Gang of Pain: Who Suffers Under the Bipartisan Deficit Reduction Scheme

[xchrom]

http://www.thenation.com/blog/162193/who-will-suffer-under-gang-six-plan

President Obama endorsed the Senate's Gang of Six deficit reduction plan Tuesday, saying that the proposal “is broadly consistent with the approach that I’ve urged” and “makes sure that nobody is disproportionately hurt from us making progress on the debt and deficits.”

However, an examination of the plan’s specifics reveals that corporations and wealthy Americans won’t feel much pain at all—in many cases, just the opposite. The plan slashes taxes and could bring the top personal income rate down as low as 23 percent—meaning CEOs like Jamie Dimon and Lloyd Blankfein could see their after-tax income increase by as much as $3 million, according to Dean Baker, co-director of the Center for Economic and Policy Research. The corporate tax rate would be reduced from 35 percent to between 23 and 29 percent under the proposal. (Supposedly enough loopholes would be closed to keep total revenue from corporate taxes the same. Even in that scenario, corporations won’t pay an extra penny). Military spending also remains virtually untouched.

Meanwhile, the harm done to seniors, students, working families and others under the Gang of Six plan is unmistakable. Social Security benefits would be reduced, and there are also cuts to Medicare and Medicaid. Students and the disabled would lose some federal government support. Here’s a quick look at who would be most harmed under the new most popular proposal in Washington.

Seniors: Americans over age 65 get hit from several directions under the Gang of Six proposal. First, the plan reduces Social Security benefits by 0.3 percentage points per year by tinkering with the formula that adjusts benefits based on inflation. This could lead to annual reductions of over $1,300 for some seniors. Social Security is solvent through 2037 and does not contribute to the deficit, so this change is particularly misguided.

[Divernan]

1. Further reducing income taxes on the wealthiest? That's our O!

He's the toast of every country club in the country!

I feel so guilty - like I should go back to every one of the hundreds of houses where I went door to door, urging working class people to get out and vote for Obama.

[GillesDeleuze]

2. but they still wont let him in or vote for him

he gets his votes from the seniors and middle class hes destroying

[Doctor_J]

3. Sanders says the one Obama & Boner are cooking up is worse

so if the Gang Bang Of 6 gets passed, you should actually celebrate!

[roxiejules]

4. Sanders also said there were further cuts to Education

in the Gang of Six plan. Why does the President think this plan is 'balanced'??