New York Mayor Michael Bloomberg is calling to end the 2001 and 2003 tax cuts for the farm, energy, and wealthy subsidies to help balance out the rising tax deficits and national debt. He wants all tax brackets to be a part of this situation and proposes the following:

1. Raise Social Security’s eligibility age gradually over the next six decades
2. End tax cuts that were introduced by George W. Bush
3. Millionaires and other high-income taxpayers face a scheduled return of limits on itemized deductions and personal exemptions.
4. Revert tax rate on capital gains from 15 to 20%
5. Dividends would be taxed as ordinary income
6. Individuals earning more than $200,000 in 2013 and married couples earning more than $250,000 would face a 0.9 percent payroll tax increase and a 3.8 percent tax on a portion of net investment income

Current policies will see the national debt rise to $21.5 trillion from $10.3 trillion in ten years and can be averted by a combination of reduced spending on health care, social security, and higher taxes.

Yet, if enacted, this will lead to an outrage of the public as they will lose a large portion of their income. Will this discourage spending back into the economy, or will it decrease the nation debt?

Reference Article: http://money.cnn.com/2011/11/10/markets/bondcenter/italian_bond_yields/index.htm?iid=Lead