Obama Commission - Background Article by Wikipedia

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National Commission on Fiscal Responsibility and Reform
From Wikipedia, the free encyclopedia – as of 1/15/2010

The National Commission on Fiscal Responsibility and Reform is a Presidential Commission created in 2010 by President Barack Obama to identify "…policies to improve the fiscal situation in the medium term and to achieve fiscal sustainability over the long run."[1] The commission first met on April 27, 2010.[2] A report was released on December 1, 2010, but failed a vote on December 3 with 11 of 18 votes in favor, with a supermajority of 14 votes needed to formally endorse the blueprint.[3]
Contents· 1 History · 2 Commission members · 3 Working groups · 4 Public outreach · 5 Chairmen's draft proposal · 6 Criticism · 7 See also · 8 References · 9 External links

History

The original proposal for a commission came from bipartisan legislation that would have required Congress to vote on its recommendations as presented, without any amendment. In January 2010, that bill failed in the Senate by a vote of 53-46, when six Republicans who had co-sponsored it nevertheless voted against it.[4] Thereafter, Obama established the Commission by Executive Order 13531. Former Republican Senator Alan Simpson (R-WY), after his appointment to co-chair the Commission, criticized the former supporters who had voted against the bill, saying that their purpose "was to stick it to the president."[5] In the absence of special legislation, the Commission's proposals are not guaranteed to be considered by Congress in a single up-or-down vote.

Commission Members and Working groups
This section does not cite any references or sources.Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (November 2010)

The commission decided to create 3 working groups to focus on discretionary spending (DS), mandatory spending (MS), and tax policy (T).

[Reading Liberally Editorial Note – the members were re-sorted from the Wikipedia listing to indicate who appointed them to the Commission]

President Obama’s 6 appointees –

Co-Chair Erskine Bowles (Democrat – Pres. of Univ. of North Carolina and President Clinton’s Chief of Staff and Dep’y Chief of Staff) – No Working Group Assignments

Co-Chair Alan Simpson (the sole Republican among President Obama’s six appointees – U.S. Senator 1/1/1979 > 1/3/1997 during which he served as Republican Whip (No. 2 Senate Republican) under Bob Dole 1/3/1985 > 1/3/1995) – No Working Group Assignments.

Four Democrat Members -

Dave Cote – Tax + Discretionary
Ann Fudge – Tax + Discretionary
Alice Rivlin – Mandatory + Discretionary
Andy Stern – Tax + Mandatory


Appointees of Senate Democrat Leader Harry Reid –

Sen. Baucus – Tax + Mandatory
Sen. Conrad – Tax + Mandatory
Sen. Durbin – Tax + Discretionary


Appointees of House Democrat Leader Nancy Pelosi –

Rep. Becerra – Tax + Mandatory
Rep. Schakowsky – Mandatory + Discretionary
Rep. Spratt – Mandatory + Discretionary


Appointees of Senate Republican Leader Mitch McConnell –

Sen. Coburn – Mandatory + Discretionary
Sen. Crapo – Tax + Mandatory
Sen. Gregg – Tax + Mandatory


Appointees of House Republican Leader John Boehner –

Rep. Camp – Tax + Mandatory
Rep. Hensarling – Mandatory + Discretionary
Rep. Ryan – Mandatory + Distretionary

Public outreach

Simpson was interviewed by Neil Cavuto on Fox News in April, covering tax-vs-spending balance in the Commission's work ("Everything's on the table," Simpson said), the value-added tax ("[T]o drag this great specter,… like a dead rat through the room, without doing something with the income tax, is a fakery. …I haven’t the slightest idea. But if you’re going to mess around in that area or flat tax or any other tax… you’re going to go adjust all the other taxes in accordance"), the general fiscal situation ("This country’s in a mess"), and a response to Grover Norquist calling Simpson "old and grumpy, and [saying Simpson] doesn’t like Reagan Republican Party members" ("old Grover Norquist and his happy band of goofy warriors, all they do is make money off of people," Simpson replied).[7] Simpson and Bowles were also interviewed by Chris Wallace, also on the eve of the first Commission meeting,[8] Simpson's latter appearance, particularly as it bore on entitlements, attracted comment from the Columbia Journalism Review[9] and James Ridgeway,[10] among others.

