President Obama's "Debt Commission" released a report today (Wednesday) with recommendations on how to cut the federal deficit. The Commission says its recomendations would reduce the federal debt by $4 trillion over the next 10 years. The Commission is made up of 6 Republicans, 6 Democrats and 6 others appointed by the President. In order for any of these recommendations to be put before Congress, at least 14 members of the Commission need to approve the plan. The Commission is set to conduct a vote on Friday.
Major changes to the tax code are a part of the plan. The Commission proposes repealing the alternative minimum tax, creating three tax brackets for individuals (12%, 22% and 28%), and eliminating all itemized deductions (everyone would take a standard deduction, but certain tax credits would be allowed for mortgage interest and charitable contributions).
Corporate taxes would have one flat rate of 28%.
The proposal includes much more than just tax reform. You can read the entire proposal here, and a CNN article about the proposal here.
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