Commission's final deficit report preserves controversial spending cuts

By Lori Montgomery and Brady Dennis - Washington Post Staff Writers

The leaders of President Obama's fiscal commission released a final report Wednesday that is full of political dynamite, recommending sharp cuts in military spending, a higher retirement age and reforms that could cost the average taxpayer an extra $1,700 a year.

. . .

The plan recommends raising taxes by nearly $1 trillion by 2020, primarily through tax reforms that would eliminate or reduce cherished reductions including the deduction for home mortgage interest; the tax-free treatment of employer-paid health insurance; and preferred rates for capital gains and dividends.
It also calls for a 15-cent hike in the federal gas tax. The top income tax rate for both individuals and corporations would be dramatically lowered, however, from 35 percent to 29 percent or less. And the report recommends a legislative trigger that would raise taxes automatically unless a comprehensive overhaul is approved by 2013.

Future retirees would also face significant sacrifices, including higher Medicare premiums and a retirement age that would rise to 69 by 2075. The early retirement age would rise from 62 to 64.
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