Saxby Chambliss and restored Gang of Six join debt-ceiling debate
Something worth interrupting a vacation for: U.S. Sen. Saxby Chambliss and a restored Gang of Six this morning presented a $3.7 trillion deficit-cutting plan in a bid to couple the mix of cuts and revenue increases to a Senate solution to the debt-ceiling argument.
“Some of the people who don’t want to solve the problem will be critical of it,” said Chambliss, who called only a few minutes ago. The senator said the plan had yet to be presented to House Republicans, where the proposal – based on a bipartisan commission’s recommendations last year – is expected to come in for some rough sledding.
Chambliss reported 50 senators in attendance at the morning session. Among them was Tom Coburn, R-Okla., who months ago had left the bipartisan negotiations led by Chambliss and Mark Warner, D-Va. Coburn endorsed the results, and Chambliss said the presentation won a warm, bipartisan reception.
The plan, said Chambliss, is to couple the deficit-reduction outline to the proposal by Senate Republican Leader Mitch McConnell, R-Ky, that allows President Barack Obama to raise the debt ceiling without congressional approval — averting future deadlines like the one faced by the federal government on Aug. 2, when it will lose its authority to borrow more money, and add to a $14 trillion deficit.
Chambliss said $2.7 trillion in cuts would be accomplished through adjustments to Medicaid and Social Security. Details would be worked out through a bipartisan arrangement later, but Chambliss said an increase in the retirement age and means testing were likely to be adopted for Social Security.
Federal revenue would be increased $1.1 trillion over 10 years through changes to tax deductions currently granted for home mortgage interest, charitable giving, and health care insurance.
But overall, Chambliss said, the package would result in a lowering of personal and corporate income taxes. “We reduce spending, reform entitlements, and reform the tax code,” he said.
Increased economic growth would add another $1 trillion for an overall savings of $3.7 trillion.
The tea-party faction of the House Republican caucus has said it would not support any kind of revenue increases. But Chambliss thinks enough House Republicans might join with Democrats in the chamber to push the idea through.
“I’m at least cautiously optimistic that we’ve got another idea on the table,” he said.
- By Jim Galloway, Political Insider
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134 comments Add your comment
td
July 19th, 2011
4:27 pm
kc
July 19th, 2011
4:18 pm
I am willing to bet that most Americans do not know what a headge fund manager is and really do not care what they are paying in taxes as long as they are getting what they want from the government.
Ghost Rider
July 19th, 2011
4:30 pm
“allows President Barack Obama to raise the debt ceiling without congressional approval”
That is one dumb-ass idea which (I guarantee) will lead to even more economic terrorism!
“Federal revenue would be increased $1.1 trillion over 10 years through changes to tax deductions currently granted for home mortgage interest, charitable giving, and health care insurance.”
Yeah, this is great! People are having a hard enough time avoiding foreclosure now, so we will do away or greatly reduce their mortgage interest deduction. That should create even more foreclosures and devaluation of the property values. It’s always great to change the rules as the game is being played.
“But overall, Chambliss said, the package would result in a lowering of personal and corporate income taxes.”
Would everyone who recalls a tax being lowered once it is imposed, please raise your hand?
“I’m at least cautiously optimistic that we’ve got another idea on the table,” he said.
Saxbo, I’ll give you this much. You and the Republicans have at least put something on the table for discussion, whereas President Obama and the Democrats have put nothing forward except more debt and more deficit spending.
td
July 19th, 2011
4:30 pm
DannyX
July 19th, 2011
4:21 pm
Would you please let us all know how much the Dems increased spending from 2008 to 2010? I bet it is more then the tax cuts.
kc
July 19th, 2011
4:31 pm
found this interesting:Question: Who Invests in Hedge Funds and Why?
Answer: The primary investors are wealthy individuals and institutions. They typically have a great deal of funds to invest, and can weather significant downturns in their portfolio in their quest for higher returns. Many of these investors are trying to outperform the market to recover losses incurred during the stock market crash of 2000. In addition, many pension funds are realizing they may not have the capital needed to cover the mass of retiring baby boomers, and are trying to outperform the market to cover these obligations. Unfortunately, the risky nature of hedge funds, and their lack of regulation, means these pension funds are less likely to cover their commitments.
here’s a primer on hedge funds: http://www.hedgeworld.com/education/index.cgi?page=hedge_fund_basics
note one characteristic is lack of transparency…
Frederick Douglass
July 19th, 2011
4:31 pm
The republicans have crapped in their mess kits with this debt ceiling debacle.Before this thing’s over, they’re going to rue the day that they chose to hand over the reins of their buggy to the Tea Party. F~#&ing idiots!
John Smith
July 19th, 2011
4:36 pm
If the congress had not spent money we did not have to spend in the first place we would not have this problem. Stimulus package of almost $1 trillion dollars which was a total waste as it has not put any dent in helping the economy based on the recent unemployment stats. It is interesting to note that FDR did exactly the same thing which lengthened the great depression by about 8 years. It was only after we produced arms for WWII that the country started to grow its economy. Also I want to note that a economy based on total debt cannot sustain itself. Yes the 14.5 trillion debt is small the experts claim compared America’s economic potential. But look at this in real numbers.
It is like a person earning $50,000 in salary and has $200,000 in credit card debt. Not mortgage or car debt. And to think that this person will start to earn $100,000 a year just like that is not realistic yet this is what the experts are considering that will happen to the US economy. Furthermore the banks have still not learned their lessons on financial prudence. They are still ripping off consumers with high credit card rates, foreclosing on people’s homes when they themselves got bailed out, and are not being responsible with the funds they are investing in. The government both the president and the congress have not been responsible at all with managing the country’s budget. All they care about is getting re-elected and not serving the people with integrity and financial responsibility.
amazing
July 19th, 2011
4:41 pm
I am no fan of Sen. Chambliss. However, I will give him credit for working on a bi-partsian soultion. He has earned it and deserves it. The Gang of 6 were the only ones behaving like adults on the hill. Despite their disagreements, they were able to pull together a plan than can work. I believe these guys showed some leadership versus the political postruing that Cantor and McDonnell have being displaying.
kc
July 19th, 2011
4:41 pm
FD, i doubt it….these folks became zealots only after w pushed us to the brink, but think Obama is the main villain….with major demographic shifts a clear second….it’s human nature
FSG
July 19th, 2011
4:45 pm
It’s not enough, but at least it starts touching social security.
kc
July 19th, 2011
4:47 pm
don’t you just love folks like john smith critizing the stimulus package that included a bunch of tax cuts and unemployment….http://useconomy.about.com/od/usfederalbudget/a/Economomic_Stimulus_Package_in_Detail.htm
so i guess all these folks raling against the stimulus as waste of money want their taxes raised?
EW
July 19th, 2011
4:55 pm
This is how America lost its power. We have a bunch of whimps who live off charity of the tax payer and don’t give a rats aX$ about our American heritage. Saxby Chambliss will go down as the worst senator in Georgia History. Bring on the Tea Party because that is where I am going now! We need term limits and Balanced budget – do you think these idiots could vote for the one thing that would restore our honor in this world, no its all about power – I want to throw up as I know I will see Saxby being swooned all over TV. You sold America out Mr. Chambliss that I know! You guys had the Dems right where you needed them with this vote you will probably give them the White House next year!
kc
July 19th, 2011
5:01 pm
we need to get rid of trade agreements, a study has been done that shows it cost americans $7000 each in thru job losses, promises not kept…job losses to canada and mexico is nearly 1 million jobs
the korean trade agreement will likely lose 159000 jobs over next decade one study predicts
can someone please explain how we can keep importing more goods/services than we produce?
findog
July 19th, 2011
5:01 pm
Mortgage interest was the only thing left for individuals in President Reagan’s grand bargain that was to reset the tax code. Lobbyist then chipped away at neutrality getting special interest tax breaks back into the tax code. If you are going to take that last individual interest deduction then take every corporate welfare payment.
Actually the problem is that W was counting Clinton’s chickens before they hatched: one third for tax cuts, one third for Medicare Rx, one third to pay off the debt. Let the entirety of W’s tax cuts lapse. Remove every corporate giveaway. Have the GOP either come up with the taxes to pay for W’s prescription drug giveaway or do away with it.
Centrist
July 19th, 2011
5:03 pm
This plan is Dead on Arrival in the House – as details emerge, it is a $3 trillion cut in spending (on paper loaded with gimmicks), and a real $1 trillion tax increase.
No wonder Obama and the media are peddling it so hard.
Sam I Am
July 19th, 2011
5:04 pm
“Gang of six” who dreams up this crap? Do they have club jackets and a secret handshake?
Pompano
July 19th, 2011
5:04 pm
“It would reduce but not eliminate tax breaks on mortgage interest, higher-cost health plans, charitable deductions, retirement savings like individual retirement accounts and tax-free savings accounts known as 401(k)s, and tax credits for families with children.”
So basically they are are selling out the middle-class. No defined cuts for the moocher class presented – just take more from those of us that have to work for a living.
Chambliss is pathetic! I don’t care if a monkey runs against him next time, he’ll never get my vote again!
findog
July 19th, 2011
5:09 pm
td, for us mere mortals we have to hold a stock for something like 18 months to call it a capital gain; with proprietary trading they hold it for only nano-seconds, nice try…
Brad_GA
July 19th, 2011
5:10 pm
I am ashamed that MY Senator would support such a proposal, let alone be one of the key drivers of it! Mortgage interest, charitable giving, insurance deductions gone? Translation= Tax increase for the middle class! Just for him signing on to this I will NOT be voting for Chambliss again in 2012. He is a complete idiot for giving an incompetent president total power over raising the debt limit.
WAKE UP EVERYONE! Its the same story! The tax increase becomes effective immediately, and the spending cuts come later—same old story….we get taxed, and the cuts NEVER materalize.
Call or email Senator Chambliss and tell him that the people of Georgia are ashamed to have him as our Senator, and he needs to reverse support immediately if he really cares about this country, or in the least, cares about his job. Either way, I plan on voting for his competitor in 2012…heck, I’d even consider a Democrat contender!
WAKE UP AMERICA—-WE ARE BROKE! Cut, Cap, and Balance NOW!
RetiredSoldier
July 19th, 2011
5:38 pm
Brad-
I’m afraid you are correct. I forsee a stiff challenge in the primary if Saxby decides to run again.
Laurie
July 19th, 2011
5:42 pm
So they are giving the most wealthy people in our country a 6% tax cut, while they reduce spending on Social Security, Medicare, and Medicaid, and take away tax breaks used by the majority of middle class tax payors. Those guys in DC need to be shot.
RetiredSoldier
July 19th, 2011
5:48 pm
Laurie-
Please start with Dick Durbin. This plan won’t go anywhere either so it is most likely a moot point.
Centrist
July 19th, 2011
6:03 pm
Remember, all 100 Senators are multi-millionaires and most make over a million a year. They tax the middle class because THAT is where most of tax revenues come from. They give capital gains tax breaks, trust tax breaks to themselves, wealthy friends, family, and campaign contributors while PRETENDING the truly wealthy pay a greater share of taxes.
Not as true in the House. Democrats there, of course, are for ANY tax increase. The majority of Republicans are not going to go along with the Senate, Obama, or the leftist media. This is just campaign cover.
Lt. Dangle
July 19th, 2011
6:06 pm
Laurie
July 19th, 2011
5:42 pm
“So they are giving the most wealthy people in our country a 6% tax cut, while they reduce spending on Social Security, Medicare, and Medicaid,…”
Whatever taxes the “wealthy” wind up paying will still be way more than you’re paying, so please stifle your socialist urges and just enjoy the wealth transfer that our government has provided for you.
