In the history of mankind, many republics have risen, have flourished for a less or greater time, and then have fallen because their citizens lost the power of governing themselves and thereby of governing their state. TR


Gang of Six Proposal Would Increase Taxes by $2.3 trillion

An analysis by former Bush National Economic Council Director Keith Hennessey of the bipartisan Senate “Gang of Six” proposal finds that the plan would raise taxes by $2.3 trillion over ten years.

The proposal is one of the main deficit reduction strategies being considered as Obama and Republicans try to reach some kind of a deal in time to raise the debt ceiling before it is breached Aug. 2.

Sure, Hennessey is biased, though he’s a straight shooter and you’ll notice his analysis is clinical and non-strident. But you don’t have to trust Hennessey. Trust yourself, because the math is very straightforward.

Hennessey notes that according to CBO, current tax law – which includes the scheduled expiration of the Bush tax cuts and the application of the alternative minimum tax to more and more taxpayers – will cause taxes to increase by $3.8 trillion over ten years.

The authors of the Gang of Six Plan themselves state that CBO would score the plan as reducing taxes by $1.5 trillion. “If CBO scored this plan, it would find net tax relief of approximately $1.5 trillion,” the Gang states.

According to Hennessey, this is a carefully worded phrase, because CBO scores relative to current law.

So, subtract the $1.5 trillion reduction from $3.8 trillion – the tax increase scheduled under current law – and you get $2.3 trillion in tax increases still set to go in effect over ten years under current law if the Gang’s plan is passed.

It’s not complicated. Forget which provisions stay or which go – whether some of the Bush tax cuts remain or if the rate brackets get altered. THIS IS THE BOTTOM LINE: $2.3 trillion in new taxes, however you slice it.

Earlier this week, I projected the Gang of Six plan would increase taxes by $2 trillion over ten years. But I was only using the sunsetting of the Bush tax cuts and the growing AMT in my calculation, which totals about $3.5 trillion in tax increases set under current law. The CBO figure of $3.8 trillion includes all of the tax increases that will occur if current law is not changed.

The Gang of Six are Sens. Richard Durbin (D-Ill.); Mark Warner (D-Va.); Kent Conrad (D-N.D.); Saxby Chambliss (R-Ga.); Mike Crapo (R-Idaho); and Tom Coburn (R-Okla.).

77 thoughts on “Gang of Six Proposal Would Increase Taxes by $2.3 trillion”

  1. So, this calls to question Sen Tom Coburn’s budget hawkishness, or his intelligence, or his honesty. Had high hopes for him. Looks like he and virtually every other elected official in Washington is bridled to expediency and not conviction, OR they are all just being played because they are gullible and/or stupid.

  2. The attack on the middle class continues. Let’s eliminate mortgage loan deductions to furhter penalize the responsible people who bought a house they could afford to stay in. Oh, and while we’re at it, let’s take away the medicare benefits they have been paying for during the last 30 years. They won’t mind having their senior health care destroyed to pay off corrupt politicians, wall street bankers and rich Arab investors.

    They are just stupid sheep we can shear over and over and over.

      1. Well this is nothing more than a full-on frontal assault on the middle class. Lock and load or roll over and take it. I wish I saw a viable third choice, but too many Americans are apathetic, lazy, or so stupid that they do not or cannot see what is coming down the road.

  3. Osama Obama Biden Bin Laden
    One coincidence? Two coincidences?

    A military Coup took place with the introduction of Sarah Palin as John McCain’s running mate.

    Obama is not the president, he’s the acting president. He disappeared for 2 weeks after his election win only to reappear looking exhausted sitting next to John McCain, with a bad poker face, for a press photo shoot. He has been turned into a Pentagon puppet ever since.

    What you’re about to learn is true and not embellished in anyway. Here’s what Obama, Osama, Biden, Bin Laden, the FBI’s Most Wanted Terrorists, and Sarah Palin have to do with the last election and the military’s overthrow of our government.

