I’m Changing My Mind On The Gang Of Six Plan
A couple of days ago, I posted that the Gang of Six Plan was about the best we could hope to get… now, prodded by a man whose economic wisdom far outstrips mine, I’ve decided to change my mind. Here’s what that man–Keith Hennessy–has to say in summary:
First I’ll flag a few things I like in the plan.
- I support making a technical correction to CPI, even though it would result in higher revenues.
- Repeal of the CLASS Act is great.
- It’s good they included medical malpractice reform.
That’s it. Others right-of-center are salivating at the low marginal income tax rates described in the plan, both for individuals and corporations. I think those low rates never materialize, for both arithmetic and legislative reasons, and explain why below.
Since the Gang of Six Plan isn’t cast in what they call “legislative language,” (i.e. legalese), it’s not ready to be voted on anyway, and likely won’t be before the Aug 2 debt-limit deadline, so that’s another strike against it.
So, consider this a retraction of my “best we can get” comments about the Gang of Six Plan.