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Gang of Six: A Plan for a Plan

By Joseph Lawler on 7.19.11 @ 3:32PM

It appears that the action on the debt ceiling has shifted to the Senate. With Sen. Tom Coburn rejoining the "Five Guys," thereby making them the Gang of Six again, and President Obama cautiously latching on to the group's nascent plan, it looks as though the Gang of Six proposal is, for right now, the most plausible blueprint for a compromise plan.

Perhaps the reason the Gang of Six plan is politically viable is that is mostly a promise to make cuts in the future, rather than a measure to cut spending now. The plan would only cut about $500 billion immediately, and most of that would be spending already agreed to by all sides: discretionary spending caps, a federal worker pay freeze, and a (gradual) shift to the chained CPI to calculate retirement benefits.

The measure would also "require" committees to come up with longer-term measures that would bring the total amount of deficit reduction to $3.6 trillion over 10 years. In other words, the bill would force committees to figure out how to trim entitlements (without fundamentally reforming them), simplify the tax code by eliminating preferences and loopholes and lowering rates, and lower other spending.

The plan is intended to increase revenues both by leading to higher economic growth and by cutting tax preferences and loopholes more than tax rates. However, because repeal of the alternative minimum tax is included, according to the authors, "if CBO scored this plan, it would find net tax relief of approximately $1.5 trillion."

The Gang of Six plan is a far cry from the Cut, Cap, and Balance strategy that Republicans in the House are pushing for right now. It's even further from the $9 trillion debt reduction plan Coburn released just yesterday. In terms of guaranteed cuts, it does less than any plan yet proposed, except for the McConnell Plan B. The vast majority of the spending reductions would be left up to Democratic-chaired committees to determine, to be worked out after the debt ceiling is raised.

Daniel Mitchell has more on the good, the bad, and the ugly of the proposal. Conn Carroll thinks that, by the gang's own logic, the plan constitutes a $3 trillion tax hike.

View all comments (20) | Leave a comment

Bob| 7.19.11 @ 3:54PM

I will simplify this issue for you. The Republican Party will cave like they have done for years; the debt-ceiling raised and taxes increased including removal of loopholes, no significant budget cuts except the military and no balance budget. Don't you right wing ideologues get it? I will be generous and give you a hint. The weak link of the GOP/conservatism is in the senate, always has been.

C Bowen| 7.19.11 @ 4:47PM

LOL--cuts to the military? The welfare/warfare state is the same team. Oh sure, they'll keep cutting medical expenses, and keep stealing pensions, but the Saddam is mean and scary crowd will get plenty more of their favorite boondoggle.

When Reagan pressured to raise the debt limit in the House, there were Republican Congressmen in tears at the betrayal.

Blaming the Senate, blaming the House...yeah, sure I like to blame TARP Ryan's plan which called for raising the debt ceiling part of the problem, but the issue is the entire phony charade of the Ruling Class.

Timothy L. Pennell| 7.20.11 @ 7:16AM

I don't know about YOU, but I don't think that we gave the House of Representatives all those New People, so that 3 RINOS in the Senate, could have the final say on these things.
They wanna act like Democrats? I think it's time that we showed them how to act like Democrats.
I'm SERIOUS, when I say this: It's time to FILL THE BUSES, and pay these people a VISIT, at their HOMES. Not where they live in the Beltway. At their REAL HOMES. Where THEIR Families live. That's what Democrats do, ALL THE TIME.
I am SICK of all this double dealing, and these people living in ONE AMERICA, while we eat DOG FOOD, in the other one.
We've done everything RIGHT. Played by the rules. Did our civic duty. And, look what it'd gotten us.
NOTHING!
Every Republican in this GANG OF SC*MBAGS, needs to hear from US, at their HOMES.
Every Republican who VOTED for this Indonesian Muslim's MARXIST PLANS, needs to be paid a VISIT.
That's what the Democrats would do.
It's high time these self serving SOBs were MADE TO LISTEN!

Oldefarte| 7.19.11 @ 4:13PM

I still think the only possible option is the McConnell plan [including IMMEDIATE spending cuts, not futuristic ones]; which forces Obama/Democrats to accept or reject. Either forces them to take total responsibility for the debt ceiling raising and the political advantage with the voters from same. If/when the R's gain political majority in November of next year, then that is the opportune time to begin budgetary downsizing of government by restricting governmental departments/agencies funding, eliminating foreign aid expenses, etc. These current Republican plans are all subject to the Senate's defeat or Obama's veto. McConnell's plan effectively if accepted by Obama/Democrats, avoids the disasterous financial/economic explosion that a governmental shutdown/default would cause!!!!!!!!!!!!!!

