Fiscal deal opens door to big tax and entitlement changes

Author: Amy Volk | Posted: 10/18/2013

The deal struck Wednesday in Washington could make it easier for lawmakers to make big changes to tax policy, spending and entitlement programs. Here’s a look at what is in the accord, what didn’t make the cut and what’s coming down the pipeline.

This deal is an important way forward for big policy changes

While a lot of the news focused on the aspects of the deal that ended the shutdown and prevented default, the plan also calls for an agreement by mid-December on a long-term budget plan. Senate Majority Leader Harry Reid said on the Senate floor Wednesday that under his agreement with Senate GOP Leader Mitch McConnell, the two leaders would name members to a bicameral budget conference committee “that will set our country on a long-term path to fiscal sustainability.”
The House and Senate each have already passed their own conflicting versions of a budget plan for 2014. The aim of this committee would be to come up with a compromise budget blueprint which would then be put to a vote in each House. This blueprint could be the vehicle for major policy changes intended to reduce budget deficits and debt. These might include tax increases and curbs in the entitlement programs such as Medicare.

Source: Friends of the U.S. Chamber