The National Commission on Fiscal Responsibility and Reform (often called Simpson-Bowles or Bowles-Simpson from the names of Alan Simpson's co-chair and Erskine Bowles, or NCFRR ) is the Presidential Commission created in 2010 by President Barack Obama to identify "policies to improve the fiscal situation in the medium term and to achieve long-term fiscal sustainability". The Commission first met on 27 April 2010. A report was released on 1 December 2010, and although the Commission is supported by more than 60% of members (11 of 18), and a number of Democrats and Republicans are equal, the Report does not reach the 14- the votes required to formally endorse the blueprint and submit it to Congress for approval. [4]
Supporters of his plan praised him for hitting all parts of the federal budget and placing national debt on a stable and then downward path. Prominent supporters include JPMorgan Chase CEO Jamie Dimon, Democratic Leader Nancy Pelosi (although initially opposed to the proposal), then Secretary of State Hillary Clinton, and Republican Senator Tom Coburn; Democratic representative Chris Van Hollen called for a deal based on the Simpson-Bowles framework. Critics say that it will cut security and guarantee programs, including Social Security and Medicare. Prominent opponents include Paul Krugman, House Speaker Paul Ryan, American President for Tax Reform Grover Norquist and Democratic Representative Jan Schakowsky.
Video National Commission on Fiscal Responsibility and Reform
Histori
The original proposal for the commission came from bipartisan legislation that would require Congress to vote on its recommendations as presented, without any amendment. In January 2010, the bill failed in the Senate by a vote of 53-46, when six Republicans who had sponsored it remained opposed to it. President Former Republican Senator Alan Simpson (R-Wyo.), After his appointment to lead the Commission together, criticized former supporters for rejecting the bill, saying that their goal "is to attach it to the president." the absence of a special law, the Commission's proposal is not guaranteed to be considered by Congress in one vote up or down, although later House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid promised to bring his recommendations. for up or down voting.
Maps National Commission on Fiscal Responsibility and Reform
Commission Member
The Commission includes 18 members and one executive director appointed by the president. These include six members of the US House of Representatives, and six members of the US Senate.
The first vote on the final recommendation, originally set for December 1, 2010, was postponed until December 3 when the commission failed to meet the 14th majority of the 18 votes required to approve the report. Eleven votes for it are five Democrats (Bowles, Conrad, Durbin, Rivlin, Spratt) and five Republicans (Coburn, Cote, Crapo, Gregg, Simpson) and one Independent (Fudge); seven votes against it are four Democrats (Baucus, Becerra, Schakowsky, Stern) and three Republicans (Camp, Hensarling, Ryan).
Public reach
During the Commission's time, co-chairs spend time holding public hearings and appearing in various media.
There are six public meetings of Commission testimony and deliberations, with many private meetings.
- April 27, 2010 - Ben Bernanke, Federal Reserve; Director Peter Orszag, Office of Management and Budget; Rudolph Penner, The Urban Institute; Robert Reischauer, frm. Congressional Budget Office.
- May 26, 2010 - Carmen Reinhart, Professor, University of Maryland; Carlo Cottarelli, International Monetary Fund
- June 30, 2010 - Doug Elmendorf, Director, Congressional Budget Office; a public forum featuring nearly 90 groups and individuals.
- July 28, 2010 - Maya MacGuineas, Committee for Responsible Federal Budget; Barry Anderson, fmr. Organization for Cooperation and Economic Development
- September 29, 2010 - Paul Posner, George Mason University; Janet S. Laurent, Government Accountability Office; Patricia Dalton, Government Accountability Office
- December 1, 2010 - The Commission releases its final report.
In April 2010, Al Simpson was interviewed by Neil Cavuto on Fox News, which included a tax-vs-spending balance in the work of the Commission.
Simpson and Bowles were also interviewed by Chris Wallace on the eve of the first Commission meeting. Simpson's last appearance, mainly because he grants the rights, draws comments from Columbia Journalism Review and James Ridgeway, among others.
draft proposal Chairman
On November 10, the Simpson and Bowles co-chairs released draft proposals for consideration by other commission members who provided the basis for the final report to be released later. Co-seal proposals reduce the deficit to $ 4 trillion, Social Security reforms and tax codes and include health-care savings and a $ 200 billion illustrative savings from discretionary cuts.
After the chairman's briefing to the commission members, two Democrats, Durbin and Schakowsky Representatives, publicly criticized the plan. Senator Kent Conrad (D-ND), however, refused to criticize the proposal, saying "[i] niskala is shooting this proposed alternative but that does the job as well as it does to restore us to the voice of the fiscal course." Senator Judd Gregg, senior Republican on the Senate Budget Committee, noting that the report was a "starting point" indicating the size of the problem.
