• On The Record (with daily recap)

    • Bipartisan Policy Center: Tax Reform Quick Summary
    • Bipartisan Policy Center: Domenici-Rivlin Protect Medicare Act

    Today in TIE: Reflex, Austin looks at Domenici-Rivlin with competitive bidding, suggests Google Reader fixes, and plumbs NEJM’s take on the PSA kerfuffle, Don and Harold do bloggingheads on CLASS and sports, and Don pans Medicare claims as an epidemiological tool, and NHS reforms, while Aaron looks at the human consequences of not having an individual mandate.

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    • The report starts by saying

      “The BPC Tax Reform Plan represents a radical simplification of the current tax code and would raise approximately $1.3 trillion LESS ( emphasis added) than the system under current law”.

      and ends by saying,

      “The new tax system created under the BPC Plan will be more progressive than the current system and RAISE (emphasis added) the requisite revenue to achieve our debt-reduction goal.”

      I hope the first sentence is a mistake and the last correct otherwise I am really unimpressed.

    • This is a bit confusing, but they actually are both correct. From the system that is in plce today (often referred to as “current policy”), the BPC plan raises well over 2 trillion dollars. This is slightly more than the Bowles-Simpson Commission raised.

      On the other hand, another way to look at it is compared to “current law,” which means following what is scheduled to happen if no further changes to the law were made (e.g., that all of the Bush tax

    • Both high-end and those affecting the middle class, expire at the end of next year). What the first quote that you pulled above conveys is that the BPC reform does not raise as much as letting the tax cuts expire for all Americans (and letting the Alternative Minimum Tax (AMT) hit middle class families – another assumption in the current-law baseline).

      The more helpful comparison is generally current policy – current law is mainly used today as a benchmark for budgeteers.