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Posted: 2:22 a.m. Wednesday, July 20, 2011
By Jamie Dupree
To many Americans, the U.S. Capitol is one big building where everyone does the same thing. But on Tuesday, the Capitol could have easily been split into two distinct slabs, as the House and Senate were almost on different planets when it came to plans to deal with the budget and debt limit.
The big news of the day was supposed to be the House debate and vote on the "Cut, Cap & Balance" plan from the GOP, but by lunch time on Tuesday, the Senate's Gang of Six had breathed new life into negotiations on a broader budget and debt limit deal.
"This is big, bipartisan and balanced," said Sen. Mark Warner (D-VA), who stuck with the Gang of Six talks, even when they looked like the plan was going nowhere.
Warner and his team unveiled their $3.7 trillion budget savings plan to a gathering of over 50 Senators, who jammed a meeting in the Capitol to be briefed on the Gang of Six plan.
"We were very pleased with the reaction," said Sen. Saxby Chambliss (R- GA), "now we just have to figure out a way forward."
One way forward is the thought that this Gang of Six plan could provide the impetus for a "grand bargain" between the two parties on both big budget savings and an increase in the debt limit.
"I think there's the potential this could be made into a vehicle where you would give a conditional debt limit increase," said Sen. Tom Coburn (R- OK), who returned to the Gang of Six after giving up a month ago.
The biggest hurdle in the way of the Gang of Six proposal becoming the basis for an overarching budget and debt limit deal may be the fact that the plan raises $1 trillion in new revenues as part of the deal.
The Gang of Six clearly decided to try to re-brand how the tax portion of this plan is described, in order to sell it to Republicans worried about voting for anything that resembles a tax increase.
"It actually will score as a tax cut," said Chambliss, using the lingo to describe the budget review given by the Congressional Budget Office.
"We eliminate the Alternative Minimum Tax and we reduce rates to historic lows, both on the personal side and the corporate side," Chambliss added, downplaying how the plan will close some tax breaks that might be near and dear to some like mortgage deduction and more.
"We're going to see huge economic growth; that's where the revenue is going to come from," Chambliss argued about the tax provisions.
But over on the House side, there were few Republicans talking about the Gang of Six; instead, the focus was Cut, Cap & Balance, which was approved Tuesday night on a vote of 234-190.
Five Blue Dog Democrats voted for the bill: Boren OK, Shuler NC, McIntyre NC, Matheson UT and Cooper TN.
There were nine Republicans who voted against the measure, led by Rep. Michele Bachmann (R-MN) and Rep. Ron Paul (R-TX).
Next stop on the Cut, Cap and Balance tour is the Senate, which is not thought to be close to the votes needed for approval of that plan.
So what's next? That's the question nobody seems to have the answer to.
Jamie Dupree is the Radio News Director of the Washington Bureau of the Cox Media Group and writes the Washington Insider blog.
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