Human Events has an article out today saying with the Gang of 6 Plan the National Debt in 2020 will be “roughly $22 Trillion. In other words, your grandchildren and beyond are still being dumped upon. Think of all the increased spending Congress will add between now and then, as these jokers want nothing to do with a balanced budget amendment, which is the assurance we need. See remarks from Speaker John Boehner below regarding Social Security and “triggers to force action,” on the Gang of 6 Plan.
The ten-year federal budget deficit will be in the neighborhood of $12 trillion under present spending levels. That means the exciting new Gang of Six proposal would reduce it by about 30%. We would roll into 2020 with a national debt of roughly $22 trillion.
Yay. We’re saved.
The same people who told us earlier this year that $38 billion in spending cuts would destroy America, and litter the fruited plain with the bodies of dead women, lined up to endorse this new proposal. President Obama gave it a thumbs up, as did Republican “moderates” like Susan Collins. “More than fifty people went in and out of the room” to view this new Ark of the Covenant, according to Collins, and “everyone felt a sense of relief.”
Well, everyone except the poor chumps who will end up paying off that $22 trillion national debt, but what the hell, some of them aren’t even born yet.
Like Coburn’s plan, this new proposal looks forward to “$1 trillion in revenue through closing loopholes and ending tax breaks, with some of it used for deficit reduction, and most used for rate reduction through tax reform.” Tax simplification could produce enhanced revenue while lowering rates, and simplifying the deduction and loophole maze would eliminate some of government’s power over the populace. However, I’m more skeptical of those claims when I hear Barack “Tax Hikes Or Bust” Obama is cool with the new plan…
There aren’t many specific spending cuts outlined in the Gang of Six proposal, which you can read here. Instead, it talks about “ensuring Congressional action to reduce the deficit if the debt-to-GDP ratio after 2015 is not stabilized,” and growth-to-GDP “targets” for rising federal health care spending. In other words, if Congress is still throwing around bags of imaginary money in four years, some really awesome committees will be formed.
Speaker of the House John Boehner (R-OH) said the $3.7 Trillion in “deficit-reduction from the Gang of 6 is “fluff,” and “falls short in important areas. ”
According to sources, House Republicans are also worried the Gang’s plan doesn’t have sufficient triggers to force action on the deficit and could allow committees to stall.
They also are wary of the plan’s complicated mechanism for dealing with Social Security. The plan states that Social Security reform only be taken up once the rest of deficit-reduction plan is completed. If Social Security reform is not passed by a 60-vote margin, the earlier vote on the rest of the deficit-reduction package is nullified.