Deficit reduction is the hot topic in Washington with reports already released by the President’s bipartisan deficit commission and the bipartisan Rivlin-Domenici Debt Reduction Task Force. Co-chaired by former Congressional Budget Director Alice Rivlin and former Senate Budget Committee Chairman Pete Domenici, the task force’s mid-November proposals are the most far-reaching to date, with specific recommendations designed to cut nearly $5.9 trillion in government spending from 2012 to 2020. The report calls for bold reform to the nation’s tax code, as well as a new national sales tax (value-added tax), spending freezes for defense and discretionary spending, cost-control measures for Medicare and Medicaid, and a payroll holiday from Social Security taxes.
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