Deficit Reduction Hinges on Entitlement Reform, Tax Overhaul, Says U.S. Chamber
Subscribe today for Free Enterprise Updates
- Latest business trends and best practices
- News about legislation and regulation impacting business
- Business how-to articles from industry experts
- Commentary and interviews with newsmakers in business and politics
The U.S. Chamber is urging the new deficit reduction super-committee to seize the “opportunity to put the country on the right fiscal road – a road to balance and sustainability,” by reforming entitlements and overhauling the tax code.
In an August 16 letter to the 12 members of the Joint Select Committee on Deficit Reduction, the Chamber called for a slashing of the federal deficit by more than the committee’s mandate of $1.5 trillion over the next decade.
“While this magnitude of deficit reduction [$1.5 trillion] is a step in the right direction, it would fall far short of fixing the deficit and debt problem America currently faces; it would not stabilize the debt to GDP ratio and would not put this ratio on a downward trajectory; and it would fall far short of achieving a balanced budget,” Chamber Executive Vice President for Government Affairs Bruce Josten wrote.
The Chamber argues that entitlement reform and a fundamental restructuring of the U.S. tax code can rein in spending, reduce the deficit, and stabilize and ultimately lower America’s level of debt.
“Entitlement spending is out of control, on autopilot, and leading America toward fiscal disaster,” Josten wrote. “Congress cannot fix the root cause of the problem without addressing the entitlement programs of Medicare, Medicaid, and Social Security.”
On taxes, the current tax code should be revised to lower the overall marginal tax rates without singling out specific industries, the letter stated. Lawmakers should also grant enough time for individuals and businesses to transition to any changes in the tax code.