WASHINGTON — The president's deficit-commission report, scheduled for a vote by the full panel on Friday, proposes to slash tax rates for corporations and for high earners.
The top tax rate is currently 35 percent and is scheduled to rise to 39.6 percent in 2011. The commission would cut that rate to between 23 and 28 percent, while shaving between seven and nine points off the corporate rate.
The commission does propose taxing capital gains and dividends as ordinary income, a move that would result in a higher liability for the wealthy. It also eliminates some corporate tax breaks. But those losses for top earners would be more than offset by their tax cuts.
The commission also addresses Social Security, though the program does not contribute to the deficit and, in fact, is running a multi-trillion dollar surplus. The commissioners would raise the full retirement age to 69 gradually and the early retirement age to 64.
Social Security would be tilted toward a welfare program rather than a social insurance system if the commission's recommendation to provide poorer seniors with a "special minimum benefit" is enacted into the law.
The commission also proposes medical malpractice reform, a long-term goal of the GOP.
The commission had been scheduled to vote on the proposal as required by law on Wednesday, but the vote has been pushed to Friday, suggesting that the commissioners lack the 14 of 18 votes needed to approve it. Some conservatives intend to oppose the bill, including Rep. Paul Ryan (R-Wisc.), who is widely respected on fiscal issues by his House colleagues.
Sources close to members of the commission say that the proposal is virtually certain to be voted down and that President Obama has not been engaged with the process or deliberations.
Sen. Kent Conrad (D-N.D.), chairman of the Senate Budget Committee, said Wednesday that he doesn't agree with everything in the report but will vote to support it. "I don't like everything in this package, but I like even less where our country is headed without it. It would be much easier to say no and to oppose this plan. I certainly would have done some things differently if I were writing it myself. But you can't have everything you want," he said.
House Budget Committee Chairman John Spratt (D-S.C.), who lost election in November, indicated in his comments to the commission that he'd also support it, but didn't come flat-out and say he would vote yes. "I think we should keep this process moving forward," he said, suggesting that if it failed the issue wouldn't be dealt with for years to come.
rest at http://www.huffingtonpost.com/2010/12/01/deficit-commission-tax-cuts-for-rich-higher-retirement-age-_n_790308.html?fbwall
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