More Details On Revenue Side Of "Gang Of Six" Plan Emerge

Tyler Durden's picture

Bloomberg has just released some additinal details from the proposed plan based on a document it has received:


We will bring you more if we get the full document.

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economessed's picture

I thought mortgage payments were charitable after 2008?   <TBTF Snark>

wisefool's picture


Only if you use the home to house a stray, recused pet, That is currently being custodianed over by an employee of a non-profit animal shelter.

Herd Redirection Committee's picture

Take away the Mortgage Interest deduction?  I will believe it when I see it.  Too many people (in the Oligarchy, us peasants don't matter a jot) have bet it all on Interest staying deductible forever! 

Check out the latest from the Capital Research Institute "Selling Gold You Don't Have":

"It Seemed Like A Good Idea At The Time"

"It would be  wise to understand the repercussions of this debt not being paid back.  Those most affected will obviously be those who lent the most money to Greece, Italy, Spain, etc.  It turns out that the governments of Europe have been lending each other the money (that’s right, lending money they don’t have, to their also-broke neighbors, it would land a normal person in jail)!  And not only that, financial institutions across Europe have loaded up on the stuff (government debt).

So that means stay away from government debt and don’t touch bank stocks until after the dust has settled.  Last but not least, currency exchange rates will be affected.  So if you have large savings denominated in either US dollars or Euros it would be wise to reconsider that position.   It is tough to predict how exchange rates will change, because both the Euro and the US dollar will both be greatly devalued 2-3 years from now, but the timing, order and magnitude of the moves that will get them there are not knowable at this point in time.

Anecdotally, the CRI was started at the start of 2011.  At that time the price of gold was $1364/ounce, and today, even after a sharp decline in the last 24 hours, gold is at $1591.  Thats a 16% increase!  Or a 16% devaluation in the value/purchasing power of the US dollar,  if you look at it that way (as we at the CRI do)."

Raymond Reason's picture

Wonder how the carry trade will affect other currencies when the Euro and Dollar tank. 

Archimedes's picture

Ha! It's funny cause it's true!

TruthInSunshine's picture

Hey, Obama told Congress to "fix" the debt and deficit woes.

It should have been done by now.

Is it that difficult (to fix an unfixable problem)?

Obama/Jim Grant 2012


slaughterer's picture

The only question that matters: what does Moody's et. al. think of this plan?

Bob's picture

Surely they find the Greecian austerity element of "selling unused federal property" confidence-inspiring:

Look at all those damn national forests going unused!  Hell, even Lady Liberty just stands there like a statue--private enterprise, otoh, will make that bitch dance!

And, looking ahead, need I say just how much more thirst quenching private water will be?  Portions may be a lot smaller, but I'm sure the competitive increase in quality will more than compensate. 

Private hedonics promise a brave new world!

hedgeless_horseman's picture

And, looking ahead, need I say just how much more thirst quenching private water will be? Portions may be a lot smaller, but I'm sure the competitive increase in quality will more than compensate.

Don't believe the privatization of ALL our water is coming?  Don't be so...naive.  If the oil industry can be 100% privatized, then so can water.

Thank God I have well water.  Drill one while (if) you still can, and make sure you get a Simple Pump as a back-up.

LFMayor's picture

++ excellent advice.  Lack of water will move you faster and easier than overt force.  Because you "wanted" to move and such.

Sand point a.k.a drive point wells with a pitcher style pump might be a solution for many... available off the shelves at local Menards here in flyover country.

Bob's picture

One great advantage of living in Great Lakes territory: A lot of fresh water. 

I wonder how many "investment syndicates" are lined up to bid on those?

I can hear Michigan's Gov Snyder pitching it already, like Mr. Drisedale (Jed Clampit's banker) on acid.  Michigan is to fresh water what the Middle East is to oil. 

hedgeless_horseman's picture

One great advantage of living in Great Lakes territory: A lot of fresh water.

Remember that hauling water really sucks.  It is VERY heavy.

Daily indoor per capita water use is 69.3 gallons...


...more than 575 pounds.


Isn't Milwaukee, "in Great Lakes territory?"

Facing Budget Gaps, Cities Sell Parking, Airports, Zoo


Cities and states across the nation are selling and leasing everything from airports to zoos—a fire sale that could help plug budget holes now but worsen their financial woes over the long run.


California is looking to shed state office buildings. Milwaukee has proposed selling its water supply; in Chicago and New Haven, Conn., it's parking meters. In Louisiana and Georgia, airports are up for grabs.


"Privatization"—selling government-owned property to private corporations and other entities—has been popular for years in Europe, Canada and Australia, where government once owned big chunks of the economy.


In many cases, the private takeover of government-controlled industry or services can result in more efficient and profitable operations. On a toll road, for example, a private operator may have more money to pump into repairs and would bear the brunt of losses if drivers used the road less.


Bob's picture

Why is it that my darkest fantasies can never keep up with "free enterprise?"

SteveNYC's picture

Don't forget the flouride filter, a worthwhile investment for your family.

kote's picture

Hey Tyler... you posted the entire thing yesterday.  The tax numbers are in that original document.

RockyRacoon's picture

Not enough hits on that article apparently.  Pull out the juicy parts and post them again.   That'll fix it!

I am Jobe's picture

Once again, lets all hold hands and sing kumbaya and bend over. F this shit. hang Congress

Greenhead's picture

They aren't lowering rates to get less revenues.

nedwardkelly's picture

At this point, I'll take it.

We're screwed regardless. So long as they talk about 'reducing the deficit' instead of eliminating it, we're just going further down the hole.

Seeing as we're pretty f'ed, the least they can do for me is reduce my tax rate in the mean time.

Greenhead's picture

With this plan they might reduce your rate but you will pay more in tax.  Count on it.

SheepDog-One's picture

Our problems are fixed by a tax code tweak? This is all just retarded.

RockyRacoon's picture

If you can't reduce the debt by going on a spending diet, you have to starve the beast to get the same outcome.   It works until it doesn't.   The Keynesians would have us keep on spending until the "recovery" is complete, regardless of the debt accrued.   Not so much on the conservative/libertarian side.   I am sympathetic to both sides so that just proves that neither approach will work.

XenoFrog's picture

Maybe they'll get rid of the mortgage interest deduction on 1st homes too and really fuck the suckers who are still paying their mortgages.

DonnieD's picture

The first time homeowner (young and probably unable to afford) that bought a home a year or 2 ago with that "tax credit" from the government and has since lost many multiples of that in equity is now going to get the double whammy of their interest deduction taken away. They must want to kill someone right about now.

The majority of these homes will be back in foreclosure very shortly. The government should be proud of themselves for financially raping these people.

InconvenientCounterParty's picture

no shit.

That would be a huge tax increase on the GOP base? I'm going to have to call booshit on that one. They couldn't be that craven could they?

Just skip to the ending --zero taxes for all.

wisefool's picture

Bingo. Implement sales taxes so that when our chinese overlords start buying american physical assets, (with thier FRNs) the government can re-coup its investment. 

Chicken_Little's picture

Xeno if they do that, I'll  default and lawyer-up and probably end up with a free townhouse.

oogs66's picture

is it ironic that they named themselves after a communist group?

Cognitive Dissonance's picture

My thoughts exactly. Always a trip inside the mind to examine what they call themselves.

The word "gang" is very telling because it implies all kinds of shit and none of it good.

Cognitive Dissonance's picture

You mean Our Crooks.

OK folks. Which one is Timmy and Bernanke and.....????

<too easy>

1100-TACTICAL-12's picture

Everybody knows that the dice are loaded
Everybody rolls with their fingers crossed
Everybody knows that the war is over
Everybody knows the good guys lost
Everybody knows the fight was fixed
The poor stay poor, the rich get rich
That's how it goes
Everybody knows
Everybody knows that the boat is leaking
Everybody knows that the captain lied
Everybody got this broken feeling
Like their father or their dog just died

Everybody talking to their pockets
Everybody wants a box of chocolates
And a long stem rose
Everybody knows

Seasmoke's picture

well i see pelosi, summers, obama, bernanke , hillary and geithner are having a grand time

Cognitive Dissonance's picture

You missed the dog. Common oversight.

No one suspects the one that shits on the floor and licks his.......

RockyRacoon's picture

I was secretly in love with Darla.

Cognitive Dissonance's picture

It always comes down to the Mary Ann or Ginger decision.

Rodent Freikorps's picture

Whatever happened to Bo the dog?

LMAO's picture

Nah, the only easy one was Obama. I suspect that the one, front and centre with the black eye is Blankfein. The others, I'm not sure.



jeff montanye's picture

and not for the first time.  i think they like the frisson of the forbidden.  kind of like their sex lives.  well, and there's the bribery.

Pure Evil's picture

That was the Gang of Four that tried to take over The Peoples Republic of China after Mao died, which included Mao's wife.

dropdeadfed's picture

First 2 bulletpoints, are those increases or decreases?

jeff montanye's picture

believe they would be decreases.  now both top rates are 35%.