Deficit Commission’s ‘Moment of Truth’

"After all the talk about debt and deficits, it is long past time for America’s leaders to put up or shut up. The era of debt denial is over, and there can be no turning back," says the preamble to the completed Report of the National Commission on Fiscal Responsibility and Reform, which was released today.

Here’s a headline summary of the final report of the NCFRR:

•    Achieve nearly $4 trillion in deficit reduction through 2020, more than any effort in the nation’s history.
•    Reduce the deficit to 2.3% of GDP by 2015 (2.4% excluding Social Security reform), exceeding President’s goal of primary balance (about 3% of GDP).2
•    Sharply reduce tax rates, abolish the AMT, and cut backdoor spending in the tax code.
•    Cap revenue at 21% of GDP and get spending below 22% and eventually to 21%.
•    Ensure lasting Social Security solvency, prevent the projected 22% cuts to come in 2037, reduce elderly poverty, and distribute the burden fairly.
•    Stabilize debt by 2014 and reduce debt to 60% of GDP by 2023 and 40% by 2035.


Here’s a table that summarizes proposed changes in the tax code to reduce the deficit and debt: