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Ear to the Ground

Obama Backs ‘Gang of Six’ Debt Plan

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Posted on Jul 19, 2011
Flickr / Senator Mark Warner (CC-BY)

Sens. Saxby Chambliss, left, and Mark Warner are the lead authors of a deficit-reduction plan drafted by the “Gang of Six.”

President Obama announced his support Tuesday for a deficit-reduction plan drafted by a bipartisan Senate group known as the “Gang of Six.” The lawmakers’ proposal promises to reduce the deficit by $3.7 trillion.

The plan, once thought to be too ambitious and too vague to consider seriously, proposes cutting spending, overhauling entitlement programs such as Medicare, revising the tax code and revisiting Social Security.

Democratic Sen. Mark Warner and Republican Sen. Saxby Chambliss, the lead authors of the plan, said they were surprised by the level of support they received from members of both parties. And with the debt-ceiling deadline looming just two weeks out, the plan may be Washington’s best opportunity for compromise. —BF

The Wall Street Journal:

Mr. Obama said the proposal, which was designed by a group of lawmakers known as the “Gang of Six,” represents a balanced approach to cutting the deficit that he has pushed for all along.

The proposal would cut spending, overhaul entitlement programs such as Medicare, rework the tax code, and make significant changes to Social Security. He said he still hadn’t read all the details of the plan, and said it will be difficult for all parties to reach agreement.

The plan is sweeping in its scope but was thought for months to be both overly ambitious and slightly ambiguous, which nearly led the effort to collapse in recent weeks. But the plan was revived, in part by its lead authors—Sens. Mark Warner (D., Va.) and Saxby Chambliss (R., Ga.)—and the flood of bipartisan support coming out of the meeting surprised them both, the lawmakers said.

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By Lew Ciefer, July 20, 2011 at 1:48 pm Link to this comment

The ‘debt ceiling’ is a façade for what is really going on behind it people. There’s never been any doubt about the debt ceiling being raised. It’s theatre. It’s been raised 78 times since 1962.

The Party (both sides of the coin) is planning on raising the rate of extortion on workers’ wages for the benefit of its corporate masters, themselves, and the dependent class. Regardless of the rhetoric—which will be taxes raised on the rich and corporations—the true end result will be higher extortion rates on working men’s labor (neo-slavery). You can bet your children’s future on the fact that whatever legislation is passed the American working class—be they democrat or republican—will be worse off and the vermin in government and their Homasters will be further enriched. The dependent class will—contrary to what they mistakenly believe—receive less for more also. 

They don’t care about you! You are nothing more than a means to an end and if they could figure out a way to survive without you they would serve you up for dinner faster than Obuma can stand before a camera and lie.

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By Gmonst, July 20, 2011 at 9:53 am Link to this comment

According to democracynow.org  this plan will eliminate the tax deduction for home mortgage interest paid, and deductions for employer provided health benefits.  It would also lower the corporate and highest income tax bracket from 35 to 29%

We are plain and simple bought and paid for by the wealthy of this nation.  Another artificial crisis leads to another tightening of the screws on the people of this country that actually have to worry about money so we can give more to those who don’t ever have to worry about it.  That isn’t a political philosophy, its theft and extortion.  Sickening really sickening.  We have slipped over the edge down the slippery slope, and I don’t think we will soon get out.  Fascism USA has arrived people.

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By Shenonymous, July 20, 2011 at 4:38 am Link to this comment

There is no redeeming value to what Obama has acquiesced. 
Always giving him the benefit of the doubt, as he was the only
guard against the Republican onslaught against the American
people, I am beyond disgust.  I never thought I would ever think
this, but the Deep Blue Democrats need to draft a challenger, such
as Howard Dean or Bernie Sanders, or a ticket with both on it to put
someone in that Office who will stand resolute.  We know it takes
compromise to run a country.  We know the job is not easy.  But we
also know the person in that Office must represent the American
people in all matters and not barter away their protections against the
wealthy and corporate powerhouses.  The 1%ers must be stopped.  We
are the only ones who can stop them.  We have to help wherever we can
and however we can to get legislators elected at the local level who will
represent the people and kick the butts of the 1%ers.

