RPT-UPDATE 1-Revised US deficit panel plan seeks deeper cuts

(Repeats to additional subscribers with no change to text)

* Speeds up effort to balance budget to 2035 from 2037

* Targets $4 trillion in deficit reduction through 2020

* Would allow some limited tax expenditure add-backs
(Adds revised plan details)

WASHINGTON, Dec 1 (BestGrowthStock) – A presidential panel’s
revised plan to balance the U.S. budget on Wednesday proposed
deeper spending cuts than an earlier draft and a more modest
tax code overhaul, seeking wider support among lawmakers.

The revised plan resembles the original Nov. 10 draft in
many ways, but cuts discretionary spending more aggressively,
offers more alternatives to reforming the tax code, and softens
proposed changes in Social Security pensions.

It represents an effort to build more support among
Democratic and Republican lawmakers on the panel, who are
divided over a range of tax and spending questions.

The plan recommended capital gains and dividends be taxed
at ordinary income tax rates — instead of the lower present
rate of 15 percent — or taxed at a lower rate if paid for by
higher rates of ordinary income tax.

The proposals will be discussed on Wednesday at a meeting
of the commission and voted on on Friday, but it was not
expected to win the support of 14 of the panel’s 18 members, a
threshold that would trigger a congressional vote on it.

As in the original draft, which was widely criticized, the
revised version recommends lower corporate tax rates and calls
for a 15-cent per gallon increase in the gasoline tax, with
revenues to be devoted to transportation spending.

In a symbolic gesture, it calls for cutting the budgets of
the White House and Congress by 15 percent and immediately
freezing the salaries of members of Congress, along with a
three-year freeze on non-military federal worker pay.
(Reporting by Donna Smith and Kevin Drawbaugh, Editing by
Chizu Nomiyama)

RPT-UPDATE 1-Revised US deficit panel plan seeks deeper cuts