As Published in the Holiday 2012 Edition of NJ Lifestyle
This past week, while attending a national investment advisor conference Schwab Impact 2012 in Chicago, we had the privilege of hearing a speech from former Senator Alan Simpson (Republican) and former Chief of Staff for President Clinton Erskine Bowles (Democrat) on the fast approaching fiscal cliff our nation faces (See Spring 2012 Issue for our analysis of the fiscal cliff) and the need for comprehensive federal budget reform.
In 2010, President Obama created the National Commission on Fiscal Responsibility and Reform to identify policies to improve the fiscal situation in the medium term, and to achieve fiscal responsibility over the long run. The bi-partisan commission included nineteen appointees, including six Senators and six members of the House of Representatives. They came up with a report, which is commonly referred to as the “Simpson-Bowles Plan” that included comprehensive budgetary reforms that would cut our federal debt by $4 trillion over a ten year period.