President Obama's hopes for a 'grand bargain' both to raise the debt ceiling and rein in the deficit got a boost Tuesday when the Senate's 'Gang of Six' proposed $3.7 trillion in deficit reductions.
Speaking at the top of Tuesday’s regular White House briefing, the president called the senators' framework “broadly consistent” with his “balanced approach” of using both spending cuts and increased revenues to achieve major deficit reduction and thus secure congressional approval for raising the national debt ceiling. After Aug. 2, the government runs out of borrowing authority, and thus risks a potentially calamitous default.
the plan closes tax-loopholes, but actually LOWERS taxes on the rich....and yet still saves $1 trillion through these methods.
It envisions tax changes that would reduce existing breaks for a number of popular items while reducing the top income bracket from the current 35 percent to 29 percent or less.
Debt hope: Obama praises 'Gang of Six' plan - Yahoo! News
someone wanna explain that to me?
I haven't seen the details, but it certainly implies there were some very large loopholes. And it's $1 trillion over the decade, which is only $100 Billion a year.
the plan closes tax-loopholes, but actually LOWERS taxes on the rich....and yet still saves $1 trillion through these methods.
It envisions tax changes that would reduce existing breaks for a number of popular items while reducing the top income bracket from the current 35 percent to 29 percent or less.
Debt hope: Obama praises 'Gang of Six' plan - Yahoo! News
someone wanna explain that to me?
how are we increasing revenue by LOWERING taxes?
Μολὼν λαβέ;1059666839 said:So $1 trillion in higher taxes in addition to Obama Care, and $3.7 trillion in deficit reductions over 10 years. Are those tax increases spread over 10 years as well?
how are we increasing revenue by LOWERING taxes?
In 1921, the Coolidge/Mellon tax cut lowered the federal maximum marginal income tax rate (i.e. "taxes on the rich") from 73% to 25%. Revenue to the federal government rose by 2%. At the same time, the percent of the tax burden paid by "rich" people nearly doubled.
In 1932, the federal maximum marginal income tax rate went from 25% to 63%. Government tax revenue dropped from $834 million in 1931 to $427 million in 1932. The tax burden on people making less than $25,000 went from 21% in 1931 to 36.5% in 1932, while the burden on the "rich" decreased!
so, the Gang of Six plan lowers the tax-rate on the rich, and HOPES that this leads to an increase in tax-revenue from the rich?
that's a pretty big gamble. I hope the CBO reviews this plan and confirms its predictions.
The Republican leadership will not allow this to advance especially in the House. they have already made a decision that their highest priority is making sure they win back the White House and Senate in 2012 and they view the best way to do that is to collapse the economy and blame Obama for it.
The Republican leadership will not allow this to advance especially in the House. they have already made a decision that their highest priority is making sure they win back the White House and Senate in 2012 and they view the best way to do that is to collapse the economy and blame Obama for it.
if they kill this plan, and kill the USA, they will suffer in 2012.
BIG TIME
Cut spending: In the near-term, the Gang of Six framework would reduce $500 billion in debt over 10 years. While the plan is silent on the issue of raising the debt ceiling, that down payment presumably could be paired with an increase in the debt ceiling, which must be raised within two weeks.
Down payment measures include imposing statutory discretionary spending caps through 2015, selling unused federal property and changing how cost-of-living adjustments to government payments and tax brackets are calculated. There would be some exceptions, such as postponing the formula change for Supplemental Security Income for five years and then phasing it in over the next five years. SSI goes to seniors and disabled people with very low incomes.
The Gang of Six also would freeze congressional pay and repeal the CLASS Act, which is part of the 2010 health reform law. It was designed for seniors who need help with daily tasks such as bathing and dressing. The program was estimated to add to deficits in its second decade and beyond.
This development is an indication that serious policy makers on both sides of the political aisle may be willing to work together in helping put the nation on a sustainable fiscal path.
How so? It seems unlikely that either side will work together, or put the nation on a sustainable fiscal path.
The Gang of Six plan got a positive reception from a bipartisan group of more than 40 senators earlier on Tuesday.
Coburn Rejoins Gang of Six - By Robert Costa - The Corner - National Review Online“This is more bipartisan,” Coburn says. “‘Cut, Cap and Balance’ would work, but the fact is, you need to get the votes for it.” He calls the “Gang of Six” plan a “good first step” and hopes conservatives recognize that the $500 billion in immediate spending cuts, plus the long-term $3.7 trillion in reductions, are “real” and “buy us time to work over the next three or four years” to enact deeper reforms.
Obama has been doing that. You can not blame the GOP because Obama will not compromise
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