"Gang of Six" Spending Cut Plan: Looks Good so Far

Um, pass the damn thing already so the market doesn't have an excuse to sell off as we get closer to the August 2nd deadline. On looking at the plan it does seem like a fairly good compromise. This part is red meat for me.

Reform the tax code: The plan would eliminate some tax breaks, reform others, halve the number of income tax brackets to three from six, and reduce rates. 

The rate on the new brackets would fall between 8% and 12% for those in the lowest bracket; 14% and 22% for those in the middle bracket; and 23% and 29% for those in the top bracket. Rates today run from 10% on the low end to 35% on the high end.

I'm in the middle bracket so I would have my taxes cut by 6% hopefully. If they keep capital gains rates for me at 15% I would back this thing wholeheartedly. I mean shaving $4 trillion off of the deficit in 10 years sounds like a great idea in the first place. That means we would only be $10 trillion in the hole and can whittle that down further if the recovery becomes more robust. It would be so cool to have a budget surplus sometime in my lifetime.

I mean if the GOP wins the Senate next year they can push through a Constitutional Balanced Budget Amendment and maybe we will be able to finally get something other that $1 trillion in debt added onto our deficit each year.