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
double
July 19th, 2011
10:23 pm
I don’t know what a hedge fund manager is guess like most americans. Headge may be like capital/capitol then would not know difference than. to default would be disgrace.pay just debts.
td
July 19th, 2011
10:27 pm
Songbird
July 19th, 2011
10:21 pm
You are correct but any money that is invested and turned around prior to getting the money out is considered a capital gain and is taxed at 15% if long term and 30% if it is a short term investment.
td
July 19th, 2011
10:31 pm
double
July 19th, 2011
10:23 pm
We are in agreement the debts of this country should be paid. The difference between us is you want to tax our way out of debt and I want to cut spending. Name a government program that once started has been ever been cut?
Rural Education
July 19th, 2011
10:46 pm
You “tea party” members just hold on. This trickle down theory is going to work one day.
td
July 19th, 2011
11:10 pm
Rural Education
July 19th, 2011
10:46 pm
And where is the proof that tax and spend works? We have never really attempted the model of cut taxes and cut spending. The libs always find ways to block the theory.
Dave
July 19th, 2011
11:12 pm
This “Gang of Six” plan “tax reform” reduces income taxes for the rich by 6% and puts it all on my back. Flattening and broadening the tax rates (both federal and state) is a big joke. Your elected official (Deal and or Chambliss) has someone’s back but it is not ours. The middle class is about to take it again.
yuzeyurbrane
July 19th, 2011
11:38 pm
These Teapeople are so ignorant. I can’t believe some of their rants against Saxby. I don’t like Saxby’s policies or 99% of his votes but it is at least based on reason. He is not a friend of the middle class of which I am still a member and supports policies that favor the “haves and the have-mores” otherwise known as his base as W once put it. But to rant against him because he even had the audacity to talk with Democrats about possible compromise?? I’m sorry but I am just shaking my head in disbelief.
double
July 19th, 2011
11:47 pm
TD how about the civilian conservation corps,could be a good time to have something similar rebuild infrastructure.Who says I want more taxes?You should stop making up things you don’t know.
smart dawg
July 19th, 2011
11:56 pm
Do you want economic recovery? Stability? Growth?
You’re not going to have any of the above as long as small business is strangled/frightened/threatened. Government jobs are NOT the answer.
Create an economic environment where small businesses can thrive. Replace the “For sale/ for rent/foreclosure signs with “Help wanted” signs.
Furthermore, get the federal government off of the backs (and out of the wallets) of small business.
I am a small busines person, not a tea partier. In business for 30 years and barely holing on.
smart dawg
July 19th, 2011
11:57 pm
Sorry for the typos, it’s late.
LizBeth
July 20th, 2011
12:28 am
Well, there go the only tax breaks we get.
Sunraynews | Top US news
July 20th, 2011
2:55 am
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The Centrist
July 20th, 2011
5:32 am
I know we have a lot of smart folks, so can someone tell me some of the trillions of specific dollars Obama has added to the annual deficit and debt? We know the stimulus package concept was approved under Bush, and Congress voted to allow Obama to spend the send half. How much of the war costs can be really attributed to Obama? Most of the costs for Obamacare have not kicked in, nor have the anticipated savings. The budget has been on cruise control for the past two years, and spending cuts have been the norm.
tail wind
July 20th, 2011
6:17 am
If Saxby has anything to do with it I would not trust it, because his mouth was moving, so sure he was not telling truth. Saxby needs to get with his Mexican friends and pick onions in Vidilia for a while and leave Washington.
legionaire
July 20th, 2011
6:38 am
Chambliss lost my upcoming vote when I saw him al buddy buddy with old serial woman abuser Kennedy during the secret “comprehnsive immigration ‘ bs meetings. He is selling out the middle class taxpayers with this agreement with Obama. Never ever believe a liberal of a RINO.
rickphillips77
July 20th, 2011
7:13 am
Over the life of a 30 year loan, a $300 per month decrease would equal over $100K in savings. Search the web for “123 Refinance” website they helped me find 3.118% rate easily. Strongly recommend them for anyone. Good luck.
E. Ruffin
July 20th, 2011
7:19 am
Typical Chambliss……………..I think I have voted for this RINO for the last time.
House just increased military spending
July 20th, 2011
8:17 am
Notice how one of the biggest expenditures by our government gets almost no mention by Chamlibss. We could cut military spending by 80% and we would still be spending more than the next biggest spender. But the House just increased spending on the military and Chambliss is talking about a minute reduction in spending.
This entire exercise is a fraud.
TSA on the way to second base
July 20th, 2011
8:30 am
seems Saxby has provided Obama a way out; cut a little spending; but any further cuts will be selected by some panel sometime in the furture
jconservative
July 20th, 2011
8:47 am
As always the devil is in the details, but I support a reduction of $3.7 trillion over a reduction of $1.95 trillion. My money says the House Tea Party bloc will only support the $1.95 trillion cuts.
td
July 20th, 2011
9:36 am
I still have not seen anything about what cuts are going to be made. Are they just going to cut the military?
findog
July 20th, 2011
9:45 am
td @ 11:10pm
“And where is the proof that tax and spend works? We have never really attempted the model of cut taxes and cut spending. The libs always find ways to block the theory.”
