Grab Bag of Tax, Spending Proposals Eyed to Cut Deficit

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However, there could be a number of complications with a national sales tax, Shama Gamkhar, economics professor at the University of Texas at Austin.

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One is the intergovernmental issues between states and the federal government.

"What does this do for state and locality incomes?" Gamkhar asked. She said some states have almost no state income taxes balanced by high state sales taxes. "Right now, the sales tax is pretty much a state and local domain."

According to Gamkhar, the goal of a progressive income tax structure is to redistribute revenue at the federal level. Imposing "a national sales tax could change the distributional implications," she said. "So politically I think there's going to be a volatile issue."

Former Gov. Blanchard said the next step of these proposals is uncertain, but the task force of the debt reduction plan have been speaking with members of Congress and distributing the proposal.

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Many economists and policy analysts see a low feasibility that any of these proposals will see the light of day in Congress.

"It's very hard to say at this point," said Gamkhar. "I think the recent change in Congress certainly speaks to reform in some sense, by voter mandate. But what the composition of that reform will be, it's unclear right now."

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