The Gang of Six is back. They’ve devised a plan to deal with the national debt. It’s a little short on details, but The Hill has the broad outline. Senator Tom Coburn had dropped out, but now he’s back in.
“This is a serious, bipartisan proposal that will help stop Washington from spending money that we don’t have, and I support it,” Alexander said.
Coburn said the plan would reduce the deficit by $3.7 trillion over the next 10 years and increase tax revenues by $1 trillion by closing a variety of special tax breaks and havens.
He also noted, however, that the Congressional Budget Office would score the plan as a $1.5 trillion tax cut because it would eliminate the Alternative Minimum Tax. It would generate a significant amount of revenue out of tax reform and reduction of tax rates, which authors believe would spur economic growth.
Coburn said he expected a “significant portion of the Senate” to support the plan: “maybe 60 members.”
I’m a bit confused. Didn’t Coburn just propose $9 trillion in spending cuts?
It’s hard to know if this is a good plan or not without more details, but the fact that President Obama likes it makes me nervous.