- ...the President will demand that the Committee pursue a balanced deficit reduction package, where any entitlement reforms are coupled with revenue-raising tax reform that asks for the most fortunate Americans to sacrifice.
- The Enforcement Mechanism Complements the Forcing Event Already In Law – the Expiration of the Bush Tax Cuts – To Create Pressure for a Balanced Deal: The Bush tax cuts expire as of 1/1/2013, the same date that the spending sequester would go into effect. These two events together will force balanced deficit reduction. Absent a balanced deal, it would enable the President to use his veto pen to ensure nearly $1 trillion in additional deficit reduction by not extending the high-income tax cuts.
Another question: Ezra Klein once wrote that the deficit reduction plan that Obama floated in April called for I think $1.5 trillion in new revenue -- in any case, much more than the $800 billion that was allegedly on the table with Boehner. I have sought clarification on that; I don't see it in the plan outline posted by the White House. You can't double-count revenue gains from letting the Bush cuts for the wealthiest expire and for tax reform that would lower all marginal rates while reducing tax expenditures. Thorough tax reform renders the Bush cuts moot. As far as I can tell, what the administration has in mind is sunsetting the Bush rate cut for the wealthiest 2% and then tacking on a few reductions in deductions that benefit the wealthy primarily or exclusively.You know, millionaires and billionaires.
See also: Obama's uncertain trigger finger