Deficit Plan #2 Hits the Street

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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.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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