Obama Says Progress Being Made As “Gang Of Six” Plan Gains Momentum
A plan by the “Gang of Six” senators that would cut deficits by $4 trillion over the next decade is picking up steam.
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.
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 over the coming decade that would be finalized in a second piece of legislation. Most of that savings would come from four years of caps imposed on the day-to-day budgets of cabinet agencies set by the annual appropriations bills. It would also curb the growth of Social Security benefits by moving to a lower inflation adjustment for annual cost-of-living updates.
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.Click here for reuse options!
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