A couple of days ago, I posted that the Gang of Six Plan was about the best we could hope to get… now, prodded by a man whose economic wisdom far outstrips mine, I’ve decided to change my mind. Here’s what that man–Keith Hennessy–has to say in summary:
First I’ll flag a few things I like in the plan.
- I support making a technical correction to CPI, even though it would result in higher revenues.
- Repeal of the CLASS Act is great.
- It’s good they included medical malpractice reform.
That’s it. Others right-of-center are salivating at the low marginal income tax rates described in the plan, both for individuals and corporations. I think those low rates never materialize, for both arithmetic and legislative reasons, and explain why below.