The Congressional Budget Office will score the plan as a $1.5 trillion tax cut, as it lowers the corporate tax rate from 35 percent to between 23 and 29 percent, eliminates the alternative minimum tax, and lowers personal income tax rates. But by closing loopholes, the Gang of Six says they’ll raise $1.3 trillion in revenue.
The disparity can only be explained because they employ an accounting gimmick — the two projections use different CBO baselines. The tax cut number is compared to current law, which assumes the Bush tax cuts will expire and the AMT will take effect, neither of which seems likely to happen. The revenue number is compared to a “plausible baseline” (which assumes expiration of the high-end Bush tax cuts).
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It proposes a chained CPI adjustment to Social Security, which may not be a bad idea when combined with other measures to boost benefits and strengthen the program, but on its own is tantamount to a $1,300 cut each year for recipients over their lifetimes.
Think Progress: Gang Of Six Plan Reduces Social Security Benefits By $1,300 A Year, Cuts Corporate Tax Rates
In a diary earlier today I said:
The Gang of Six's plan to reduce taxes on the wealthy, a plan that cuts programs in order to LOWER tax rates on the wealthy, is the latest shot at working people in the class war.
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The Gang of Six Plan turns its back on the poor, the needy, the elderly, the young and middle class that is suffering in this Great Recession. The hungry children and the old who have little will suffer. The cuts likely will cost a million jobs over the next three years, jobs we cannot afford to lose when so many are without work.
WE must say: This Plan will not pass. It is an immoral abomination. WE will do whatever it takes to defeat it.
The Promise of America Vs. The Gang Of Six
Republicans love the deal:
It looks like other Rs will kill the deal, but we must pressure Dems to reject this attack on Americans. This is the Bush tax cuts on steroids.
Say NO!