NC Budget and Tax Center

Another bipartisan voice for new revenues in federal deficit reduction package

In their appearance at Wake Forest last night, Erskine Bowles and former Senator Alan Simpson presented their long-standing plan for federal deficit reduction and joined their voices to the growing bipartisan chorus reiterating the importance of finding a balanced approach to long-term federal deficit reduction that includes new revenues and targeted spending cuts.

While the Simpson-Bowles plan isn’t perfect, it represents a reasonable starting point for “putting everything on the table” when it comes to federal deficit reduction, and especially the importance of including new revenues.  It opens the door to a fiscally responsible alternative to the spending-cuts only approach to budgeting embodied in sequestration—the looming $1.2 trillion in across-the-board spending cuts to federal programs like Head Start, education, R&D, and our nation’s military projected to cost North Carolina thousands of jobs.

Congress should build upon the Simpson-Bowles plan by replacing these sequestration cuts with new revenues created by allowing the Bush tax cuts on incomes over $250,000 per year to expire in January. This approach will negatively affect just 1.4% of North Carolina’s families by reducing their tax cut and will generate more than $1 trillion in new revenues by 2023—an important down-payment on reducing the Federal budget deficit.

3 Comments


  1. Frank Burns

    September 27, 2012 at 5:51 am

    Agreed Simpson Bowles is a good first start at addressing our deficit problems. I don’t believe that the Democrats in Congress have the courage and fortitude to make the necessary spending cuts. Obama commissioned Simpson Bowles but did nothing with their recommendations, we still don’t have a budget from the Democrats in the Senate. Our own senator Hagan falls right with the cowardice of not attacking the problem.

  2. sundance

    September 27, 2012 at 10:26 am

    I don’t recall electing Mr. Bowles to represent the citizens of the U.S. The commission’s recommendations did not pass the “bipartisan” committee. Paul Ryan voted against the Simpson Bowles plan.
    There is a budget proposal, “The people’s budget,” that gets the job done. Simpson Bowles is another give-away to corporations.
    Simpson Bowles is the wrong-way highway.
    “It is worth noting that Erskine Bowles sits on the board of directors at the huge Wall Street investment bank Morgan Stanley, where he is paid several hundred thousand dollars a year. Interestingly, Bowles also sits on many other corporate boards, also being paid millions for his services over the last decade.”
    http://www.guardian.co.uk/commentisfree/2012/sep/10/erskine-bowles-wall-street-influence-washington

  3. david esmay

    September 27, 2012 at 10:44 am

    Funny how the “hard truths” about Alan Simpson is he has wanted to gut Medicare, SS and other government programs. In fact Simpson stated,” I’ve made some pretty smart cracks about people on SS who milk it to the last degree, you know ’em too… We’ve reached a point now where it’s like a milk cow with 310 million teets.” This coming from a man who has spent his entire life sucking long and hard on the government teet. By the way Frank, Lyin’ Paul Ryan, who went to college on SS money made damn sure Simpson-Bowles died in the House. The cowards are on the right. Boehner, Cantor, McConnell, Ryan, and post menopausal southern belle Lindsey Graham.

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