simpson & bowles ready to violate the cat food commission's charter

[Hannah Bell]

Simpson-Bowles' Violation of Charter is Characteristic of Their Approach

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For Immediate Release: November 30, 2010
Contact: Alan Barber, [phone]

Washington, D.C.- CEPR co-director Dean Baker released the following statement today regarding the national Commission on Fiscal Responsibility and Reform:

"The charter that created President Obama's National Commission on Fiscal Responsibility and Reform explicitly states that: 'a vote on the approval of a final report is required not later than December 1, 2010.' Former Senator Alan Simpson and Erskine Bowles, the co-chairs of the commission, have now said they intend to directly violate the commission's charter by delaying a vote until Friday, December 3rd.

"This changing of the rules, which further reduces the time for Congress to consider any recommendations from the commission, is typical of a commission that was ill-conceived from the onset.

The fundamental premise of the commission is that the country suffers from serious deficit problems that Congress is unable to address through its normal processes. This view does not correspond with the facts as can be easily shown.

"There has been no explosion of spending whatsoever.

The Congressional Budget Office shows that non-interest spending was 19.8 percent of GDP in 1980.

Its analysis of President Obama's 2011 budget projects that non-interest spending will be 21.1 percent of spending in 2020. This means that over the course of 40 years spending other than interest will have increased by just 1.3 percentage points of GDP.

"Rather than being a cause for concern, the rise in the deficit in the downturn has been essential for sustaining demand in the economy...

Remarkably, the co-chairs of the commission never seemed to have considered a tax on the financial sector as a source of revenue (a policy that is even recommended by the IMF), in spite of the fact that it was largely responsible for the current crisis.

"The projections of longer-term budget problems are almost entirely due to a projected explosion in health care costs. The United States already pays more than twice as much per person for its health care as other wealthy countries with the same or longer life expectancies...

"However, rather than honestly discuss the problems of the U.S. health care system, Simpson and Bowles have used the projections of exploding health care costs as an argument for gutting Medicare and Medicaid, leaving tens of millions at risk of not being able to afford health care.

"It is time to impose some honesty on the commission's co-chairs. Under the law, the report is due tomorrow.

If they don't have a report on December 1, the commission will have violated its own charter and Simpson and Bowles should look for another vehicle to pursue their agenda."

http://www.cepr.net/index.php/press-releases/press-releases/statement-from-dean-baker-on-president-obamas-national-commission-on-fiscal-responsibility-and-reform

[pa28]

1. They've made a habit of violating the scope of the charter.

Simpson and Bowles attacked deficit neutral Social Security, included a tax cut for the wealthy (in a deficit reduction commission!?) and then suggested they would submit a report to congress anyway even if they did not get the required 14 votes.

Simpson went a step further and suggested his recommendation would get pushed into law as the result of the coming budget crisis in the spring.

Even ignoring Simpson's obnoxious comments about the "310 million tit cow" Obama has had every legitimate reason to disband the commission yet he's been totally silent. I can only conclude he is on board with their approach.

:shrug:

[glitch]

2. Absolutely -- they started out violating the scope and no one called them on it.

Typical criminals, give them an inch they'll go for the mile.

[Recursion]

4. It's not a tax cut

It's a lower rate with almost every deduction and credit for the rich taken out, which ends up with rich people paying more of their actual income in taxes.

[pa28]

5. They recommended an increase in capital gains.

That's good.

However the deductions (or "loopholes" as they've recently been tagged) mentioned in the preliminary report are associated with lower and middle class earners. The mortgage interest deduction, the health care deduction and the child credit.

Are those the deductions and credits you are referring to?

[Starry Messenger]

3. recommend.