The good news is that today, a group of senators, the "Gang of Six," Democrats and Republicans -- I guess now gang of seven, because one additional Republican senator added on -- put forward a proposal is that is broadly consistent with the approach that I've urged.Dean Baker co-director of the Center for Economic and Policy Research (CEPR), issued the following statement on the Gang of Six deficit plan:
For Republican senators to acknowledge that revenues will have to be part of a balanced package that makes sure that nobody is disproportionately hurt from us making progress on the debt and deficits, I think is a very significant step.
In short, this is a plan that should be expected to please the wealthy since it will mean large reductions in their tax liability in the decades ahead. On the other hand, most of the rest of the country is likely to feel the effects of lower Social Security, Medicare and Medicaid benefits, in addition to other cuts that are not yet fully specified.
For more on this see Who Will Suffer Under the 'Gang of Six' Plan? | The Nation