The Centrist
July 19th, 2011
6:19 pm
It tickles me that when a Republican enters a reasonable debate, they are called RINO’s. For the past decade plus one year, the GOP has either been in control being “Rubber Stamps” or being masterful obstructionist as the “Party of No.” Then say the spineless liberals, who have buckled at every turn, have an equal or higher share in the sorry condition of the country. By the way, can anyone tell me the last time a full budget was passed?
The Centrist
July 19th, 2011
6:25 pm
Lt. Dangle. Everytime I go to fill up, I see a wealth transfer.
kc
July 19th, 2011
6:34 pm
lt dangle you want to live in world where top 1% own 43% of financial assets….sorry for your ptsd
http://sociology.ucsc.edu/whorulesamerica/power/wealth.html
kc
July 19th, 2011
6:40 pm
From Bruce Bartlett, former economic advisor to Presidents Reagan and George H.W. Bush:
“This is quite possibly the stupidest constitutional amendment I think I have ever seen. It looks like it was drafted by a couple of interns on the back of a napkin … [It was] designed solely for the purpose of appealing to ignorant Tea Party types.”
sho'nuff
July 19th, 2011
7:27 pm
Boy, are we really Impressed!! We knew you were going to pull this crap a couple of weeks before the deadline.l Coburn pretended to walk out. Then he “suprisingly” returns. And a deal is in the making. This is nonsense Congress the new one, spent all their time on Vacations. Pretending they were meeting with us. Ha!! Westmoreland want come to Harris County/North Columbus, and nor will Saxby!! Government of the Rich, for the Rich and by the Rich. All of us “Little” people don’t matter. They just hum a few lines at election to get us to vote!!
The Snark
July 19th, 2011
7:30 pm
What a shame … an elected official sticks his neck out to try to solve a problem, and what does he get? Thanks? Or even a polite “I disagree”? No, he gets vitriol like the above posts, from people who know less about government than I know about quantum physics. It’s no wonder that so people in Washington prefer to engage in publicity stunts rather than serious governance.
I don’t especially like Chambliss, but he deserves more respect than this.
J reaves
July 19th, 2011
7:48 pm
We are at the point that this is becoming discusting. Everyone knows where the expenses are. Lets address illegal immigration, Welfare (limited assistance like Unemployment), Payments to other countries, grants, taxes (flat/fair tax so everyone pays taxes, not just 48% of us), obama care,……etc…….All could be addressed and fixed in months. Let’s get back to serving your community as a government worker instead of becoming rich, unions should be responsible for their own retirement, why should I pay for yours, mine is expensive enough. Let’s stop the insanity.
RGB
July 19th, 2011
7:50 pm
Saxby Chambliss is what Mark Levin would term a “corporatist”.
So we’re supposed to be enthused that America will go over the cliff to its death at 55 m.p.h. rather than 120 m.p.h. which is its current pace. Chambliss, you should be ashamed at yourself.
Just recently we heard about a profile in courage when Sgt. 1st Class Leroy Petry was awarded the Medal of Honor. Sgt. Petry picked up an enemy grenade and attempted to throw it away from himself and two colleagues and lost his hand in the process.
It’s too bad that Chambliss doesn’t display 1/14,000,000,000,000th of Sgt. Petry’s courage.
Next time I’ll vote for Chambliss’s Republican challenger and if Chambliss beats him I’ll vote for his Democrat opponent. The more liberal the better. And then we can have a REAL conservative senator from Georgia. Ditto Johnny boy.
Big Hat
July 19th, 2011
8:08 pm
The rich should have to pay taxes; God made them special.
Al
July 19th, 2011
8:13 pm
When did Saxby become a Democrat?
Fedup
July 19th, 2011
8:18 pm
Big Hat, I agree that everyone should pay taxes………What are you referring too? I know many well off individuals that pay more than double in taxes than most people make in a year
The Centrist
July 19th, 2011
8:21 pm
21% approve of the job the GOP controlled House is doing. It does not matter because the only poll that matters took place in November.
