Today, President Obama revealed his preliminary plan for debt-reduction which he believes will cut approximately $4 trillion off of the deficit within 12 years. CNN outlines the tenets of his strategy, which combines mainly non-security discretionary spending cuts and tax revisions to reform and restructure how the federal government allocates its resources. Tax wise, President Obama highlighted that he will allow the Bush-era tax cuts to expire yet plans to make this fact negligible by reforming the tax code in a way which will remove virtually all tax breaks in an effort to lower the overall rate. The President also made sure to note that his plan will result in $3 of spending cuts for each $1 increase in tax revenue. Additionally, the plan calls for greater oversight and control of government allocations to health care costs, which continue to skyrocket. Overall, the plan appears to show the seriousness with which President Obama views the current national deficit and his methodology suggests that he will rely highly on his Bowles-Simpson Commission recommendations for inspiration.
Filtering the Stupid out of your Economy