  4. The folks who agree to an increase in taxes of $2.3 trillion should be voted out of office.

    Cut the spending !!!!

    If we borrow 40 cents of every dollar we spend, then cut all discretionary spending by 40% throughout each line of the budget, and reform the entitlements.

    That would be ‘shared sacrifice’.

    I do not trust anyone who proposes we keep spending. It is going to collapse our economic system.

    If it collapses, I believe those who supported this spending will need to go into hiding.

  5. Are all the gang of 6 retarded or just completely ignorant of economics, finance, and how deep in financial doo-doo the liberal Tax-n-Spend politicians have got us. When you SPENT TOO MUCH on BLOATED BS, Owe-bamacare, TARPs, and all the bailouts/UNION THUG payouts this is how it ends.
    Reid and his liberal morons in the senate seem too stupid to connect the taxes to their being less money to invest in Jobs, Homes, or increasing the business. If we waste our hard earned money on taxes, only the losers will benefit.

  6. Senate “Gang of Six” proposal finds that the plan would raise taxes by $2.3 trillion over ten years.

    who are in the Gang of Six?
    they must be voted OUT of congress next election…… they are trying to HIDE their tax increases from THE PEOPLE.

    1. The Gang of Six are Sens. Richard Durbin (D-Ill.); Mark Warner (D-Va.); Kent Conrad (D-N.D.); Saxby Chambliss (R-Ga.); Mike Crapo (R-Idaho); and Tom Coburn (R-Okla.).

      It says it right in the article. Read before you comment. Thanks.

  7. Wow, some real tough negotiators, that gang of 6 establishment Republicans out to damage the Tea Party even if it means Barack Obama’s re-election. These six will be targeted for defeat for this insult to America and for cavorting with Marxists.

  8. Gang of Six LIE. below are the names of The Gang of Six but they LIED. They don’t say their PLAN raises Taxes by $2T.
    THESE MEN FROM Gang of Six from Wikipedia.

    Mark Warner (Virginia)
    Dick Durbin (Illinois)
    Kent Conrad (North Dakota)
    Saxby Chambliss (Georgia)
    Mike Crapo (Idaho)
    Tom Coburn (Oklahoma), left the Gang of Six[5] and later returned[6]
    In July 2011, the Gang of Six proposed a solution to the US debt ceiling crisis. The compromise would cut the deficit by USD $3.7 trillion over ten years and was praised by President Obama.[7] [8]
    [compromise is a LIE – vote them OUT]

  9. Nothing constructive will happen until bought-and-paid-for, corrupt to the core, Senators like Reid are run out of town. That corrupt old fool is every bit as damaging to the country as the man-child President.


    It’s becoming time we took over our own government. These Democrat tyrant communists have got to go, the whole crowd of them. ENOUGH! My country is more important than 250 Democrat hacks, including the A-Hole in the White House! IT’S TIME TO DEMAND FISCAL AND CONSTITUTIONAL COMPLIANCE!


    1. You are EXACTLY correct.

      And for saying so, the mighty Boa was banned from posting at REALCLEARPOLITICS. So don’t be fooled. They allow marxists to spew all they want but will not allow people to state how critical this problem is and what REALLY needs to be done to have any chance at all to correct it. And it needs to be numbers so high, there is now way to stop it. These scoundrels in DC are DESTRoYING our nation, and oppressing US FAR WORSE than ANYTHING King George EVER did. Our Founders had courage but sadly, it is no longer a common trait.

      1. I’m in!

        You know, if they use this “crisis” as a scare tactic to strong-arm in some new taxes, perhaps we should all band together and boycott April 15, 2012 tax day. We just won’t pay!

        Or we can send in “I owe you’s” instead that we plan to settle “at some date within the next 10 years” – kind of like the “cuts” they’ll work out within 10 years.