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By Inherit The Wind, July 19, 2011 at 7:36 pm Link to this comment

You just KNEW he was going to roll over yet again.  You just HAD to know it!  He had the power in his hand to finally crush this cancerous evil movement that’s swallowed one party and is starting to swallow parts of the other (I’m talking to YOU, Heath Shuler, sell-out!)

All the President had to do was say “OK. I’m going to give the people what they want. Since we have to stop paying people their Social Security, their Medicare, their Court system salaries, etc. I’ll FIRST stop the payments in the Congressional districts whose representatives express that desire to stop payments.  I’ll begin by stopping all payments in the First Wisconsin District, represented by Cong. Paul Ryan.  Then I’ll stop all payments in Virginia’s Seventh district, represented by Cong. Eric Cantor.  I will continue to honor the desires of such Congressmen and Women by shutting off funding to up to 234 districts out of 435. That should be enough to balance the budget and even generate a surplus.  The only agency I will continue to allow to be funded in these districts is..The IRS. Good evening.”

We can only dream….It would CRUSH the TeaParty like an egg under a donkey’s hoof, show America what they really want…and give it to them.

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By kerryrose, July 19, 2011 at 6:29 pm Link to this comment

Cutting Medicare, cutting spending…. nothing about whether or not it raised taxes on corporate jets.  Obama swore to Cantor that he would veto any plan that did not raise revenues.

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By Dr Bones, July 19, 2011 at 4:18 pm Link to this comment
(Unregistered commenter)

Shame

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By A. Haque, July 19, 2011 at 1:58 pm Link to this comment
(Unregistered commenter)

US Debt Ceiling - Just to Defeat Obama in 2012, will the Republicans sink the US Economy?
The Republican Congressmen and Senators are playing an extremely dangerous game with their nation’s finances. In their desire to defeat Barack Obama in 2012, they are pushing the issue of National Debt Ceiling to the brink.

If Congress does not approve an increase in country’s debt ceiling by August 2,2011, United States Government will default on its debt obligations at the rate of $4 billion a day. The will result in lowering of US credit rating from AAA and no one will be willing to lend money to US Government unless there is a substantial increase in interest rates.

The interest rate hike will hit the already weak economy hard, pushing unemployment to double digits, the housing market will suffer a down turn like it has never been seen before. Already some 29 million homes are under water i.e. their mortgages are higher than market values, increase in mortgage defaults will bankrupt many US banks and unlike 2008, Uncle Sam will not be able to save them this time as Uncle Sam will itself be bankrupt.

Are the Republicans really this desperate to defeat Obama that they will sink the entire US ship? Many think they are playing brinkmanship and will come good at the last minute to avoid default. I hope they are right, because otherwise they have to be extremely despondent to do this to their own country.

The US default will also impact the World economy. The already suffering European economies of Greece, Ireland, Portugal and others will sink even further, resulting in a possible breakup of EU or the Euro as a single EU currency.

And why are Republicans not willing to increase the debt ceiling even once in Obama’s three years, when they raised it no less than seven times in Bush’s eight years? Apparently they want more tax cuts for the wealthy and oppose closing tax loopholes for big Corporations. They want to eliminate Medicare and cut Social Security for the poor. The American public knows well that the high debt is a Republican legacy from George Bush’s ill planned wars and tax cuts cuts for the rich.

If a default occurs, Obama will probably take the high road and heap entire blame on Republicans and rather than winning the White House in 2012, Republicans could end up losing majority in the House and many Senate seats too.

In case of default, US voters have only themselves to blame for giving Republicans and Tea Party candidates a majority in the The House in 2010 despite George Bush’s disastrous eight year Presidency.

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