5) Isn’t the Fiscal Commission’s plan a violation of the tax pledge signed by some members of the Commission?
The Commission plan would cut tax rates, potentially to their lowest level in almost a century, broadening the base, reducing the deficit, and eliminating backdoor spending in the tax code. The deficit reduction from the tax reform recommended by the Commission would be achieved primarily by eliminating or scaling back tax expenditures, many of which are simply spending by another name. By simplifying the tax code and lower individual and corporate tax rates in this manner, the Commission plan will promote economic growth, and generate more income for the American people and businesses. Failing to take action on our long term deficit problem will increase the risk of large, ongoing tax increases in the future.
The Commission plan also required that the spending cuts be put in place before the revenue changes occur. In addition, any revenue growth beyond the static projections that is achieved through faster economic growth generated by tax reform will be plowed back into additional rate reduction or deficit reduction, not higher spending.