Fiscal Commission Proposal Would Eliminate Tax Credit Programs
The initial preliminary proposals for cutting government spending and bringing the deficit under control, which was released by the bipartisan fiscal commission appointed by President Barak Obama, is already receiving a lot of criticism from lawmakers and industry groups. Led by former White House Chief of Staff Erskine Bowles and former U.S. Senator Alan Simpson, the commission is proposing to eliminate more than $1 trillion in tax credits and exclusions. One item not specifically mentioned, but assumed to be on the “hit list,” is low-income housing tax credits.
The proposal outline, issued November 11, also seeks the elimination of the Economic Development Administration, which has programs that closely duplicate HUD’s Community Development Block Grants and the New Markets Tax Credit.
White House spokesperson Bill Burton issued the following statement on the initial Bowles-Simpson proposal: “The President will wait until the bipartisan fiscal commission finishes its work before commenting. He respects the challenging task that the Co-Chairs and the Commissioners are undertaking and wants to give them space to work on it. These ideas, however, are only a step in the process towards coming up with a set of recommendations and the President looks forward to reviewing their final product early next month.”