Republicans Agree To Raise Taxes…On The Poor
A Democratic analysis of a Republican tax plan shows that it would cut taxes on the wealthy, while raising taxes on the middle class and poor- and pols from both parties are still commending it as an act of compromise.
Republicans had long refused to consider any tax increases to reduce the $1.3 trillion deficit. The plan is estimated to generate an additional $300 billion in tax revenue; Democrats want $1 trillion, while Republicans want more in spending reductions.
The plan would also raise the age for Medicare eligibility from 65 to 67, which represents a major concession from Democrats.
Sen. Lamar Alexander (R-TN) saw progress in the plan, but noted more is needed. “Republicans have put revenues on the table, Democrats have put entitlements on the table—we need to put more of each on the table and get a result,” he told the Washington Post.
Sen. Dick Durbin (D-IL) echoed this sentiment, saying the bipartisan concessions showed “the core of an agreement.”
But Democrats still slammed the proposed plan. Sen. John Kerry (D-MA) said it “will not work,” and called for “real revenue” to be offered.
A Republican aide claimed the analysis was flawed, saying didn’t account for limits on tax deductions for the wealthy.
The Senate “supercommitee” is working on a deal to cut $1.5 trillion from the federal budget by Nov. 23. If they don’t agree on a plan, it will automatically trigger $1.2 trillion in spending cuts- but politicians are already working to get out of this agreement.
What do you think? What should the next compromise be? Will a deal be reached at all?