The Gang of Six plan calls for an immediate $500 billion “down payment” on cutting the deficit as the starting point toward cuts of more than $4 trillion that would be finalized in a second piece of legislation. It would raise revenues by about $1 trillion over 10 years and cut popular benefit programs like Medicare and Medicaid - dealing out political pain to Republicans and Democrats.
The Senate’s so-called “Gang of Six” plan – named for the group of six Democratic and Republican senators that worked on it over the past several months – would immediately impose $500 billion in savings while** reducing marginal income tax rates and ultimately abolish the controversial Alternative Minimum Tax.**
The plan would create three tax brackets with rates from 8% to 12%, 14% to 22%, and 23% to 29% – part of a new structure designed to generate an additional $1 trillion in revenue. It would require cost changes to Medicare’s growth rate formula, as well as $80 billion in Pentagon cuts.
They did it with some good tax reform thrown in and without raising the top rate! Good job!
I still like the House plan better, but I think this one can pass…that’s important. I’m glad the president is supporting it.
DOCUMENT: Gang of Six Deficit Plan Executive Summary
The following outline was provided to 49 senators who attended a bipartisan briefing on the progress of the Senate’s Gang of Six, a group working toward a fiscal bargain based on last year’s Bowles-Simpson commission report. The document quickly spread to K Street and throughout Washington.
Contributors include Senate Minority Leader Dick Durbin, D-Ill., Senate Budget Committee Chairman Kent Conrad, D-N.D., and Sens. Mark Warner, D-Va., Mike Crapo, R-Idaho, Saxby Chambliss, R-Ga., and Tom Coburn, R-Okla.
Thank you for this link
May it promote the common good, and I commend everyone who is attempting to reach across the aisle for a reasonable agreement.
As I mentioned in another thread, this sounds like a return to business as usual. I’ll bet the revenue increases kick in right away, but the difficult cuts will be deferred indefinitely (or at least until after the election); aka “kicking the can down the road”.
They’re calling for $500 Billion of immediate cuts, so I wouldn’t make that bet.
That said, what concerns me is not the plan as it stands. Rather, the problem is that nothing will actually be passed in time. This means, there will probably be a debt limit increase in advance of passed legislation. I don’t think we can count on Congress or the President to pass something that actually matches up with the executive summary, as presented.