When the gang of 6’s plan was revealed, I was in a wait and see mode. Well that’s over now. Clearly this plan is nothing more than a stealth tax increase. Originally it was stated that 1 Trillion in new revenue would be raised by closing loopholes, not raising rates. Well it turns out, the plan really raises taxes by 3 Trillion!
According to the outline, the $1.5 trillion in “tax relief” is how the Congressional Budget Office would score the plan.
But what the gang conveniently leaves out is that the CBO’s forecast has $4.6 trillion in tax hikes already baked into it. That’s because the CBO baseline assumes all the Bush tax cuts get repealed, that every other temporary tax cut is left to expire, and that the alternative minimum tax continues to entrap millions more middle-class families each year.
Once you take that into account, the $1.5 trillion in “tax relief” turns instead into a $3.1 trillion tax increase over the next decade. (It’s anyone’s guess where the gang got its $1 trillion tax hike figure.)
Like all bipartisan plans, it’s really a way for the Progressives to get the GOP to surrender. This plan is useless and will not reduce the debt or deficits. Does anyone really believe that even having an additional 3 Trillion in revenue will reduce anything? They will piss that money away. This gang of 6 plan is a scam.
Tags: Debt Ceiling, Debt Crisis, Gang of 6
