Summaries Of Proposed Tax Code Changes

The President’s Commission on Fiscal Responsibility Fall 2010

Also referred to as the Deficit Reduction Commission and the Simpson-Bowles Report (the names of the two Chairmen who produced the Commission report) this group was tasked with coming up with deficit reduction proposals and if they had enough votes, to send that report to Congress for a vote.  While the Commission report did not succeed in getting enough votes, many of the proposals contained in the draft report have already worked their way into legislation.

For more information the President’s commission on Fiscal Responsibility Report can be found here:http://www.fiscalcommission.gov/sites/fiscalcommission.gov/files/documents/TheMomentofTruth12_1_2010.pdf

Congressional Budget Office (CBO) Report March 2011

The Congressional Budget Office (CBO) released a report in 2011 proposing to reduce the amount you can contribute to your retirement plan and eliminate catch-up contributions which allow those over 50 years old to make additional contributions to their retirement savings plan. The purpose of the report was to find ways to increase the revenue collected by the federal government. The full CBO report can be found here: http://www.cbo.gov/ftpdocs/120xx/doc12085/03-10-ReducingTheDeficit.pdf

Bi-Partisan Policy Center Report (also called Domenici-Rivlin)

This report suggested many changes to the current tax code and received a fair amount of attention because of the two primary authors being a former Senate Budget Committee Chairman and the former head of the Office of Management and Budget.  Bipartisan Policy Center Report: http://www.asppa.org/Document-Vault/pdfs/GAC/Domenici.aspx

Brookings Institution Proposal by William Gale, released 9-8-2011

The Brookings Institution introduced a proposal by William Gale called  A Proposal to Restructure Retirement Saving Incentives in a Weak Economy with Long-Term Deficits which would replace the tax deferral for employer and employee retirement plan contributions with a limited refundable tax credit. The Brookings Institute Proposal by William Gale: http://www.brookings.edu/papers/2011/0908_retirement_incentives_gale.aspx

The Super Committee, Fall 2011

The Joint Select Committee on Deficit Reduction or “Super Committee”, though it did not complete its work, considered proposals that would change tax incentives currently in the code. It is widely expected that those proposals will resurface when Congress considers reforming the tax code over the next two years. More information on the Super Committee is available at: http://www.deficitreduction.gov/public/