You’ve heard about the “Gang of Six” proposal to cut spending and raise revenue to help solve the debt ceiling impasse. They say it would cut the deficit by more than 4 trillion dollars over the coming decade. But what are the details coming from the bipartisan group of U-S Senators?
Most of the savings would reportedly come from four years of caps on day-to-day budgets, federal health care programs, and curbing the growth of Social Security benefits.
The gang’s tax reform outline would set up three income tax rates … 8 to 12% … 14 to 22% … and 22 to 29% … to replace the current bottom rate of 10% and top rate of 35%. It would reduce but not eliminate tax breaks on mortgage interest,higher-cost health care plans, charitable deductions, retirement savings, and tax credits for families with children.
Individuals, organizations, and businesses benefiting from those tax breaks will be upset. But the revised income tax rates should ease the pain of federal fiscal responsibility.
Our thought for today is from John Cage:
“I can’t understand why people are frightened of new ideas. I’m frightened of the old ones.”