Tough Tax Talk in Washington
'Gang of Six' wants cap on all categories of government spending.
Compiled by staff
Published: Feb 24, 2011
A group of influential senators from both parties is developing a framework that calls for higher taxes and caps on all categories of government spending. People with knowledge of the talks said the senators hope to unveil their plan soon after the weeklong President's Day recess so they can begin assessing the breadth of political support. The group, known informally as the "Gang of Six," is made up of Senators Kent Conrad, D-N.D., Richard Durbin, R-Ind., Tom Coburn, R-Okla., Mike Crapo, R-Idaho, Mark Warner, D-Va., and Saxby Chambliss, R-Ga.
That group hopes to advance a Presidential commission's recommendations, which would reduce deficits by $4 trillion over the next decade. On taxes, for example, the legislation would direct tax-writing committees in the House and Senate to develop a tax overhaul that raises hundreds of billions of dollars in additional revenue while lowering the top tax rate. If a tax overhaul cannot be accomplished by a 2013 deadline, then a new tax regime would automatically go into effect, raising taxes across the board by reducing the value of various tax breaks.
The proposed legislation also calls for explicit annual caps on discretionary and mandatory spending. If Congress failed to meet them, the caps would be enforced by sequestration, which requires the White House budget office to cut across the board until the targets are met.
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