With the election behind him, Barack Obama's first item of business will be dealing with the fiscal cliff--that toxic combination of tax increases and automatic spending cuts that are due to kick in on Jan 2, unless Congress acts to delay or replace them with a long-term deficit reduction plan. Going over the cliff would mean deep cuts in a wide range of government programs. [...]
A bipartisan deficit reduction plan proposed by the so-called "gang of six" Democratic and Republican senators would repeal the Community Living Assistance Services and Supports (CLASS) Act. CLASS, a national, voluntary long-term care insurance program, was included as part of the 2010 health law. The new budget plan, which President Obama called a "very significant step" also proposed significant, but unspecified [...]
Erskine Bowles and Alan Simpson, the co-chairs of President Obama's deficit reduction commission, have called the CLASS Act "unsustainable" and are proposing that it be either reformed or repealed. They say the national voluntary long-term care insurance program passed as part of this year's health reform law "is viewed by many experts as financially unsound." The first version of the Bowles-Simpson [...]