–Former Sen. Domenici, Ex OMB Chief Rivlin Say ‘Sacrifice’ Needed
–In Essay, Domenici, Rivlin Call For Host of Social Security Fixes
–Domenici, Rivlin Call For Broad Tax Reform

By John Shaw

WASHINGTON (MNI) – In another attempt to get American policymakers
focused on fixing the ballooning federal budget deficit and soaring
debt, former Senate Budget Committee Chairman Pete Domenici and former
White House budget director Alice Rivlin said Wednesday that a sweeping
plan of spending and tax reform is critical to fixing the nation’s
fiscal mess.

In an essay in the Washington Post, Domenici and Rivlin say “the
status quo is not an option and everyone must sacrifice a little in the
common interest.”

Domenici and Rivlin are co-chairs of a budget project sponsored by
the Bipartisan Policy Center. They will formally unveil their report at
a Washington press conference later in the morning.

In their report, Domenici and Rivlin call for a one year payroll
tax holiday in 2011 which would suspend Social Security payroll taxes
for employers and employees. This is an effort to boost the economy in
the short-term.

But the bulk of their report focuses on long-term reforms. They
advocate “dramatically” overhauling the tax system, creating individual
rates of 15% and 27%, down from the current high of 35% and cutting the
corporate tax rate from 355 to 27%.

They call for a 6.5% debt reduction sales tax.

Domenici and Rivlin call for broad Social Security reform,
including raising the amount of wages subject to a payroll tax, reducing
benefits for wealth recipients of Social Security and changing the cost
of living formula.

Domenici and Rivlin call for Medicare reform and capping and then
phasing out the tax exclusion for employer provided health care
insurance.

Domenici and Rivlin also call for freezing most parts of the
discretionary budget.

This is one of three reports that have been released in the last
week to address the nation’s deficit problems.

** Market News International Washington Bureau: (202) 371-2121 **

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