Budget

Economists see Bowles-Simpson plan increasing unemployment

by Erik Wasson - 07/06/11 5:28 PM ET

{mosads}The plan by former Sen. Alan Simpson (R-Wyo.) and former Chief of Staff to President Clinton Erskine Bowles, co-chairmen of the president’s bipartisan National Commission on Fiscal Responsibility, proposes to achieve balance in the primary budget by 2015 and restore balance in the overall budget by 2040, with taxes and spending limited to roughly 21 percent of GDP. It achieves this through two-thirds spending cuts and one third tax increases.

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