The media frenzy over Republican Senators and Barack Obama making nice over the debt ceiling crisis exposes for all Americans to see the extent to which both parties are aligned with Wall Street interests, and against the interests of Main Street and small business. The subject of this latest bipartisan love fest is the Gang of Six plan.
Americans want reform. The Republican majority in the House of Representatives was swept into office by promising reform. The Gang of Six solution is the antithesis of reform.
Supposedly it offers the “balanced approach” of which Obama rambles on about endlessly. But in reality, the Gang of Six is one-sided. It offers only vague language about spending cuts. At best the Gang of Six plan might cut $500 billion, and even these cuts cannot be guaranteed. In real terms, government would continue to grow.
Also the Gang of Six solution would dramatically increase taxes. It calls upon the Senate Finance Committee to craft a tax reform plan that would actually increase taxes by $2.3 trillion over a 10 year period. Some members even cynically call it a tax reduction by using a baseline that everyone knows is phony. This is a baseline that predicts all of the middle class tax cuts signed into law by President Bush was repealed.
All of this because rejecting the debt ceiling increase would require the U.S. government to right size itself and begin a pay as you go diet.
Read More at Floyd Reports by Floyd and Mary Beth Brown, Floyd Reports