A bipartisan task force, led by Alice Rivlin, a member of President Obama’s debt commission, and former senator Pete Domenici, released their plan to cut the deficit. The plan would rely on spending cuts and a debt-reduction sales tax which the task force believes would save $6 trillion by 2020. Law professor Daniel Berman, director of the Graduate Tax Program and both a Treasury and Congressional tax counsel, offers the following commentary:
“Adding a consumption tax probably is the only way to raise sufficient revenue while keeping marginal income tax rates low and maintaining the major tax expenditures that our citizens demand.
“To reject such a structure because of its ‘ties to Europe, ‘ irrespective of its merits or demerits, is simply irresponsible national leadership. In this economic challenge we must learn from other countries rather than reject their choices out of hand.”
Contact Daniel Berman, 617-353-3105, firstname.lastname@example.org