A health-care component of the overall U.S. federal and state fiscal-management challenge was addressed by a panel including Rivlin on the Diane Rehm Show in June.[11]

Chairmen's draft proposal

On November 10 Commission co-chairs Simpson and Bowles released a draft proposal for consideration by other commission members. The proposal presented five "steps." The first step was a $200 billion reduction in discretionary spending[12] with proposed cuts including reducing defence procurement by 15% and closing one third of overseas bases, eliminating earmarks, and cutting the federal work force by 10%. The second step was $100 billion in increased tax revenues through various tax reform proposals,[12] such as introducing a 15 cent per gallon gasoline tax and eliminating or restricting a variety of tax deductions such as the home mortgage interest deduction and the deduction for employer-provided healthcare benefits. The third step was controlling health care costs by maintaining the Medicare cost controls associated with the recent health care reform legislaton,[12] in addition to considering a public option and a further increase in the authority of Independent Payment Advisory Board. The fourth step was a reduction in entitlements, including farm subsidies, civilian and military federal pensions and student loan subsidies.[12][13] Finally, the fifth step was modifications to the Social Security program to raise the payroll tax and to increase the retirement age.[12] The co-chairs also recommended some measures they felt would stimulate economic growth, such as a cut in the corporate tax rate from 35% to a more internationally competitive 26%.[12][14][15]

After the chairmen's briefing to the commission members, two Democratic Party members, Senator Durbin and Representative Schakowsky, publicly criticized the plan.[12] Senator Kent Conrad (D-ND), however, declined to criticize the proposal, saying "nstead of shooting this down propose an alternative. But one that does as good a job as this one does in getting us back on a sound fiscal course."[16] Senator Judd Gregg, the senior Republican on the Senate Budget Committee, noted that the report was a "starting point" which shows the size of the problem.[12]

The proposal was dismissed as "unserious" by Paul Krugman for not raising income taxes nearly enough.[17] Union leaders such as Richard Trumka and several Democrats such as Speaker Nancy Pelosi and Representative Raul Grijalva rejected the plan saying it cut spending, especially on Social Security, too much.[18] The Economic Policy Institute calculated that the proposed spending cuts would reduce payroll employment by roughly 1.9 million jobs by 2014, and that the resulting loss in the government's tax revenues would cut the proposal's deficit-reducing effect in half.[19] The institute called instead for "budgeting for more desperately needed fiscal stimulus in the near-term...."[19] The chairmen's proposal was also criticized by conservative interest groups such as defense contractors[20] and Americans for Tax Reform.[21]

The proposal was better received by the Democrat-affiliated but business-friendly think tank Third Way,[22] Representative Jim Cooper (D-Tenn.),[23] Senator Ron Wyden (D-Oregon)[24] and Harvard economist Greg Mankiw.[25] Senator-elect Rand Paul (R-KY), a Tea Party supporter, stated that the proposed changes to entitlement spending should take effect sooner instead of in future decades but praised the proposal for also having "some good ideas".[26] The Concord Coalition, a non-profit and non-partisan anti-deficit activist group, applauded the report and labeled it a "promising start." [27]

President Obama asked critics of the proposal from either side of the political spectrum to exercise caution, saying "efore anybody starts shooting down proposals, I think we need to listen, we need to gather up all the facts."[28]

The Center on Budget and Policy Priorities evaluated the draft plan, praising that it "puts everything on the table" but criticizing that it "lacks an appropriate balance between program cuts and revenue increases."[29]

Criticism

The commission has been criticized as deliberating in secret and as being "stacked with people who want to target entitlement spending rather than any balanced proposal."[30] Because it could lead to cuts in benefits for Social Security and Medicare, many progressives are calling this a 'cat food' commission,[31] on the grounds that it will allegedly eliminate key portions of the social safety net, forcing some people (particularly the elderly) into such extreme poverty that they will only be able to afford to eat cat food. An early user of the term was the liberal blogger Digby.[32] Commission staffers working for external think tanks has also been an issue.[33]

Economist James K. Galbraith submitted a statement to the Commission on behalf of Americans for Democratic Action. He argued that the current deficits were caused by the financial crisis; that cuts in Social Security and Medicare would be harmful and would not reduce the deficit; and that the Commission would do best "by advancing no proposals at all."[34]

