduction sales tax,” whatever that is. They don’t increase the retirement age for Social Security. And they address the health costs tied to rising obesity by imposing a tax on high-calorie sodas. Seriously.

More later, I’m sure. Like it or not, it’s deficit season in Washington D.C. Resistance is futile.

IT'S NOT THAT WE'RE SCREWED WITHOUT TRUMP:

"It's that we're screwed with or without him if we can't show the public that what we do matters for the long term," writes Mother Jones CEO Monika Bauerlein as she kicks off our drive to raise $350,000 in donations from readers by July 17.

This is a big one for us. It's our first time asking for an outpouring of support since screams of FAKE NEWS and so much of what Trump stood for made everything we do so visceral. Like most newsrooms, we face incredibly hard budget realities, and it's unnerving needing to raise big money when traffic is down.

So, as we ask you to consider supporting our team's journalism, we thought we'd slow down and check in about where Mother Jones is and where we're going after the chaotic last several years. This comparatively slow moment is also an urgent one for Mother Jones: You can read more in "Slow News Is Good News," and if you're able to, please support our team's hard-hitting journalism and help us reach our big $350,000 goal with a donation today.

payment methods

IT'S NOT THAT WE'RE SCREWED WITHOUT TRUMP:

"It's that we're screwed with or without him if we can't show the public that what we do matters for the long term," writes Mother Jones CEO Monika Bauerlein as she kicks off our drive to raise $350,000 in donations from readers by July 17.

This is a big one for us. So, as we ask you to consider supporting our team's journalism, we thought we'd slow down and check in about where Mother Jones is and where we're going after the chaotic last several years. This comparatively slow moment is also an urgent one for Mother Jones: You can read more in "Slow News Is Good News," and if you're able to, please support our team's hard-hitting journalism and help us reach our big $350,000 goal with a donation today.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate