So what will happen if the Dems & Repubs on the committee don't agree on something?
they must cut $1.2TRILLION over the next 10 years
$600 BILLION will be cut from the Pentagon
Toomey's proposed compromise:
• cuts deficit $1.2 Trillion
• $700 Billion in spending cuts
• $500 Billion in revenue increases (I.e. Tax increases)
Revenue increases broken down
~ $250 Billion limiting deductions especially for top earners
~ Tax Rates Lowered (top rate drops from 35% to 28%)
Contingent on pro-growths tax reform
Only 13 months away from big tax increase in history (when Bush tax cuts expire)
Other Option :
• Cut deficit by $2.3 Trillion over next 10 years
• raise revenue by $1 trillion (I.e. Tax increases
• cut spending by $1 Trillion
• save $300 billion in interest on debt (how they gonna do that? sift it to a new "credit card"?)
where are the spending cuts coming from
• monies saved by winding down Military action in Iraq/Afghanistan (wait - weren't those gonna be cut anyhow? That's like saying "we're saving $2trillion by not attacking Canada - there we saved $2trillion")
HOWEVER - these same funds are then spent anyhow only in a different location/department ... So really we save nothing
I'm betting that they will come up with some sort of compromise at the eleventh hour so everyone gets their extra paycheck for being on the Super Committee ... You know if DC would charge these people for being on these committees instead of paying them, I'm betting we'd see a lot less committees out there
So a few quotes and answers (both from me and commentators)
" ... How do you define the closing of a loop hole as a tax increase is beyond me ... "
Rep. James Clayburn, D-SC
Chris Matthewsr pointed out that if you no longer receive only 2/3 the tax break you did the year before on your mortgage deduction THAT is a tax increase ... The congressman just didn't get it.
Now he did mention the upper 1% who have had a 275% income increase over the last 28years ... That they should bring themselves down to where everyone else is ... do you remember what the economic situation was 28 years ago?
My gods - the US was in the midst of INFLATION ... They had to put a price cap on milk so kids could still drink it, gas was rationed because of the middle east crisis caused a shortage, unemployment was - ok not as bad as now - very high, drug use was running rampant ...
What is this guy thinking?
Both have their pros & cons ... Toomey's plan limits deductions per person, but lowers the tax rate (giving an overall cut even though it raises the number of taxes paid - no word on what loopholes would be cut)
The Other plan wants to take the economy back 28 yrs and just rearranges spending while raising tax rates/closing loopholes used by everyone.
Well with wither one -- we're screwed