2.3: Failsafe
PUT FAILSAFE IN PLACE TO ENSURE SWIFT PASSAGE OF TAX REFORM. Other Information:
To ensure Congress moves quickly to enact comprehensive tax reform, the Commission recommends enacting a “failsafe” that will
automatically trigger should Congress and the Administration not succeed in enacting legislation by 2013 that meets specified
revenue targets. If Congress and the Administration do not act, the failsafe would impose either: 1) an across-the-board reduction
of itemized deductions, above-the-line deductions, non-refundable credits for individuals, the income tax exclusion for employer-provided
health care, general business credits, the domestic production activities deduction beginning in 2013 and increasing over
time to raise $80 billion in FY 2015 and $180 billion in FY 2020; or 2) a trigger which reduced tax expenditures further and
moved rates and expenditures down toward the levels specified in Recommendation 2.1, assuming such a trigger met the same
revenue and progressivity targets.
Indicator(s):
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