Thursday, December 2, 2010

Fiscal Security?

Our friends at Citizens for Tax Justice released the following statement today. We thought we’d share it with you as our nation's leaders continue to try and reduce the deficit with seemingly little thought about the myriad effects that may have on the common good…

CTJ's Statement on the President's Fiscal Commission Plan
The deficit-reduction plan taking shape before the President’s fiscal commission is seriously unbalanced. It relies on cuts in public services for two-thirds of the deficit reduction it strives for, while relying on increased revenues for only one-third. In fact, the plan claims it would somehow “cap” federal revenue at the arbitrary level of 21 percent of the economy. As a result, the plan relies far too much on cuts in public services that will be impossible to make without adversely affecting Americans — including those with very modest incomes.

Part of the problem is the commission’s approach to closing tax loopholes. The plan makes bold proposals to close tax loopholes, but unfortunately uses most of the resulting revenue to lower tax rates! Since the goal of this commission is to reduce the budget deficit, it’s hard to fathom why lowering tax rates would be on its agenda at all.

Read the full statement here. (PDF)

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