WarEagle| 7.19.11 @ 4:13PM

Wow! Who might have seen this coming? The RINOs in the Senate haven't screwed the American people in days! I didn't think they would do it again, and again and again and again...

martin j smith| 7.19.11 @ 4:28PM

Reject the "gang of six " plan. It will not only not solve our problem but add to those problems because it fails to control spending. NO NO and NO

David| 7.19.11 @ 4:47PM

ARE THEY SERIOUS. This is a tax hike pure and simple. The cuts will never come. I cannot believe anybody seriously believes buynch of politicians promises to cut spending in the future. It will never happen. If we can't cut spending NOW, who thinks we will cut spending later when the pressure is off. Who is stupid enough to believe that the Senate Dems will agree to cuts in the future. I cannot believe how utterly stupid the Republicans in the Senate are. What utter crap.

Mike| 7.19.11 @ 5:10PM

No, no, no, no, no, and no...one for each of the "Gang of Six." I agree with David - the tax hikes come and the spending cuts never see the light of day. Stop the spending and vote the RINOs out of office.

Mike| 7.19.11 @ 5:11PM

And I needed to say "HELL NO" to the President.

Timothy L. Pennell| 7.19.11 @ 5:48PM

I'm sorry. Maybe it's just me, but, I don't think that we went out there and PROTESTED, and attended RALLIES, and put in our BLOOD, SWEAT, and TEARS, to get all of those new Republicans elected to the House of Representatives, so that an OLD BAG, like Kay Baily Hutchinson, and those other 2 SENATE LOSERS - Yeah Coburn, I'm talking about YOU, could just P*SS IT ALL AWAY!
We didn't elect 80 NEW HOUSE MEMBERS, so that these 3 PIECES OF SH*T, could throw a freakin MONKEY WRENCH into the whole F-ING DEAL.
COBURN, you're TOAST.
I think it's time that we took a page from the Democrat's Playbook, and started FILLING UP BUSES, for a visit to these SCUMBAG'S HOMES.
Who's with me?

Kyle| 7.19.11 @ 6:38PM

We need to protest and rally some more; this time we need to protest and rally against these RINOs.

Mimi| 7.19.11 @ 7:19PM

" The vast majotity of the spending reductions would be left up to Democratic-chaired committees to determine to be worked out after the DEBT-CEILING is RAISED"

Thats all I need to read...a BAD DEAL for AMERICA....OMG here we go again! O.K. we work to primary and support the Conservative in EVERY senate RACE....It needed many more anyway...focus..zero in..STAY strong...we all knew the battle has just begun...MORE..HILL to CLIMB....SO what else is new...WE are Patriots..It will be DONE just like 2010!

Mike G| 7.19.11 @ 8:05PM

I hope they can get a reasonable compromise. There is good commentary on the budget and Catholic social teaching at http://www.catholicurrent.com/#/.

Michael L. Hauschild| 7.19.11 @ 8:08PM

Gang bang from six.

Chuck| 7.19.11 @ 8:34PM

It started with McConnell last week, then 1/2 of the gang of 6 and now the GOP senators are lining up in favor of the Democratic plan of debt-ceiling increase, higher taxes and phony spending cuts. Even Representative Cantor agrees with Coburn, soon the House Republicans led by the Speaker will fall into place and Obama wins.

LarryK| 7.19.11 @ 8:45PM

Hanging??

Wayne | 7.19.11 @ 11:22PM

3 Republican plan and 0 Democratic plan and Obama gets to choose. Even the "cuts" are a charade. I can only conclude the the GOP is in league with Obama. They are just the blocking backs for for the Democrats.

chester arthur| 7.20.11 @ 8:57AM

Tax hikes now,reductions in tax breaks for individuals now,but spending cuts later?You've got to be kidding.A spending cut deferred will never happen.One of these 'gang of six' was a former Virginia governor who,in times of budget shortfall,refused to cut his staff of devoted young men(real,REAL devoted),while cutting public services to scare the public into accepting the biggest tax hike in Virginia history.It's no accident that the 'gang of six' sounds so much like China's old 'gang of four'.It's the same principle,self-aggrandizement at the expense of the public good.

Derek Leaberry| 7.20.11 @ 9:04AM

One would wish that it be made clear to the American people that any plan of longer than two years can be altered by a new Congress. For sake of argument, if Andrew Cuomo is elected president in 2016 with Democratic majorities in Congress, he can blow any plan legislated in 2011 to smithereens. And that is what Barack Obama expects.

All American American| 7.20.11 @ 10:01AM

I just called my creditors and told them my new plan for paying bills. I keep spending and spending NOW, with the promise that 10 years from now I'll pay it back. Its my Obama/Gang of Six plan.

Yeah they didn't like that. Not one bit.