Debt Reduction Proposals Place Brunt of Economic Pain On Middle Class and Low Income

Washington, D.C., July 19, 2011—Today President Obama spoke favorably about a debt reduction plan developed by the so-called “Gang of Six,” a group of six senators who have been meeting privately for months to construct a bi-partisan debt deal.

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DEBT REDUCTION PROPOSALS PLACE BRUNT OF ECONOMIC PAIN ON MIDDLE CLASS AND LOW INCOME

Senate ‘Gang of Six’ Plan and House ‘Cut, Cap, and Balance’ Plan Let Wealthy Off the Hook While Cutting Essential Supports for Working Americans

Washington, D.C., July 19, 2011—Today President Obama spoke favorably about a debt reduction plan developed by the so-called “Gang of Six,” a group of six senators who have been meeting privately for months to construct a bi-partisan debt deal.

Reported to be based on the failed proposal set forth by The National Commission on Fiscal Responsibility and Reform, a debt reduction commission appointed by President Obama in 2010, the Gang of Six approach includes tax breaks for the wealthy while simultaneously cutting benefits for veterans, retirees, women, low-income households, dependent children, people of color, the disabled and other medically vulnerable populations. The proposal would seek to reduce federal outlays in two phases. The first would target $500 billion in immediate cuts and the second would add additional cuts, including a focus on Social Security.

“The Senate proposal represents an unbalanced and unfair approach to deficit reduction,” said Dr. Maya Rockeymoore, President and CEO of Global Policy Solutions. “Any plan that argues the nation desperately needs to reduce its debt burden while increasing tax giveaways for the wealthy and decreasing benefits for the middle class should be questioned.”

“The ‘Cut, Cap, and Balance’ plan passed by the U.S. House of Representatives is also questionable. Cutting programs, capping spending, and forcing a federal balanced budget amendment without including revenue increases or seriously considering the policy effects on working Americans could have devastating consequences for the real economy.”

“It is time for leaders on both sides of the aisle to get serious about raising taxes; including increasing the tax rate on unearned income, levying a financial transaction tax, closing tax loopholes, and requiring U.S. corporations to pay taxes on profits made overseas.”

Global Policy Solutions is a social change strategy firm based in Washington, D.C. The mission of Global Policy Solutions is to develop strategic solutions that result in transformative benefits for people, communities, and the environment.

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