As Richard Kogan at CBPP recently pointed out in an eye-opening paper, the Bowles-Simpson plan does not work as advertised with $4 trillion of total deficit reduction of which only $1 trillion takes the form of tax hikes. The reality is Bowles-Simpson assumes (1) that the Bush tax cuts are not extended for families with incomes over $250,000 and (2) tax reform raises over $1 trillion in revenue: a total of more than $2 trillion in tax hikes. This is totally unacceptable to House Republicans, as House Majority Leader Eric Cantor explains in a recently released powerpoint presentation. It is a well-produced and extremely clear presentation that everyone--even those who don't agree with Mr. Cantor's positions--should take five minutes to view.
Tax Analysts Blog
Cantor Rejects Most of Bowles-Simpson
Posted on Oct 26, 2012