The proposal was rejected as "not serious" by New York Times columnist Paul Krugman because of huge cuts in income tax rates. Krugman dismissed the notion that the current marginal rate is an obstacle to economic growth. Furthermore, he doubts that the proposed combination of interest rate cuts and removal of cuts and slits will become neutral, let alone increase revenues.
Trade union leaders such as Richard Trumka and some Democratic Representatives Raul Grijalva rejected the plan by saying it cut spending, especially on Social Security, too much. The Institute of Economic Policy calculates that the proposed spending cuts will reduce payroll jobs by approximately 1.9 million jobs by 2014, and that the losses generated in the government's tax revenues will reduce the effect of reducing the proposed deficit by half. This institution is referred to as "budgeting for much-needed fiscal stimulus in the near future...." The chairman's proposal was also criticized by conservative interest groups such as defense contractors, to cut defense spending, and America for the Tax Reform, marginal interest and overall Federal revenues.
This proposal is better accepted by the Third Way Democratic think tank, Progressive Policy Institute, Jim Cooper (D-Tenn.) Representative, Senator Ron Wyden (D-Oregon) and Harvard economist Greg Mankiw. The elected senator Rand Paul (R-KY), a supporter of the Tea Party, stated that the proposed changes to the rights expenditure should come into effect more quickly than in the coming decades but praise the proposal as it also has "some good ideas". The Concord Coalition, a non-profit and non-partisan anti-deficit activist group, praised the report and marked it as "a promising start."
End package
The final plan, released on December 1, 2010, aims to reduce the federal deficit by nearly $ 4 trillion, stabilize the growth of debt held by the public in 2014, reducing 60 percent of debt by 2023 and 40 percent by 2035.
Expenditures will be equal to 21.6 percent of GDP by 2015, compared to 23.8 percent in 2010 and will fall to 21.0 percent by 2035. Revenue will increase from 14.9 percent in 2010 to 19.3 percent by 2015 and will be equal to 21.0 percent by 2035.
Built from a baseline called "Plausible Baseline", which closely resembles the Budget Fiscal Scenario of the Congressional Budget Office, the proposed plan is about $ 2 in spending cuts to $ 1 in revenue increases. The sensible Baseline is built from the current legal base line by assuming that 2001/2003 tax cuts are extended except for those above $ 250,000, the estate tax and Alternate Minimum Tax will continue at 2009 levels, Medicare doctors pay for freezing will continue and war expenditures will be reduced based on the current administration policy.
The final plan is broken down into six major components (savings is 2012-2020):
- $ 1.661 billion of discretionary spending cuts by placing discretionary spending limits into law lower than projected to spend.
- $ 995 billion in additional revenue with $ 785 billion in new revenues from tax reforms by lowering corporate tax revenue and rates and expanding its base by eliminating tax expenditures. An additional $ 210 billion in revenue is also raised in other income by switching to Chain-CPI and increasing federal gasoline tax
- $ 341 billion in federal healthcare savings by reforming the Sustainable Growth Rate for Medicare, revoking the CLAS (already existing) Act, increasing Medicare cost sharing, reforming health care claims, changing provider payments, increasing drug rebates and setting budgets long term for total federal health care spending after 2020 to 1 percent GDP.
- $ 215 billion in other mandatory savings by moving to the Chained CPI for all inflation-indexed programs, reforming the military pension system and civil servants, reducing agricultural subsidies, reducing student loans, and other reforms.
- $ 238 billion in Social Security reforms, which will be used to ensure the program is sustainable solvent on the infinite horizon by slowing the growth of benefits for high and middle income workers, increasing the age of early and normal retirement to 68 by 2050 and 69 by 2075 by indexing it for longevity, the cost of the CPI chained-life adjustment index, including newly hired country and local workers after 2020, raises the payroll tax limit to cover 90 percent of wages by 2050 and creates new minimum and old-age benefits.
- Budget Process Reform by creating discretionary spending limits and limiting total federal income by 20 percent of GDP.
The plan also proposed an additional $ 673 billion in savings, as projected lower interest payments as a result of a lower deficit.
End selection
The plan was released on December 1, 2010, falling short of supermajority on December 3, with 11 of the 18 votes in favor, Voting for the report Bowles, Coburn, Conrad, Crapo, Cote, Durbin, Fudge, Gregg, Rivlin, Simpson, and Spratt. Votes against are Baucus, Becerra, Camp, Hensarling, Ryan, Schakowsky and Stern.
On March 28, 2012, representatives of Jim Cooper (D-TN) and Steve LaTourette (R-OH) proposed draft law, with, according to analyst Ezra Klein, "somewhat less in tax increases," for voting in the House where it was rejected 382 up to 38. 22 Democrats and 16 Republicans supported the bill.
