Gang of Six Plan

[DMcGovern]

I was glad to see Brian Graff's statement in response to the Gang of Six Plan for deficit reduction. Wish we had a way of backing him up!

Would love to hear other's comments.

http://www.asppanews.org/2011/07/21/gang-o...-on-fuzzy-math/

[Dougsbpc]

Unfortunately, I don't think his comments will matter.

It sure seems like most democrats and republicans are in agreement with reducing or eliminating all deductions and in exchange lowering tax rates. The only disagreements are with the amount of revenue that is raised and the fact that entitlements are being cut.

If a compromise is not reached soon they will increase the debt ceiling and then re-visit the tax simplification issue over the next six months. Everyone seems to be on board with this so it will probably not lose steam.

Personally, I think deductions for those things that are difficult for most people and good for society makes sense. Buying a home, charitable giving, paying for health insurance and saving for retirement. However, others will claim that the lower tax rates and individual choice of the tax simplification plan will unleash such entrepreneurial freedom and economic growth that we will look back and wonder why we ever engaged in such backward thinking.

[mbozek]

Even Gang of 6 members doent like the Gang of 6 plan. Tom Coburn derided it today because the supposed $1T in budget cuts will not be made in the present fiscal year but will suposedly begin 5 to 10 years out. He believes that Congress will never cut the budget. The only one who likes the gang of 6 plan is Obama because its the plan with least amount of budget cuts, $1T to the House 5.5T. Now that the 2 minute warning has been reached it looks like Congress will approve the Mitch McConnell proposal to reject raising the debt limit by 2.5T over the next 18 months which will be vetoed by Obama without an override by Congress which will allow Obama raise the Debt limit by $2.5T (a 16% increase). After this farce is completed Congress will hold hearings to approve the budget for the next fiscal year which begins Oct 1 giving the political class the opportunity to participate in the next production of the DC Kabuki theatre. Then on to the presidential election year production.