Fiscal Commission Co-Chair recommendations

[Arrian]

http://www.fiscalcommission.gov/sites/fiscalcommission.gov/files/documents/CoChair_Draft.pdf

Seems to me there's lots for everyone to hate in there. I like the basics of the tax reform (simplify, cut rates in exchange for reducing deductions). I like that they advocate cuts to both guns and butter. On the other hand, I find their "plan" for reducing long-term healthcare costs to be, well, awfully vague. And that's the #1 problem.

Hopefully, this results in some sort of productive debate and compromise. Yeah, right, who am I kidding?

-Arrian

[DriXnaK]

I actually like the debt commission findings for the most part. I think they were too light on the entitlements, but I am in love with the tax cuts. The corporate tax cut is going to make us very very competitive. You'll need everything controlled by Republicans to get it through though, and even then it probably won't get through since not every Republican is actually a fiscal conservative. They probably won't fix the deficit until it comes to a breaking point, and by then it will be too late.

[KrazyHorse]

http://www.fiscalcommission.gov/site...hair_Draft.pdf

Seems to me there's lots for everyone to hate in there. I like the basics of the tax reform (simplify, cut rates in exchange for reducing deductions). I like that they advocate cuts to both guns and butter. On the other hand, I find their "plan" for reducing long-term healthcare costs to be, well, awfully vague. And that's the #1 problem.

Hopefully, this results in some sort of productive debate and compromise. Yeah, right, who am I kidding?

-Arrian

In favor of everything in there, basically.

[DanS]

Ditto, although I though think that they should raise the retirement age much more than two years.

[Arrian]

Ok, so I'm in, KH is in, Dan is in... hell, even Drix seems to be in.

Ergo, it's DOA, right?

-Arrian

[Ogie Oglethorpe]

Yep.

[KrazyHorse]

Yeah. I bet the Dems will scream loudest, btw

[KrazyHorse]

We already have hacks like Krugman and pelosi yelling bloody murder

[KrazyHorse]

Argh. Didn't notice that they want to increase capital gains taxation

Dumbest tax ever.

[Arrian]

I've seen some howling from the Right as well. But perhaps the Left will howl more. More of their sacred cows are being sacrificed here.

Explain to me why it's horrible to tax capital gains. Or explain to me why capital gains isn't simply taxed as income.

-Arrian

[Arrian]

Some right-wing screaming:

http://www.atr.org/obama-debt-commission-calls-forbr-trillion-a5647

I don't really care who screams the most. I do care that something that at least resembles this gets done.

-Arrian

[KrazyHorse]

Because it creates a distortion at the investment/consumption frontier and does not improve intelligent measures of equality.

If Adam and Bob are both 26 year old MDs who will each earn the same amount every year of their lives, but Adam spends all of his income while Bob saves 20% of his income to fund a better retirement then Bob will pay much more to the government in taxes.

Retirement accounts remove the distortion for small amounts of saving for a specific purpose, which is an odd compromise

[DriXnaK]

I think this thread should be changed to "What would it take to get the Fiscal Commission recommendations passed?"

Also, I agree that capital gains taxes suck. I didn't know it was in there, but I think all the other good stuff outweighs the bad at this point. I also think they should take cuts in entitlements further.

[Arrian]

So basically you think taxing capital gains at a rate lower than taxation of income is good because it encourages an outcome you think is good (and I agree that outcome is good, being a saver myself). Isn't that just one more example of social engineering via the tax code?

Also, Bob's retirement will presumably involve spending (at least some of) what he's saved up. Adam will be forced into at least some frugality in his twilight years.

Adam's spending pumps money into the economy, so that the businesses in which Bob invests can make money, no?

-Arrian

[Arrian]

I think this thread should be changed to "What would it take to get the Fiscal Commission recommendations passed?"

Similar conditions existed in the mid-80s and mid-90s when reform efforts succeeded. Those were more modest, I suppose, but the pattern is there.

Gah. I have to avoid getting my hopes up.

-Arrian