Reaction
There was a mixed reaction to the plan. Some praised the recommendations of the proposals while others attacked them. One of the supporters, Maya MacGuineas at the Committee for Responsible Federal Budget, said of the plan, "The Commission releases not only a credible plan, but a very good plan.Of course filled with things that no one else likes - that is the nature deficit reduction.But the plan received bipartisan support from the majority of the Commission at a time when, until now, fiscal leadership has been in short supply "
Commission member Jan Schakowsky released an alternative plan.
Other key supporters of the plan include New York Mayor Michael Bloomberg, former Federal Reserve Chairman Alan Greenspan, Senator John McCain and Minor Democrat Whip Steny Hoyer.
Over time, there has been increased support for the plan, including some that initially opposed it such as former trade union leader Andy Stern and Democratic leader Nancy Pelosi.
The plan is not universally praised. Dean Baker of the Center for Economic and Policy Research in Washington criticized the deficit report for ignoring taxes on the financial industry, as recommended by the International Monetary Fund.
New York Times columnist Paul Krugman writes, "Simpson-Bowles is terrible, he plays with taxes, but is obsessed with lowering marginal rates even though there is no complete evidence that this is important.It does not offer anything to Medicare that does not exist yet in it, the Affordable Care Act, and this increases the retirement age of Social Security because life expectancy has completely ignored the fact that life expectancy only rises for the rich and educated, while stagnating or even declining among the people who need most programs. "
Resume current range and status
Bowles-Simpson, while never officially coming to the ballot, has received significant attention from the start. The National Journal notes that, "There is hardly any day elapsed in Congress or at meetings without a lawmaker praising Simpson-Bowles as a strong type of fiscal drug America should swallow if the country were to fix its debt. the problem of deficits, reforming the government and reviving the economy. "
The Simpson-Bowles Framework and its goal of deficit reduction of $ 4 trillion have been used by others, such as President Obama and Speaker Boehner in their negotiations during the summer of 2011. Senate "Gang Six", with Senators Mark Warner, Kent Conrad, Richard Durbin, Tom Coburn, Mike Crapo, and Saxby Chambliss, were formed by trying to form a consensus on deficit reduction. Then, Senators Mike Bennett and Mike Johans. Gang 6 released their plans during the summer of 2011, during Debt Ceiling negotiations, but has since continued to work on ways to forge ways to avoid fiscal cliffs.
In addition, during the spring of 2012, a Budget Resolution based in part on the Simpson-Bowles plan was elected in the House of Representatives. The plan was canceled 382-38.
Simpson and Bowles have done more outreach. In November 2011, Simpson and Bowles filed written testimony to the "supercommittee" accused of making budget adjustments by Congress, urging 12 supercommittee members to "get big" toward the $ 4 trillion savings that the NCFRR has recommended. a $ 1.2 trillion deficit reduction of the most talked about by the congressional and senator committee members. Simpson and Bowles also warned that failure to reach some of the deals "may result in another downgrade", although Moody's separately said the failure alone would not result in a change in US ratings, as the trigger would still result in a $ 1.2 trillion cut. In that case, Simpson and Bowles stated, "the only thing worse than the failure by the committee to approve the austerity will remove the 'seize' [or 'trigger'] mechanism for automatic deductions." Bowles said in verbal testimony that "[c] ollectively, I am afraid you will fail".
Both Simpson and Bowles have appeared in various media discussing their plans and current fiscal situation such as fiscal cliffs by the end of 2012 and are widely quoted in the media on fiscal issues. In addition, Simpson and Bowles have helped set up two organizations that work partly for their plans - the Moment of Truth Project and the Campaign for Fixing Debt.
Finally, some aspects of the Simpson-Bowles plan have become law. The Budget Control Act of 2011 includes discretionary spending caps, albeit to a lesser extent. In addition, the CLASS Act is enacted as Title VIII of the Patient Protection and Affordable Care Act but withdrawn January 1, 2013.
See also
- Omnibus Budget Reconciliation Act of 1993
- Actions Deficit Reduction from various years
- National Economic Commission 1987
- United States Federal Budget
- Budget Control Act of 2011
References
External links
- Official website
- The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010
- The draft proposal of co-chairs, November 2010
- Announcement of the White House
- February 18, 2010 Presidential Executive Order
- Erskine Bowles and Alan Simpson, Co-chairs, US Deficit Commission on Charlie Rose , November 16, 2010 (50:37 video)
- Erskine Bowles and Alan Simpson, Co-chairs, US Deficit Commission at Charlie Rose , March 29, 2012 (51:43 video)
- Rep. Jan Schakowsky on the Commission's Deficit News Report on True News (TRNN), 3 December 2010 (video 5:14)
- The Bowles-Simpson "Headquarters" Deficit Reduction Plan, summary and detailed analysis of the Tax Policy Center
- Fix Debit campaigns established by Simpson and Bowles
- Budget Center & amp; Policy Priorities - What's Really at Bowles-Simpson - And How Do We Compare It With Other Plans? October 2012
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