Center for American Progress Suggests Deficit Reduction Plan

The Center for American Progress issued a recent report with several methods to reduce the federal deficit.  The variations include different proportions of spending cuts and tax increases.  In the version the group deems the most reasonable, spending would be cut from 24.8 percent of GDP in 2010 to 22.7 percent of GDP by 2015.  Taxes would be projected at 19.8 percent.  The full report can be found at http://www.americanprogress.org/issues/2010/12/first_step.html.

Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal.