SUPER COMMITTEE DRAFT PROPOSALS

THE DEFICIT REDUCTIONSCOMMISSION HAS THE FOLLOWING DRASFT PROPOSALS ON THE TABLE

Tax cuts and changes

Consolidate the tax code into 3 individual rates and one corporate rate-Based on the options, the bottom tax rate will be between 8% and 15%, the middle rate would be between 14% and 25% with the top rate capped at 35%, Tjhe corporate rate would be cut to 26%

Repeal the alternative maximum tax

Triple standard deduction to $30,000 ($15000 for indivuals)

Repeal state & locval tax deductions, cafeterria plans and itemized deductions

Limit mortgage interest deduction to exclude 2nd residences, home equity loans and mortgages over $500,000

Treat capital gains and dividends as ordinary income

15 cent increase in the gas tax

Gradually increase the taxable minimum to capture 90 % of wages by 2050 (vs 82% at the end of this decade

Social , medicare and health care changes

Tjhe SS retirement age would rise to 68 in about 2050 and 69 in 2075, as the retirement age is indexed to increases in longevity

Pay doctors and other providers less, improve efficiency, and reward quality by speeding up payment reforms and increases drug rebates

Pay lawyers less and reduce the cost of defensive medicine by adopting comprehensive tort reform

Replace existing cost sharing rules with universal deductible, single co-insurance rate and catastrophic cap for medicare part A and B

Add a robust public option and/or all-payer sysrtem in the health exchange system

Add a new special minimum benifit to keep full career minimum wage workers above the poverty threshold

Give retirees the choice of collecting half their benifits early and the other half at a later age to support phased retirement options

Federal and militart changes

Use the highest 5 years to calculate civil service pensions and ask federal workers to contribute half the cost (not 1/14th)

Reform COLA payments for civilian & military retirees

Reform military retirement system to vest after 10 years (not 20), defer collection until age 60

Reducing congressional and white house budgets by 15%, freezing federal salaries and cutting the federal workforce by n10%

Freeze defense department salaries and non combat pay at 2011 levels for 3 yearsd, cutting overseas bases by one third and doubling proposed cuts in military contracting

IT IS ALWAYS GOOD TO REMEMBER THAT, MORE SO WITH POLOTICIANS THASN OTHER, THAT THE DEVIL IS IN THE DETASILS

Hi Scott, These are draft proposal on issues that have been discussed within the committee, there are some things I think are pretty good ideas. 1, simplify the tax code into 3 individual rates one for the low income , one for the midle income and one for the most affluent( read recently that gross incomes between 25,000 and 75,000 are considered middle class_) My opinion would be 0-30,000 as low income, 30,000-150,000 middle incomend 150,00 up as affluent.
2 Repeal the AMT- the original purpose of AMT was to ensure that the citizens with the highest income would pay a maximum tax instead of a moderate tax. Over the years the most affluent earners in our society have figured out ways to avoid the AMT and mor and more middle income taxpayers have been sufject to it
3 limiting mortgage interest deductions is a good idea
4 tort reform, especially in the health area is long overdue
5 freezing salaries and perks to all federal employees for 10 years and making making federal employees(including members of congress and requiring them to contribute at least one half to their retirement and health insurance plans.
The committee still has a long way to go as to how the various things affected will be worded and we must always remember that the devil is in the details of any legislation
Bill

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william uthe October 26, 2011 at 11:01am

Hi Scott, These are draft proposal on issues that have been discussed within the committee, there are some things I think are pretty good ideas. 1, simplify the tax code into 3 individual rates one for the low income , one for the midle income and one for the most affluent( read recently that gross incomes between 25,000 and 75,000 are considered middle class_) My opinion would be 0-30,000 as low income, 30,000-150,000 middle incomend 150,00 up as affluent.
2 Repeal the AMT- the original purpose of AMT was to ensure that the citizens with the highest income would pay a maximum tax instead of a moderate tax. Over the years the most affluent earners in our society have figured out ways to avoid the AMT and mor and more middle income taxpayers have been sufject to it
3 limiting mortgage interest deductions is a good idea
4 tort reform, especially in the health area is long overdue
5 freezing salaries and perks to all federal employees for 10 years and making making federal employees(including members of congress and requiring them to contribute at least one half to their retirement and health insurance plans.
The committee still has a long way to go as to how the various things affected will be worded and we must always remember that the devil is in the details of any legislation
Bill

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