I thought you were an informed citizen. The GOP ran all three branches of government from 2001 to 2007; except for 18 months when one senator jumped ship to the democrats after the first W tax cut, so please explain how the dem’s blocked spending cuts. We expanded military spending for star wars and expensive hardware while not providing what the troops needed to fight two wars. Big farm bills, big transportation bills, big water bills, big everything: written, passed, and signed by republicans. I guess big bad Ted made them spend all that money, right?
Dick
July 20th, 2011
10:16 am
When the “Gang of Six” are done, the federal government will have so much of what I make, I will never be able to retire. I will lose the bulk of my 401K deduction, the mortgage interest and taxes on our retirement home, which is our current “second home”, and the charitable deductions we personally sacrifice to make. But, hey, at least, the top 1% of income earners will have their taxes “flattened” by six percent. So glad I could help!
Kyle
July 20th, 2011
10:25 am
I never thought he would turn out to be a RINO but he is. To pull something like that from this state isn’t that smart. I take it he will not be able to run again or will choose not to because I know I wouldn’t vote for him again and can’t imagine any real American that would.
double
July 20th, 2011
10:29 am
td was only an informed citizen when he had LMS to lead him.Anyone either branch,never 100% correct.Only an idiot thinks so.(not name calling)stating truth.Td thinks libs are causing the hot weather,knowing he has more hot air than,than, than,any lib.For td then,then,then.
td
July 20th, 2011
11:15 am
findog
July 20th, 2011
9:45 am
“so please explain how the dem’s blocked spending cuts”
As Sean and Rush has said many time during this period of time. “Republicans were nothing more then Democrat lite”. I am not defending their actions (especially spending on things like No child left behind and Medicare part D). These are the reasons for the rise of the tea party and the gains of the Dems from 2004 to their take over in 2008. Although I do remember a few things Bush wanted to do that was filibustered in the Senate by the Dems (Social Security reform).
Lets go back to the Clinton administration for a minute. I think Newt sent bills to the Senate to totally do away with the DOE and what happened?
political guru
July 20th, 2011
1:49 pm
zax, get out of bed with the idiot in the white house!!!!!!!!!!!!!!!
Kay Corly
July 20th, 2011
3:08 pm
Please cut the spending, cap the spending and balance, do what is right for our children, grand children and great grand children,KC
Kay Corly
July 20th, 2011
3:09 pm
Enter your comments here
The Centrist
July 20th, 2011
7:51 pm
Still haven’t heard what massive spending items can be directly attributed to Obama. David is like the rest of us. You have already lost way more of your 401K to corporate fraud and stock manipulations than you will ever lose from any tax deduction elimination. Americans shouldn’t us pay for our retirement living, just like some don’t want to help pay for public education? Part of the reason that Bush gave us the tax cuts was for us to give more to our favorite charities like Families First rather than letting the government decide for you and give to Planned Parenthood. But, hey, at least, the top 1% of income earners will have their taxes “flattened” by six percent. So, like you, I’m glad I could help!
Gang of Six: Can They Prevent Economic Chaos? » 99dzh
July 21st, 2011
12:04 pm
[...] Will House Republicans buy it? “I’m at least cautiously optimistic that we’ve got another idea on the table,” he told the Atlanta Journal Constitution. [...]
Poll Position: Does ‘Gang’ plan help or hurt Saxby? | Kyle Wingfield
July 22nd, 2011
5:05 am
[...] Georgia’s senior senator was front and center explaining the “Gang of Six” fiscal plan that was endorsed by President Obama and hailed by much of the press, even as it drew mixed reviews [...]
Commish
July 22nd, 2011
10:28 pm
Instead of the “Gang of Six”, why not the Three Stooges of the Republican party and the Three Stooges of the Democratic party.
Check out Shameless Chambliss’ website. Folks this clown is talking out of both sides of his mouth. He is not a conservative but a big spender.
Don’t forget about his idea to give ammnesty to illegal aliens.
Also, don’t forget he voted for the stimulus under Bush.
Georgia deserves more from its Senators than a circus clown with egg on his face.
The housing market helps drive the economy and he wants to reduce/eliminate tax cuts that help the middle class.
What about a pay cut Saxby?
Dave5
July 22nd, 2011
11:36 pm
There is an old expression Saxby…
Keep your mouth shout and be thought a fool….
Open your mouth and remove all doubt.
I’ll be at the front of the line supporting your competitor. You were right yesterday when you said you didn’t know how you stayed in Washington so long.
I am in Georgia and I so embarrassed for our state and what a waste of our potential.