Obama praises 'Gang' plan as debt debate begins

hosted.ap.org/dynamic/stories/U/US_DEBT_SHOWDOWN?SITE=ALOPE&SECTION=HOME&TEMPLATE=DEFAULT

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.

cnn.com/2011/POLITICS/07/19/debt.talks/index.html

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.

nationaljournal.com/budget/document-gang-of-six-deficit-plan-executive-summary-20110719

Thank you for this link :slight_smile:

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. :stuck_out_tongue:

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.

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