A draft of the US deficit commissions’ proposal is coming out on Reuters…
- Spending cuts phased in over a number of years to avoid undercutting economic recovery
- Comprehensive social security reform including raising retirement age to 68 by 2050, 69 by 2075; reduced benefits for middle, upper income retirees
- Reduced base rate for corporate taxes
- Dramatic tax reform including dropping home mortgage interest deduction
- Cut defense spending, close additional US bases
Keep in mind this is just a proposal. It would have to work its way through Congress, where local interests get involved. Closing Army bases has proved particularly contentious in the past as they are huge employers which the local Congressman is very reluctant to part with.
That said, the political environment is ripe for major reform in the size and scope of government.
