Obama's Bipartisan Debt Reduction Commission Proposal Linkfest

Obama's bipartisan debt-reduction commission is not due to present their report to Obama for a few weeks, but a draft from the co-chairmen of the commission has been released, PDF found here, and reactions thus far from the left have been pretty extreme.

CNN has a pretty good run down on exactly what is included in this draft and people do need to remember this is the opening volley, not the finished report nor proposal from the whole commission that will hit Obama's desk.

Set targets for revenue and spending: The report recommends that taxes be capped at 21% of gross domestic product. It would also limit federal spending initially to 22% of the economy and eventually to 21%.

Rein in spending: The report proposes close to $200 billion in domestic and defense spending cuts in 2015. (Deficit fighting: The first cut is the deepest)

Reform tax code: The report would lower income tax rates and simplify the tax code. It would abolish the Alternative Minimum Tax -- the so-called wealth tax -- and reduce tax breaks.

Change Social Security: The report aims to make Social Security solvent over 75 years through a number of measures, including smaller benefits for wealthier recipients, a less generous cost-of-living adjustment for benefits, and a very slow rise in the retirement age (from 67 to 68 by 2050; rising to 69 by 2075). It also would expand over 40 years the amount of workers' income subject to the payroll tax.

Control health care costs: The report recommends capping growth in total federal health spending -- everything from Medicare to health insurance subsidies -- to the rate of economic growth plus 1%.

NYT reports on the basics:

A draft proposal released Wednesday by the chairmen of President Obama’s bipartisan commission on reducing the federal debt calls for deep cuts in domestic and military spending starting in 2012, and an overhaul of the tax code to raise revenue. Those changes and others would erase nearly $4 trillion from projected deficits through 2020, the proposal says.

The plan would reduce projected Social Security benefits to most retirees in later decades — low-income people would get higher benefits — and slowly raise the retirement age for full benefits to 69 from 67, with a “hardship exemption” for people who physically cannot work past 62. And it would subject higher levels of income to payroll taxes, to ensure Social Security’s solvency for the next 75 years.

TPM also has a nice breakdown.

Reactions

Needless to say anytime anyone mentions cutting domestic spending, liberals start having a cow and this is no different, with Pelosi calling it unacceptable and liberal pundits and bloggers pitching a fit. Although some liberals seem to be able to stop the knee jerk reactions and consider the conversation started.

On the other side of the aisle, conservative pundits and bloggers reactions are cautiously optimistic, with notable exceptions, with the understanding that this proposal is the start of the conversation, not the be-all-end-all and not the final product by a long shot.

More reactions coming out a mile a minute over at Memeorandum.

.