The bi-partisan gang of 6 has unveiled a compromise on the debt ceiling. Their plain calls for eliminating tax loopholes that will bring in 1 trillion in additional revenue. It calls for 3 Trillion in cuts in programs. AN interesting not, it calls for establishing 3 tax rates as opposed to the 5 we have now. There are no details as of yet, so I’ll wait and see before I cast judgement.
Leaders of a bipartisan “Gang of Six” senators said Tuesday that they’ve reached agreement on a major plan to cut the deficit by more than $4 trillion over the coming decade in what could be a bold entry into a debate on the deficit long bogged-down by bitter partisanship.
[….]
More than $1 trillion of the deficit cuts would come from tax increases reaped as Congress overhauls the loophole-choked U.S. tax code. It would also repeal a long-term health care program established under the last year’s health overhaul and force up to $500 billion in cuts from federal health care programs over the upcoming decade, according to documents provided to senators at a Tuesday morning meeting but not publicly released.
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The tax reform outline would set up three income tax rates: a bottom rate of 8-12 percent; a middle rate of 14-22 percent and top rate of 23-29 percent to replace the current system that has a bottom rate of 10 percent, with five additional rates topping out at 35 percent. It would reduce but not eliminate tax breaks on mortgage interest, higher-cost health plans, charitable deductions, retirement savings and tax credits for families with children.
Details, please!
Tags: Debt Ceiling, Debt Crisis, Gang of 6