  11. I would gladly pay you tomorrow for a hamburger today. It was funny on Popeye decades ago it is not funny today. Eliminate the Dept of Energy it doesn’t do its mission and has spent trillions not doing it. Eliminate the Dept of Education our children cannot get any dumber.
    Eliminate the Dept of the Interior they are a left wing radical organization run by Disney characters. Eliminate any other government organizations that don’t do their job. Stop being children and look at the facts the government doesn’t fix anything.

  12. Coburn’s true colors have come out with his participation in this shameful plan.Since he is not running for re-election he should feel totally free to vote on pure principle.Guess he favors a socialistic redistribution of wealth,and a job killing tax burden.Nice principles RINO!

  13. I have a basic gripe with “deal making”. These politicians – ALL of them – are supposed to be employee’s of the citizens of the USA. That means they are supposed to do what they are told to do, not the other way round. If they don’t, they ought to be fired.

    1. Unfortunately, that was in the days when they worked for us. There has been a bit of a conversion. They now rule us, rather than work for us. It is up to the people to determine whether or not this is acceptable. Judging by the lack of action against things like this, the TSA, “flash mobs”, O’Bozo’s actions including converting the military into a homosexual country club, etc, it appears the people have spoken and are quite satisfied.

      Our Founders would be truly ashamed.

  14. No doubt a gang of 12 would increase taxes $4.6 trillion.

    The federal government; namely Congress, the Executive Branch, and the Judicary [and particularily the John Edwards lawyers] make the Mafia appear to be among the most honest citizens in the U. D. At least with the Mafia you know where you stand. You don’t have to hurry up and pass it so you can find out what is in it. You know what is in it. It is called transparency.

  15. Mr. Paulien Guillott Jr.

    The “Gang of Six” appears to be more of a “Game of Six”. Their plan has about as much substance as cotton candy in a rain storm.

  16. Break out the Vaseline. The GOP held all the cards but threw in weeks ago. When they started talking about “temporary” increases in the debt limit, it was already over.

    These clowns are bailing out O’Bozo from the literal brink of total disaster. To do so, they are breaking their OWN campaign pledges. Remember when the marxists were falling on the sword to save O’Bozo? All sacrificing their own careers in order to give O’Bozo his “crowning achievement”? This is every bit the same thing, but THESE guys aren’t part of HIS party. Or at least aren’t supposed to be. They know that the cuts that REALLY need to be made are the free hand-outs and that to cut them will cause a race war for which the marxists and media will blame them for. THAT is why they have caved.

  17. Uh oh. The Drudge link is bringing them in.

    Keith, you know you’re doing something right when the biggest news linker in the world turns you into a regular.

  18. This figures!!! Leave it to those old tired GOP idiots to try this stunt! There are no tax cuts in this garbage; only reductions in the rate of increase. Same old same old. Get ready for more challenges during the primaries…we will NOT stand for this anymore. We’ll challenge every last RINO until they’re gone!!!

  19. No Congress can legislate what Congress will spend next year, mush less so what Congress will spend over the next ten years. You’re a fool for buying into this. Over the past 30 years we’ve had countless “budgets” that projected “surpluses” within 5 or 10 years. And look where we are now.

    1. The GOP will cave. The mighty Boa has made clear as to why. Then the marxists will grab the money and run. Where to? The courts and the media. They will go on a campaign, calling any “cuts” as being “unfair to the poor”, racist, against “old people”, etc. In the end there will be no cuts, unless there are cuts to the military. This is EXACTLY what they dud to Reagan. Apparently the GOP just never, ever learns. You can NOT compromise with people who are bent on destruction. In this case, of course, the target is our nation.

      Say Keith, by the way. The mighty Boa would like to salute you on a fine blog and for reporting honestly. Not many have the courage to do so any longer.

  20. What does a trillion look like?
    Since we have been off the Gold Standard for 40 years why are we referring to this trillion as $$$? It’s just numbers that Obama creates in his pie hole. Aug 2 is just another day. So what.

