Congressional lawmakers appear to be far from enamored with a bipartisan Senate proposal to reduce the deficit, lift the debt ceiling and balance the budget, and a major retirement benefits group has come out against the idea as well, saying it will harm retirement plan participants.
Known as the “Gang of Six” proposal, after the six senators who crafted it — Tom Coburn (R-Okla.), Mike Crapo (R-Idaho), Saxby Chambliss (R-Ga.), Richard Durbin (D-Ill.), Kent Conrad (D-N.D.) and Mark Warner (D-Va.) — the plan would:
* Cap federal agency budgets (including defense) for the next four years.
* Slow the growth of Social Security benefits by curbing the program’s inflation adjustment.
* Streamline income tax rates to range from 8% to 29%.
* Trimming certain tax breaks, including deductions for mortgage interest, retirement savings, charitable giving, high-cost health plans and tax credits for families with children.