Dean Baker of the Center for Economic and Policy Research in Washington criticizes the deficit report for omitting a tax on the financial industry, as was recommended by the International Monetary Fund. He also denounces co-chairs Alan K. Simpson and Erskine Bowles for claiming to have looked everywhere on ways to increase revenue, but not including the financial industry. Also, Baker said that a possible conflict of interest exists regarding Erskine Bowles for serving on the board of Morgan Stanley while being on the commission and asks for further investigation into the connection between Bowles' role as a director of Morgan Stanley and the omission of any financial taxes in the report.[35]

See also

· Omnibus Budget Reconciliation Act of 1993
· Deficit Reduction Act of various years
· National Economic Commission of 1987
· United States Federal Budget
· Thomas Andrews Drake (NSA whistleblower)

References

1. ^ Office of the Press Secretary (February 18, 2010). "Executive Order -- National Commission on Fiscal Responsibility and Reform". Press release. http://www.whitehouse.gov/the-press-off ... and-reform. Retrieved November 11, 2010.
2. ^ Lee, Jesse (April 27, 2010). "Getting to the Root Causes of Our Fiscal Challenges". The White House Blog. http://www.whitehouse.gov/blog/2010/04/ ... challenges. Retrieved November 11, 2010.
3. ^ a b Paletta, Damian (December 1, 2010). "Mortgage Tax Break in Crosshairs". Wall Street Journal. http://online.wsj.com/article/SB1000142 ... 55808.html.
4. ^ Rushing, J. Taylor (February 3, 2010). "Gregg calls for re-vote on fiscal panel". The Hill. http://thehill.com/homenews/senate/7959 ... commission. Retrieved November 11, 2010.
5. ^ Lawrence, Jill (July 11, 2010). "Seven Things Republicans Were For, Before They Were Against Them". Politics Daily. http://www.politicsdaily.com/2010/07/11 ... e-against/. Retrieved November 11, 2010.
6. ^ McLaughlin, Seth (December 3, 2010). "Debt commission falls short on test vote". Washington Times. http://www.washingtontimes.com/news/201 ... test-vote/.
7. ^ "Episode dated April 26, 2010". Your World with Neil Cavuto. Fox News Channel. April 26, 2010. Transcript. Retrieved on November 11, 2010.
8. ^ "Episode dated April 25, 2010". Fox News Sunday With Chris Wallace. Fox News Channel. April 25, 2010. Transcript. Retrieved on November 11, 2010.
9. ^ Lieberman, Trudy (April 30, 2010). "More Words of Wisdom from Alan Simpson". Columbia Journalism Review. http://www.cjr.org/campaign_desk/more_w ... alan_1.php. Retrieved November 11, 2010.
10. ^ Ridgeway, James (May 6, 2010). "Deficit Commission's Alan Simpson Denounces Fat Cat Geezers". Unsilent Generation. http://unsilentgeneration.com/2010/05/0 ... t-geezers/. Retrieved November 11, 2010.[self-published source?]
11. ^ "Medicare Reimbursment Rates and Deficit Spending". Diane Rehm Show. NPR. WAMU. June 15, 2010. Retrieved on November 11, 2010.
12. ^ a b c d e f g h Montgomery, Lori (November 11, 2010). "Deficit panel leaders propose curbs on Social Security, major cuts in spending, tax breaks". The Washington Post. http://www.washingtonpost.com/wp-dyn/co ... 04029.html. Retrieved November 11, 2010.
13. ^ Davidson, Joe (November 10, 2010). "Federal workers' sacrifice would help U.S. debt, deficit panel says". The Washington Post. http://www.washingtonpost.com/wp-dyn/co ... 04105.html. Retrieved November 11, 2010.
14. ^ "Co-Chairs' Proposal". National Commission on Fiscal Responsibility and Reform. November 10, 2010. http://www.fiscalcommission.gov/sites/f ... _Draft.pdf. Retrieved November 11, 2010.
15. ^ Nicholas, Peter; Mascaro, Lisa (November 11, 2010). "Panel weighs deep federal budget cuts to trim deficit". Los Angeles Times. http://www.latimes.com/news/nationworld ... 0646.story. Retrieved November 11, 2010.