  21. The plan proposed by the Gang of six, is just another scam—–raised taxes with the promise of reducing spending down the road—-this is absolute madess—-the great imposter and Reid both have grave mental issues!!!!!!

  22. Well, seeing as how we’ve got a 14.5 trillion dollar debt to take care of, 2.3 trillion over 10 years doesn’t seem that bad.

  23. Let’s get one thing straight – Tax INCREASES in any way, shape or form are NOT necessarily “revenue increases” they could in fact have the opposite effect.

    There is a really EASY way to raise more tax revenue. It is so easy and obvious that I am really surprised that not one of the over-paid and over-benefited geniuses in DC has suggested it:

    Convert tax-CONSUMING, welfare/unemployment/subsidy-receiving people across the country into tax-PAYING, wealth-creating, PRIVATE-sector wage-earners.

    In short: CREATE JOBS on Main St.

    One other thing, If they do raise taxes on the wealthy, do you think for a MOMENT that the super-rich leftist politicians and their even wealthier backers will pay one penny more? Not a chance!

    The Kerrys, Kennedys, Pelosis, Buffets, Soroses, etc all have “friends in all the right places” and know how to game the system. Just like they do now. Just like Google that paid only TWO-POINT-FOUR percent on their billions, just like GM that paid ZERO percent (remember they were the guys that used expensive private jets to come to a meeting to beg for government money), just like John Kerry who moved his multi-million dollar yacht to avoid paying taxes, just like Dem. Sen. Claire McCaskill who registered her plane in Delaware instead of her home state of Missouri to avoid paying taxes.

    No, it will be the moderately wealthy small-to-medium-sized-business owners, you know, the people who actually employ most of us, who will pay…

    Remember too just how sneaky and dishonest politicians can be. Regan was PROMISED $3 in cuts for every $1 in tax hikes – the tax hikes HAPPENED of course, but the promised cuts somehow just never materialized…

    In fact as we all know, spending just carried on increasing.

    We need to put a REAL stop to this irresponsibility. NOW!

    Money is to the economy as blood is to a living person. We can lose a certain amount of blood, even donate some willingly, but we get to the point where any more taken, no matter where from, will hurt the entire body.

    Government should exist in a SYMBIOTIC relationship to the private economy, not a PARASITIC one.

    As you know symbiotes live in mutual benefit with their host.

    Parasites kill theirs.

    1. If it was that the cuts “never materialized” it might not be so bad. The reality is that the marxists intentionally work to AVOID the cuts. As the mighty Boa said, whether they take it into court claiming the cuts to be “unfair” to the usual groups, or campaign in the media that the GOP is trying to “starve Grandma”, they manage to get the cuts dismissed. You can BET that they are ALREADY hard at work to undo any “cuts” that get passed in any “compromise”. This is why THE BEST route for the GOP was to let the debt limit stay where it is and FORCE default cuts. But they chose to cave instead.

      1. Absolutely and don’t forget that all too often what they try to pass off as cuts are merely reductions in future spending increases.

        So if a certain government department’s budget was say $100 million for last year and they’d LIKE to spend $115 million next year, they say that they will “cut $5 million off that projection and try to tell you that they are saving money when in reality, they still plan to spend $10 million MORE next year.

        Multiply that kind of slimy trick by the bigger numbers that most government entities work with and the many HUNDREDS of such departments (many totally unnecessary) and you can see how we “lose” BILLIONS if not TRILLIONS of our OWN hard-earned money, taken by force by the government in the form of taxes, direct and indirect and THROWN AWAY.

  24. I put 20% down on a house that was within my means.
    I show up early every day and put in a full day’s work.
    I paid attention in school, resulting in a 4.0 GPA. Paid for it myself.
    I never committed a crime, or deprived my fellow man of anything. Ever.

