The Bowles-Simpson Commission’s recommendations show that broadening the tax base by eliminating tax expenditures would permit lower tax rates and higher revenue
Dec 01, 2010
SOURCE: National Commission on Fiscal Responsibility and Reform, December 2010.
a/ Dedicates $80 billion to deficit reduction in 2015, growing to $180 in 2020, and taxes capital gains as ordinary income.
b/ The Commission's illustrative plan permanently repeals the alternative minimum tax, eliminates itemized deductions, provides a nonrefundable tax credit of 12% to all taxpayers and caps the interest deduction to mortgages no larger than $500,000 for primary, owneroccupied residences, caps exclusion of for employer‐sponsored health insurance at 75th percentile of premiums, frozen in nominal dollar terms through 2018, and limits deductions for charitable contributions and interest from state and local bonds.
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Peter G. Peterson Foundation Chart Pack:
The PGPF chart pack illustrates that budget-making involves many competing priorities, limited resources, and complex issues. In this set of charts, we aim to frame the financial condition and fiscal outlook of the U.S. government within a broad economic, political, and demographic context. Download (.PDF)