Supercommittee Democrats float deficit plan
Senator Max Baucus, a member of the supercommittee, presented the group with a mixed bag of treats and tricks today. According to an article by the Washington Post, Senator Baucus proposed a plan that could save up to $3 trillion over the next 10 years.
According to the article, the proposal includes “significant cuts to federal health programs, including Medicare.” It also includes up to $1.3 trillion in tax increases.
The Washington Post reports:
At a closed-door meeting Tuesday, Sen. Max Baucus (D-Mont.) told his colleagues on the panel that they should pick up where President Obama and House Speaker John A. Boehner (R-Ohio) left off in negotiations this summer… Obama and Boehner were discussing a plan that included provisions to raise taxes, raise the Medicare eligibility age and use a less generous measure of inflation to calculate Social Security benefits.
Such a move may have serious effects on the supercommittee negotiations. The tax debate has been a divisive issue and instigated some of the gridlock experienced earlier this summer. At the same time, however, Baucus is encouraging Democrats to compromise by raising the Medicare eligibility age.
The article notes that, “savings under the plan would be about equally divided between tax increases and spending cuts, including as much as $500 billion in fresh savings from health programs, such as Medicare and Medicaid.”