Deficit Panel Releases Proposal To Reduce Social Security Benefits

November 11th, 2010 - 9:05 pm ICT by GD  

By Gina Gomez
parttyWashington, Nov 11, (THAINDIAN NEWS) A bipartisan panel that was established by United States President Barack Obama issued a proposal on Wednesday with the aim of repealing a number of popular tax breaks as well as decreasing the Social Security benefits to the retirees in the future. The details of the preliminary report was revealed on Wednesday and the 18-member panel would be placing the recommendations officially in front of President Barack Obama on December 1.

The report was issued by Democrat Erskine Bowles, who is the president of the University of North Carolina and Alan Simpson, a former Republican Senate leader. The recommendations include curbing the increases in the social security benefits as a step to balance the federal benefit, tax reform and many other ways to decrease the deficit by $4 trillion within the time span of the next decade. the report says that three quarters of the $4 million would be achieved by spending cuts which also takes into account defence and the remaining would be achieved from tax revenues. The proposal is likely to save $200 billion in both domestic and defence spending by the year 2015 and at the same time would also impose caps on the amount of spending beyond defense and retirement benefits that can be sanctioned.

In the meanwhile, U.S. President Barack Obama who is presently in his ten-day Asia tour has refused to comment about the recommendations that have bee released by the bipartisan commission. However, the United States President noted that there was lot of rhetoric about the debts as well as deficits of the country but added that “a lot of the talk didn’t match up with reality.”

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