Deficit Commission Proposes Balanced Budget Via Raising Social Security Age, Cutting Tax Benefits
November 11, 2010
(ChattahBox U.S. News) — Most politicians are in favor of erasing the national debt—but whether they agree how to get there will be the big question. The federal Bipartisan Deficit Commission unveiled its plan yesterday to rebalance the budget, proposing to eliminate homeowners’ tax deductions for mortgage interest, increase the early retirement age for Social Security to 64 and the standard retirement age to 69, and lower Social Security benefits for the wealthiest 50 percent of retirees, the Washington Post reports.
The plan would also cut over $200 billion annually from discretionary budgets in the Pentagon and other federal agencies, would alter the tax code to reinstate a 45 percent inheritance tax for estates worth over $3.5 million for individuals, and replace the six tax brackets of today with three brackets, according to the Post.
The Commission was charged by President Obama with balancing the budget by 2015. The plan released yesterday is considered by many to be a “starting point” for the bipartisan discussion, although many lawmakers on both sides of the aisle considered it too harsh, the Post reports.