The Moment of Truth

2 12 2010

As mentioned in a previous post (America, on a Budget) the Debt Panel was to release their final proposal, entitled “The Moment of Truth,” on Wednesday December 1st with recommendations to mitigate the nation’s $4trillion deficit over 10 years.

They plan to take this to a vote on December 3rd.

There are some minor adjustments to the original proposal I discussed last time, which include:

Pay roll tax holiday for part of 2011. This would affect either the workers or employers payroll tax only, and would mainly be used as an economic stimulus measure.

The commission must gain support from 14 of its 18 members which is no small task. ‘The Moment of Truth’s” main goal was to gain much needed attention to the disturbing amount of debt that the U.S. and its citizens are facing. Even if the report does not gain enough votes, the report will continue to be used as a framework for lawmakers as they continue to strategize on how to get the debt under control. Not only that, but in February, President Obama will release the 2012 budget proposal and it will likely contain some of, “The Moment of Truth’s” recommendations.

If the report does gain the 14 needed votes, the recommendations will not take effect until 2012. A gradual approach is wise so that is will not shock the ongoing economic recovery that the country is currently undergoing.

** UPDATE** December 3, 2010

The results of the debt panel vote are in! Although it did not garner the 14 out of 18 votes that would be needed to take the proposal before Congress for a legislative vote, more than 60% voted in favor. A strong 11 out of the 18 members voted yes, which to many was unexpected. Another reason why this is so incredible, is because of the members who voted, 5 were Republican, 5 were Democrats and 1 was an Independent, which shows unprecedented bipartisan support. One thing is for sure, this is has certainly opened the doors for discussing the national debt crisis, and we can expect much more in 2011.




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