The Centrist
July 19th, 2011
8:28 pm
Clarence Chambliss has always been a conservative southern politician. Republican, RINO, or Democrat labels do not matter, but at least he never switched parties.
Fedup
July 19th, 2011
8:29 pm
Repubs or Dems, it just doesn”t matter. We need to start the commen sense party.
Fedup
July 19th, 2011
8:30 pm
Sorry, I meant COMMON SENSE, not Commen. I know some would let me know of my error!
The Centrist
July 19th, 2011
8:31 pm
Just think, if SFC Leroy Petry ran against Clarence, Petry would be labeled a coward. However, we can look forward to the backlash since Clarence decided, for the first time in history, not to be a total puppet.
The Centrist
July 19th, 2011
8:33 pm
Fedup. I’m going to let you in on a secret. There is only one “sense” in the south. Conservative.
WAW
July 19th, 2011
8:52 pm
The Gang of 6 have done what none in the House of Representatives have done – they sat down and talked. When the majority of the House of Representatives have signed a binding pledge, not to serve the United States of America but to follow the dictates of special interest (selling your soul to the Devil) – the Senate is the only hope for the continuation of our country. I will never vote for anyone who has taken a pledge against the interest of every citizen – “one nation under God”.
double
July 19th, 2011
9:05 pm
Fedup-dem and pugs all same.Earlier post called them evil,and lame.Don’t mean much what you call them, they are same.Ain’t no secret. Sense is common to both labels.Since they are same.If you own two horses in a two horse race. One wins one loses.You still got a winner.Suspect why called common horse sense.
wait a minute......
July 19th, 2011
9:10 pm
Is Saxby trying to tell me I can deduct mortgage interest from my lake house?
….. damn….
nomovote
July 19th, 2011
9:13 pm
The average commuter is spending $1,500 more a year on gas than just a few years back, and nothing is said. You dopes! You are so complacent to that, yet hear the word “tax” and you spaz.
I would rather shoulder a tax increase than allow big oil to arbitrarily gouge us year after year, reap billions in profits, and and remain untouchable.
Centrist
July 19th, 2011
9:15 pm
The Democratic party controlled Senate negotiating with Obama and the leftist media at this late date is pure posturing. Until/unless they negotiate a deal with the Republican House, there is not going to be a deal. Maybe we need the crisis like they had in Minnesota where the government shut down for 13 days before a deal was struck.
Crisis management and past the deadline deals is they way of life in the U.S. anymore.
smart dawg
July 19th, 2011
9:35 pm
Allowing Obama to raise the debt ceiling without congressional approval is pure stupidity. A raise in the debt ceiling will result in increased spending. It’s past time the imbeciles in DC need to listen to the public. WE’RE BROKE. WE CAN’T KEEP SPENDING.
What’s so hard about that?
Adjustments to social security…Hmmmm…those who have been forced to pay into it for years (decades) will likely be the same ones who are told that they don’t deserve to draw due to means testing. Penalize the hard working public, in favor of the ever growing moocher class. When you strangle the last dime out of the working producers (who finally throw up their hands in disgust as they join the moocher lines) then who is going to fund the moochers who have been brainwashed into believing “I deserve…” ???
brad
July 19th, 2011
9:36 pm
Let OBAMA raise the debt ceiling at HIS discretion? Not only is Saxby spineless he is a complete idiot or he thinks we are.
Cutty
July 19th, 2011
9:53 pm
Fiscal conservatives not wanting to pay their debts. 2001-2006 all over again.
smart dawg
July 19th, 2011
10:00 pm
Here’s another way to explain it, in the words of legendary blues guitarist Albert Collins: What you gon’ do when the welfare turn its’ back on you?
Songbird
July 19th, 2011
10:21 pm
Td, do some research on 401k and IRA withdrawals. They are taxed as ordinary income unless they were after tax contributions.