No Gimmicks: Just. Cut. Spending.

[Valin]

Power Line:

John Hinderaker
7/20/11

Republicans in Washington are gamely trying to prevent the debt ceiling debate from spinning out of control and becoming a defeat for the party. Currently there are two large-scale efforts on the table to resolve the immediate debt crisis. The first is the still-amorphous Gang of Six plan. It is nearly always wise to be wary of proposals negotiated behind closed doors by bipartisan groups of Senators; the Gang of Six plan, which exists only in outline form, appears to be no exception.

Dan Mitchell of the Cato Institute analyzed the Gang’s proposal; here are some highlights:

The Good
o Unlike President Obama, the Gang of Six is not consumed by class-warfare resentment. The plan envisions that the top personal income tax rate will fall to no higher than 29 percent.

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The Bad
o The much-heralded spending caps do not apply to entitlement programs. This is like going to the doctor because you have cancer and getting treated for a sprained wrist.

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The Ugly
o The entire package is based on dishonest Washington budget math. Spending increases under the plan, but the politicians claim to be cutting spending because the budget didn’t grow even faster. …

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