The new Gang of Six proposal brewing in the Senate is a total sellout which promises to usher in a vast new round of new taxes. Not just closing of loopholes, but real live taxes we will all have to pay.
The proposal is based on the recommendations of the Bowles-Simpson Deficit Reduction Commission as modified by the “Gang of Six” US Senators. It plans to raise $1 trillion in new tax revenues. While the gang is vague on the details of the new taxes, the Bowles-Simpson Commission was quite clear – it proposes the virtual elimination of all tax deductions, certainly for taxpayers with joint incomes of over $200,000 and possibly for everyone. The revenues it would generate from eliminating or sharply curtailing the mortgage interest, charitable, and state and local tax deductions are set to generate $1 trillion of new revenues over ten years and to finance a vague and unspecified hoped for cut in the top tax bracket.