(Image Source: The Atlantic)

 

BY CHRISTINA HARTMAN 


Now that we’re just a few weeks away from a self-imposed so-called “fiscal cliff” deadline — a 2-year-old plan is experiencing something of a political revival.
 

“Look, they have something on the table called Simpson-Bowles. All they have to do is follow it.” (Fox News)
 

“Simpson-Bowles looks pretty promising right now.” (From Business News Network)
 

Simpson-Bowles — the shorthand name for a deficit reduction blueprint — put forward by former Republican Senator Alan Simpson and Democrat Erskine Bowles.
 

Lawmakers are working on a palatable plan to reduce the deficit before a series of severe spending cuts and the expiration of the Bush-era tax cuts kick in. Republicans swiftly rejected President Obama’s plan, after which Democrats responded in kind — slamming Republican House Speaker John Boehner’s offer.
 

As for Simpson-Bowles, their plan would see, in part:
- $2.6 trillion in new revenue, first from the expiration of Bush tax cuts for the wealthy
- $1.6 billion in discretionary spending cuts
- $238 billion in Social Security reform
 

The plan never made it to Congress for approval, because it failed to reach a supermajority of support within the commission tasked with creating it.
 

Among those to vote against it — Romney running mate Paul Ryan — who said it included too many tax increases.
 

For the most part, both sides remain entrenched in the same places they have been since this whole debate began.
 

Republicans want to fix the deficit largely through spending cuts, and absolutely without raising tax rates. Democrats say raising rates on the wealthy HAS to be part of the deal.
 

Simpson himself is known for his brutal honesty. When asked earlier this year about his own party’s previous opposition to the plan, here’s what he told CNN’s Fareed Zakaria:
 

SIMPSON: “You can’t cut spending your way out of this hole, you can’t grow your way out of this hole, you can’t tax your way out of this hole. So put that in your pipe and smoke it — this is madness.”
 

But he hasn’t given up on his crusade — in a newly-released video for the nonpartisan debt reduction campaign “The Can Kicks Back”
 

He goes Gangnam style after telling viewers to sign up to help urge lawmakers to compromise and make hard choices when it comes to the national debt.
 

In reality though, while it’s a go-to option of pundits, it’s highly unlikely Simpson-Bowles will be the final deal — largely because there’s not enough support in Congress for it.

Simpson-Bowles Plan Suddenly Back in Vogue

by Christina Hartman
0
Transcript
Dec 5, 2012

Simpson-Bowles Plan Suddenly Back in Vogue

 

(Image Source: The Atlantic)

 

BY CHRISTINA HARTMAN 


Now that we’re just a few weeks away from a self-imposed so-called “fiscal cliff” deadline — a 2-year-old plan is experiencing something of a political revival.
 

“Look, they have something on the table called Simpson-Bowles. All they have to do is follow it.” (Fox News)
 

“Simpson-Bowles looks pretty promising right now.” (From Business News Network)
 

Simpson-Bowles — the shorthand name for a deficit reduction blueprint — put forward by former Republican Senator Alan Simpson and Democrat Erskine Bowles.
 

Lawmakers are working on a palatable plan to reduce the deficit before a series of severe spending cuts and the expiration of the Bush-era tax cuts kick in. Republicans swiftly rejected President Obama’s plan, after which Democrats responded in kind — slamming Republican House Speaker John Boehner’s offer.
 

As for Simpson-Bowles, their plan would see, in part:
- $2.6 trillion in new revenue, first from the expiration of Bush tax cuts for the wealthy
- $1.6 billion in discretionary spending cuts
- $238 billion in Social Security reform
 

The plan never made it to Congress for approval, because it failed to reach a supermajority of support within the commission tasked with creating it.
 

Among those to vote against it — Romney running mate Paul Ryan — who said it included too many tax increases.
 

For the most part, both sides remain entrenched in the same places they have been since this whole debate began.
 

Republicans want to fix the deficit largely through spending cuts, and absolutely without raising tax rates. Democrats say raising rates on the wealthy HAS to be part of the deal.
 

Simpson himself is known for his brutal honesty. When asked earlier this year about his own party’s previous opposition to the plan, here’s what he told CNN’s Fareed Zakaria:
 

SIMPSON: “You can’t cut spending your way out of this hole, you can’t grow your way out of this hole, you can’t tax your way out of this hole. So put that in your pipe and smoke it — this is madness.”
 

But he hasn’t given up on his crusade — in a newly-released video for the nonpartisan debt reduction campaign “The Can Kicks Back”
 

He goes Gangnam style after telling viewers to sign up to help urge lawmakers to compromise and make hard choices when it comes to the national debt.
 

In reality though, while it’s a go-to option of pundits, it’s highly unlikely Simpson-Bowles will be the final deal — largely because there’s not enough support in Congress for it.

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