16. ^ George Stephanopoulos (November 11, 2010) Sen. Conrad: Extend All Tax Cuts; Time to Get 'Serious' About Deficit ABC News
17. ^ Paul Krugman (November 10, 2010 Conscience of a Liberal blog New York Times
18. ^ Bolton, Alexander (November 10, 2010). "Pelosi, political left rip proposal from debt commission chairmen". The Hill. http://thehill.com/blogs/on-the-money/b ... n-chairmen. Retrieved November 11, 2010.
19. ^ a b Bivens, Josh; Andrew Fieldhouse (November 16, 2010). "Fiscal commissioners’ proposal would cost millions of jobs". Economic Policy Institute. http://www.epi.org/analysis_and_opinion ... s_of_jobs/. Retrieved 2010-11-26.
20. ^ Aerospace Industries Association (November 10, 2010). "Deficit Commission Panel Co-Chair Recommendations Could Undercut Defense". Press release. http://www.aia-aerospace.org/newsroom/a ... t_defense/. Retrieved November 11, 2010.
21. ^ Cohen, Tom (November 11, 2010). "Draft deficit plan launches likely grueling political battle". CNN. http://www.cnn.com/2010/POLITICS/11/10/ ... ommission/. Retrieved November 11, 2010.
22. ^ Think Tank Backs Plan; Challenges Left and Right to “Put Up or Shut Up” Third Way.org November 10, 2010 Retrieved November 11, 2010
23. ^ Dupree, Jamie (November 11, 2010). "Deficit Commission Draft". The Atlanta Journal-Constitution. http://blogs.ajc.com/jamie-dupree-washi ... ion-draft/. Retrieved November 11, 2010.
24. ^ Ron Wyden (November 10, 2010). "Wyden Statement on White House Fiscal Commission’s Draft Report". Press release. http://wyden.senate.gov/newsroom/press/ ... 1f3134821b. Retrieved November 11, 2010.
25. ^ Andrew Sullivan (November 10, 2010 Drop Everything: The Simpson-Bowles Reax The Atlantic
26. ^ Jordan Fabian (November 12, 2010) Rand Paul: Fiscal commission report doesn't go far enough The Hill
27. ^ Concord Coalition Applauds Bowles-Simpson Deficit Reduction Framework Concord Coalition Press Release, November 11, 2010
28. ^ David Jackson (November 11, 2010) Obama to Congress: Stop shooting down deficit proposals USA Today
29. ^ CBPP-Bowles Simpson Plan Evaluation-November 16,2010
30. ^ Dayen, David (May 4, 2010). "Cat Food Commission Will Be Carried Out Partially In Secret". FireDogLake. http://news.firedoglake.com/2010/05/04/ ... in-secret/. Retrieved November 11, 2010.[self-published source?]
31. ^ Cruickshank, Robert (December 8, 2009). "Dianne Feinstein and the 'Cat Food' Commission". Courage Campaign. http://www.couragecampaign.org/page/com ... shank/C2ZF. Retrieved November 11, 2010.
32. ^ Parton, Heather (November 12, 2009). "It's Baaaack". Digby's Hullabaloo. http://digbysblog.blogspot.com/2009/11/ ... -ever.html. Retrieved November 11, 2010.[self-published source?]
33. ^ Eggen, Dan (November 10, 2010). "Many deficit commission staffers paid by outside groups". The Washington Post. http://www.washingtonpost.com/wp-dyn/co ... 06850.html. Retrieved November 11, 2010.
34. ^ Galbraith, James K. (June 30, 2010). "Why the Fiscal Commission Does Not Serve the American People". Franklin and Eleanor Roosevelt Institute. http://www.newdeal20.org/2010/06/30/why ... ple-13742/. Retrieved November 11, 2010.
35. ^ Baker, Dean (November 11, 2010). "Erskine Bowles, Morgan Stanley, and the Deficit Commission". Center for Economic and Policy Research. http://www.cepr.net/index.php/blogs/bea ... commission. Retrieved November 11, 2010.

External links

· Official Site

o The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform

o Co-chairs' proposal

· White House Announcement

· February 18th, 2010 President's Executive Order

· Erskine Bowles and Alan Simpson, Co-chairs, US Deficit Commission on Charlie Rose, November 16, 2010 (60:00 video)

· Rep. Jan Schakowsky on the Deficit Commission Report on The Real News (TRNN), December 3, 2010 (video 5:14)