The commission on reducing the national debt devised a plan that calls for deep cuts in domestic and military spending, a gradual 15 cents a gallon increase in the federal gasoline tax, limiting or eliminating popular tax breaks in return for lower rates, and benefit cuts and an increased retirement age for social security. This relates to our in class discussion on tax expenditures, or special provisions in the income tax system that provide financial incentives to individuals. This plan would reduce the cost of living, including social security, but the issue of equity arises in that the government is making budget cuts in other areas and while taxes are being increased gradually it could make a world of difference to low income individuals.
http://www.nytimes.com/2010/11/11/us/politics/11fiscal.html?scp=1&sq=tax%20expenditures&st=cse
-Kelly Neary
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