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Another bipartisan voice for new revenues in federal deficit reduction package

Posted By Allan Freyer On September 26, 2012 @ 4:30 pm In NC Budget and Tax Center | Comments Disabled

In their appearance [1] 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 [2] reiterating the importance of finding a balanced approach to long-term federal deficit reduction that includes new revenues [3] and targeted spending cuts.

While the Simpson-Bowles plan isn’t perfect [4], 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 [5]—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 [6] by reducing their tax cut and will generate more than $1 trillion in new revenues by 2023 [7]—an important down-payment on reducing the Federal budget deficit.

Article printed from The Progressive Pulse: http://pulse.ncpolicywatch.org

URL to article: http://pulse.ncpolicywatch.org/2012/09/26/another-bipartisan-voice-for-new-revenues-in-federal-deficit-reduction-package/

URLs in this post:

[1] appearance: http://www.charlotteobserver.com/2012/09/25/3556781/bowles-simpson-push-us-to-tackle.html

[2] the growing bipartisan chorus: http://blogs.wsj.com/washwire/2012/09/24/six-senators-sound-bipartisan-alarm-over-sequester/

[3] includes new revenues: http://www2.journalnow.com/news/2012/sep/26/wsmain01-erskine-bowles-and-alan-simpson-urge-comp-ar-2639159/

[4] Simpson-Bowles plan isn’t perfect: http://www.cbpp.org/cms/index.cfm?fa=view&id=3336

[5] sequestration: http://pulse.ncpolicywatch.org/2012/09/14/experts-policy-makers-agree-federal-spending-cuts-bad-for-north-carolinas-economy/

[6] just 1.4% of North Carolina’s families: http://pulse.ncpolicywatch.org/2012/08/31/the-truth-about-taxes-and-small-businesses/

[7] generate more than $1 trillion in new revenues by 2023: http://pulse.ncpolicywatch.org/2012/08/01/us-house-considers-whether-to-end-bush-tax-breaks-for-top-2/

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