New Senate Debt Plan Emerges (with bipartisan support.. but will the House of Reps care?)

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JULY 19, 2011, 1:29 P.M. ET

WASHINGTON—A surprise jolt of bipartisan support emerged Tuesday for a $3.7 trillion deficit-reduction plan that had been in development for months, though it was thought to be dead just several weeks ago.

Roughly half of the Senate's 100 members sat through an hour-long briefing on the plan, which was designed by a group of lawmakers known as the "Gang of Six" and would cut spending, overhaul entitlement programs such as Medicare, rework the tax code, and make significant changes to Social Security.

...

A key question remains whether the plan might receive any support in the House, where Republicans have strongly resisted any new proposal that could bring in new taxes. The gang's plan would bring in $1 trillion in new tax revenue over 10 years by narrowing several tax breaks. But Mr. Conrad said it would also lower tax rates and end the alternative minimum tax. He said the combination of tax changes would be viewed by budget experts as a $1.5 trillion tax cut.

"I think the vibe in the room was very positive," said Sen. Kelly Ayotte (R., N.H.), who attended the meeting. "My first impression is that this is a very credible plan."

...

"In the next 24 hours, you are going to see a significant portion of the Senate come behind this, bipartisan," Mr. Coburn said.

Central parts of the plan would:

• Impose immediate spending cuts and caps that reduce the deficit by $500 billion over 10 years.

• Make changes to Social Security to make the program solvent over 75 years.

...

"No one is going to agree with every single thing in this plan," said Sen. Michael Bennet (D., Colo.). "There is no plan that everybody is going to agree with in its entirety. But this plan meets those broad tests and I hope that we can move it forward."

Sen. Mike Johanns (R., Neb.) said he's "become more and more convinced that this is the vehicle that gives us the best opportunity to deal with a whole range of issues. I'm excited about the possibilities here."

http://online.wsj.com/article/SB10001424052702303661904576456042405686316.html?mod=e2fb

The $3.7 trillion deficit-reduction plan would come from roughly 74% spending cuts and 26% new taxes, Mr. Conrad said.

[Mr. Big Dog 10,747]

I like to think that there are 50 sane Republicans left in the House?

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I like to think that there are 50 sane Republicans left in the House?

have you lost your mind?

[Mr. Big Dog 10,747]

have you lost your mind?

Apparently. How silly of me to think that there are any Republicans left in the House that actually want to demonstrate an ability to govern ahead of the next election.

Edited July 19, 2011 by Mr. Big Dog

[dalegg 143]

JULY 19, 2011, 1:29 P.M. ET

WASHINGTON—A surprise jolt of bipartisan support emerged Tuesday for a $3.7 trillion deficit-reduction plan that had been in development for months, though it was thought to be dead just several weeks ago.

Roughly half of the Senate's 100 members sat through an hour-long briefing on the plan, which was designed by a group of lawmakers known as the "Gang of Six" and would cut spending, overhaul entitlement programs such as Medicare, rework the tax code, and make significant changes to Social Security.

...

A key question remains whether the plan might receive any support in the House, where Republicans have strongly resisted any new proposal that could bring in new taxes. The gang's plan would bring in $1 trillion in new tax revenue over 10 years by narrowing several tax breaks. But Mr. Conrad said it would also lower tax rates and end the alternative minimum tax. He said the combination of tax changes would be viewed by budget experts as a $1.5 trillion tax cut.

"I think the vibe in the room was very positive," said Sen. Kelly Ayotte (R., N.H.), who attended the meeting. "My first impression is that this is a very credible plan."

...

"In the next 24 hours, you are going to see a significant portion of the Senate come behind this, bipartisan," Mr. Coburn said.

Central parts of the plan would:

• Impose immediate spending cuts and caps that reduce the deficit by $500 billion over 10 years.

• Make changes to Social Security to make the program solvent over 75 years.

...

"No one is going to agree with every single thing in this plan," said Sen. Michael Bennet (D., Colo.). "There is no plan that everybody is going to agree with in its entirety. But this plan meets those broad tests and I hope that we can move it forward."

Sen. Mike Johanns (R., Neb.) said he's "become more and more convinced that this is the vehicle that gives us the best opportunity to deal with a whole range of issues. I'm excited about the possibilities here."

http://online.wsj.com/article/SB10001424052702303661904576456042405686316.html?mod=e2fb

The $3.7 trillion deficit-reduction plan would come from roughly 74% spending cuts and 26% new taxes, Mr. Conrad said.

Are you telling me that as bad as our deficit is right now, the best we can even hope for is 3.7 trillion dollars in total reduction of 10 years?

Isn't that going to mean we still carry over a trillion dollars in deficit every year? What the f happened around here?

[Mr. Big Dog 10,747]

Are you telling me that as bad as our deficit is right now, the best we can even hope for is 3.7 trillion dollars in total reduction of 10 years?

Isn't that going to mean we still carry over a trillion dollars in deficit every year? What the f happened around here?

No, it doesn't. Current baseline projection is a cumulative deficit of 6.7 trillion dollars from 2012-2021. This would be reduced to a cumulative $3 trillion over that period if this plan is adopted. That's an average of $300BN a year which is 2% or less of GDP which would be a sustainable rate being below the average annual GDP growth rate.

[Usui Takumi 1,562]

Sounds pretty good and has bipartisan support - I imagine house republicans are looking for a parachute right now anyway.

Edited July 19, 2011 by Sousuke

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In a statement at the beginning of today's press briefing, Obama called the Gang of Six proposal "broadly consistent" with the vision for deficit reduction he laid out, adding that it is "balanced."

Obama has frequently mentioned that any debt limit deal will have to be in "balance."

The president called the Gang of Six proposal a "very significant step" in the talks, saying he has to read it over before giving it his full-throated endorsement.

http://www.businessinsider.com/obama-to-speak-on-debt-ceiling-and-deficit-talks-at-130-2011-7

[Usui Takumi 1,562]

In a statement at the beginning of today's press briefing, Obama called the Gang of Six proposal "broadly consistent" with the vision for deficit reduction he laid out, adding that it is "balanced."

Obama has frequently mentioned that any debt limit deal will have to be in "balance."

The president called the Gang of Six proposal a "very significant step" in the talks, saying he has to read it over before giving it his full-throated endorsement.

http://www.businessinsider.com/obama-to-speak-on-debt-ceiling-and-deficit-talks-at-130-2011-7

Its all on him now...

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Its all on him now...

####### is powerless. He has no control whatsoever over his caucus. They control him.

[dalegg 143]

####### is powerless. He has no control whatsoever over his caucus. They control him.

Pretty much. I would guess he wishes he'd get support for this, but it won't come.

[^_^ 5,021]

Pretty much. I would guess he wishes he'd get support for this, but it won't come.

The only way this passes the House is if a group of Republicans decides to pull away from the rest of the party and vote with the Democrats.

If that happens, the GOP primary season will be a helluva lot more fun than the general election!

[dalegg 143]

The only way this passes the House is if a group of Republicans decides to pull away from the rest of the party and vote with the Democrats.

If that happens, the GOP primary season will be a helluva lot more fun than the general election!

It's about to get reeeeal interesting...and loud.

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It's about to get reeeeal interesting...and loud.

If I were a betting man (I am not, I am pretty much a pu$$y when it comes to money) I'd bet that some GOPers split and that it happens roughly along regional lines. Republicans from the deep south stay in their strong we hate obama position while the others shift around a little (just a little) to avoid financial dooooooooooooooooooooooom.

[dalegg 143]