Bipartisan Senate 'Gang of Six' Reveals Deficit Reduction Plan - Details

The Senate's Gang of Six, consisting of three Democrats and three Republicans, revealed its national debt plan today. The plan seeks to cut spending by $3.7 trillion over the next decade and cause a net decrease in taxes of $1.5 trillion. For the details of the national debt plan, see below. For our analysis, see: Why The Gang of Six Proposal Has The Best Chance of Passing the House and Senate

Gang of Six Membership
Saxby Chambliss (R - Georgia)
Tom Coburn (R - Oklahoma)
Kent Conrad (D - North Dakota)
Mike Crapo (R - Idaho)
Dick Durbin (D - Illinois)
Mark Warner (D - Virginia)

Bill 1
- $500 billion worth of cuts
- a new consumer price index (CPI) to calculate cost-of-living adjustment (COLA) for Social Security
- impose statutory spending caps through 2015
- freeze congressional pay
- sell unused federal proprty

Bill 2
Create fast track process for a comprehensive to restructure tax and spending programs

Separate track for considering Social Security on floor

Committees must report bills within the next 6 months with deficit savings in entitlement programs over the next ten years

Taxes
- The Finance Committee would deliver real deficit savings by simplifying the tax code and raise as much as $1 trillion.

- Establish three tax brackets with rates of 8-12 percent, 14-22, 23-29.

- Permanently repeal $1.7 trillion Alternative Minimum Tax.

- Establish a single corporate tax rate between 23 and 29 percent.

- Move to a competitive territorial tax system.