    So why the hell am I to be punished for the nonfeasance of others? What the hell have I done to deserve this? Why should I give one squirt of warm urine for the demands of politicians or fellow citizens that I somehow do more?

    F you all.

    1. I am with you 100%

      Can you imagine what the situation would have been had Obama & Co instead of pouring OUR billions into the rich financiers, bankers and other thieves used tax money to cut one full percentage point off every mortgage in GOOD STANDING on a PRIMARY residence owned by a taxpayer and maybe doubled or tripled, the “renter’s credit tax deduction.

      Each homeowner/renter would then have had anything from $100 to several hundred dollars extra each month. That money would have gone straight back into commerce. It would have resulted in a huge injection of liquidity, increase in retail sales, retail jobs and tax receipts from those employees’ income tax as well as sales taxes.

      But no, they gave the money to the big banks who just laundered it through the Treasury making billions on the “spread” and doing NOTHING to turn the economy around.

  25. I can’t believe I have to explain this. If the AMT and Bush tax bracket is allowed to sunset, then taxes will increase $3.8 Trillion. With this plan, the AMT is eliminated and the top rate of 36% goes to 29%(instead of rising to 39.6%). Thats a tax savings of $1.5 Trillion from today’s starting point. So the real tax savings is even more from what it will be. Oh, and the corporate rate also drops from 36% to 29%. Making it more competitive with the rest of the world and allowing $5 Trillion of cash to be brought back into this country for investment. Very disingenuous headline and post.

  26. Taxes should not be raises. The fat cat politans should take the tax increase threw pay decreases. Money is not the issue its called miss management of money.

  27. Steps to recover America:

    1) declare 1913 Federal Reserve Act unlawful
    2) arrest all members of Federal Reserve Corporation
    3) declare all World Trade Organization treatise null and void
    4) return to Constitutional money issued by Congress under Art. I Section 8 of the US Constitution
    5) replace Federal Reserve Notes in circulation with United States Notes, one-for-one, for all citizens of the United States of America
    6) treat all “creation” of money, whether by fractional reserve banking, digital “loans,” stocks, bonds, and anything other than Constitutional money as counterfeiting
    7) provide favoritism for Americans employing Americans in America
    8) all foreign trade agreements shall be reciprocal on each foreign nation
    9) immediately return ALL military to the USA mainland and secure the country
    10) prepare for WWIII, because foreign nations where the God-less, home-less, nation-less, international bankers still control the government will militarily attack us.


  28. It’s likely the leader of the “Gang” is the thug from Chicago, IL, Senator Dick Durbin. One thing we know about Chicago gangs is that when you run into them…you are probably going to be mugged.

  29. Well, since the overwhelming majority of Americans DO NOT want these tax increases, wouldn’t the House and Senate voting for them constitute taxation without representation ? And the thieving Democrats like to insult and make derisive comments about the so called Tea Party movement.
    Voters will take revenge at the polls, and this country will be taken back from those incompetent losers and degenerates just wait and see.
    First order of business for the 2012 Congress: Roll back the Obama era tax hikes ! Oh, and start issuing subpoenas and jailing most of the Obama administration starting with that chinless Eric Holder.

  30. I have a question, the Gang of Six say they are ‘abolishing” the AMT. At least that’s what I just read on Saxby’s website. He is one of my senators and I am still trying to figure out what they are really saying. So if they are eliminating the AMT will that change the CBO numbers? It still sounds fishy to me. I don’t know how you lower tax rates yet increase revenues. I don’t know why you can’t just cut 20% across the board everywhere. Please enlighten me on this issue. I have emailed his office once already and am trying to stay on top of this.

  31. I thought if the subsidizes on things like Corn as gas at 8 Billion and other subsidizes were removed Corp taxes would be lowered to 29 %(not mentioned in the article ) . Still higher than all of Europe Corp Taxes . China Corp tax is .05 % ,
    Canada is soon to be 15 % .
    If Obama and the far left continues to treat small business like the Black Plague . Who hires 2.2 out of every three people in America we will stay in the S**T Can guaranteed !

  32. To paraphrase Bill Clinton, “It’s the spending, stupid!” Well, the Senate was close to doing the right thing today, but Obama would have vetoed it anyway. But let’s get real. This whole debt discussion has been theatre anyway. They aren’t cutting anything. They are merely arguing about how much less to spend than they were going to spend. A real cut is when spending goes down. There is a candidate proposing such a plan. He’s not well known but that is changing. He’s written it down too, unlike others. He’s written on how to balance the budget, and how to get the country going again. Check out his “about us’ page. He’s been a soldier, a businessman, and is currently a teacher. Follow the links to his writings. He’s also written on how to contain health care costs, the fiasco we call foreign aid, the wars we should be fighting, border security, scrapping the tax code, and a whole host of other issues which face America. His ideas are based on common sense and logic. Check it out.

  33. Once again, you are ASSUMING elections will be held. As the guy mentioned in an earlier post, NOW is the time to do something about this. NOT “2012”! Somehow, SOME WAY, after being down by fifteen points, O’Bozo will make the “miracle comeback”…. Maybe he’ll claim “credible evidence of a terrorist attack” and suspend the elections. Maybe he’ll turn the “people’s army” loose. The “flash mobs”, to disrupt the polling places. Raise a few dead, stuff a few ballots and presto. FOUR MORE YEARS! Of which there is no way this nation will survive. These criminals, make no mistake, that is what they are, need to be dealt with swiftly.

    1. If anything nefarious happens outside of an overtly honest election Boa that keeps this lunatic in the Oval? We can kiss the US as we know it goodbye. Conservatives will be the only constituency to survive this skirmish within our borders but maybe this is what’s needed. Negotiation is not in the progressive’s vocabulary and if feigned is just another exercise in futility and waste of time. I would hope the Progressives will have that same conviction to want to truly vaporize conservatives but we’ll never see it and certainly not counting on it. I personally want to have a personal chat with Dick Trumka and Stern but I’ll settle for Maher, John “Leibowitz” Stewart and anyone else who has called my Mother and/or Grandmother a Tea Bagger knowing full well the connotation or calling me for three years a racist when I’m anything but. Once the seriousness of the event really hits home with progressives and by definition they’ll do anything to defer pain but too late. From Seattle to Frisco to Malibu to the Hills of Beverly then on to the East Coast I’m quite sure simultaneously. I would hope this is not inevitable but seems every day that goes by makes this scenario more real than not.

  34. Republican Gentlemen,

    These figures are simply not in our Universe. If any semblance of these figures becomes a part of our universe by way of your negotiation skills or the lack thereof, we’ll not only dispatch Obama, which is given but we’ll dispatch you right behind him as there are hundreds to take your place. I hate to keep threatening but there is no sustainable recourse here regardless of what Bill O’ Really wants his new audience to believe. You have our unequivocal support in reversing this spending as quickly as Obama, Pelosi and Reid spent it, got it? Thank you and carry on.


    These clowns spent four trillion in two years, they can cut four trillion in two years.

    NOBAMA 2012

    “Liberalism is just Communism sold by the drink.” P.J.O’Rourke

  36. Hold firm, H of R!! If you yield to Obama’s blackmailing the American people on his phoney “I’ve done everything ” crud. we will be paying the tab for decades. His threatening speech to the nations, carefully postruredas a “news conference” was disgraceful…full of how great he is and how crummy anyone is who challenges him. I don’t trust him. I am a senior, and I am concerned about my grandchildren, not his “fairness mantra” . I don’t trust him, and I am ashamed of him.

  37. Eventually they will come to a deal, this week or next. The President needs to stop using the term “Armageddon”; if anything happens its going to be Obamageddon due to his inability to put forth a budget.

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