President Obama joined Democratic and Republican senators Tuesday in offering support for a $3.7 trillion deficit-reduction plan announced that morning by the five remaining members of the Gang of Six.
Sen. Tom Coburn
Thomas (Tom) Allen CoburnDemocrats step up hardball tactics in Supreme Court fight COVID response shows a way forward on private gun sale checks Inspector general independence must be a bipartisan priority in 2020 MORE (R-Okla.), who had pulled out of the Gang of Six in May, also rejoined the group and praised the plan as something that could win the 60 votes needed to pass the Senate.
“The plan has moved significantly, and it’s where we need to be — and it’s a start,” Coburn said. “This doesn’t solve our problems, but it creates the way forward where we can solve our problems.”
Sen. Mark Udall
Mark Emery UdallHickenlooper ousts Gardner in Colorado, handing Democrats vital pickup Live updates: Democrats fight to take control of the Senate The 10 Senate seats most likely to flip MORE (D-Colo.), in saying he would support the Gang’s plan, added: “There’s a lot of support for turning the gang into a mob.
“Count me in,” he said. “I’ve long held this is what we need to do. The credit agencies are saying it’s not enough to take care of the debt limit. We have to take care of the long-term fiscal scenario.”
At the top of the White House press briefing, Obama described the plan as "good news," adding that it was "broadly consistent" with the approach he had endorsed for reducing the deficit.
Another key endorsement came from Sen. Lamar Alexander
Andrew (Lamar) Lamar AlexanderMitch McConnell might not endanger the planet Republican Bill Hagerty wins Tennessee Senate race The spectre of pension failures haunts this election MORE (Tenn.), the third-ranking Republican in the Senate.
"This is a serious, bipartisan proposal that will help stop Washington from spending money that we don't have, and I support it," Alexander said.
Coburn said the plan would reduce the deficit by $3.7 trillion over the next 10 years and increase tax revenues by $1 trillion by closing a variety of special tax breaks and havens.
He also noted, however, that the Congressional Budget Office would score the plan as a $1.5 trillion tax cut because it would eliminate the Alternative Minimum Tax. It would generate a significant amount of revenue out of tax reform and reduction of tax rates, which authors believe would spur economic growth.
Coburn said he expected a “significant portion of the Senate” to support the plan — “maybe 60 members.”
More from The Hill on the debt talks:
♦ Read the Gang of Six plan (PDF)
♦ Gang of Six plan punts on key details
Boehner
John Andrew BoehnerDemocrats seek wave to bolster House majority Bottom line Pelosi and Trump go a full year without speaking MORE-looks-to-plan-b" mce_href="http://thehill.com/homenews/house/172201-gop-touts-cut-cap-and-balance-as-boehner-looks-to-plan-b">♦ GOP touts ‘cut, cap and balance’, Boehner considers fallback
♦ Obama threatens to veto 'cut, cap and balance' bill
He endorsed the plan to colleagues during Tuesday’s meeting, according to a lawmaker who attended.
Sen. Kay Bailey Hutchison (R-Texas) said the plan, negotiated by the remaining members of the Gang of Six — Sens. Kent Conrad (D-N.D.), Mike Crapo
Michael (Mike) Dean CrapoRisch wins reelection in Idaho Barrett says she did not strike down ObamaCare in moot court case GOP Sen. Thom Tillis tests positive for coronavirus MORE (R-Idaho), Dick Durbin
Dick DurbinUncertainty, Trump loom over packed year-end agenda GOP Rep. Rodney Davis fends off Democratic challenger in Illinois Durbin wins reelection in Illinois MORE (D-Ill.), Saxby Chambliss
Clarence (Saxby) Saxby ChamblissFight for Senate majority boils down to Georgia Lobbying world GOP lobbyist tapped for White House legislative affairs MORE (R-Ga.) and Mark Warner
Mark Robert WarnerHillicon Valley: Officials on alert for potential cyber threats after a quiet Election Day | Officials warn delayed vote count could lead to flood of disinformation | Facebook takes down massive 'Stop the Steal' group Officials on alert for potential cyber threats after a quiet Election Day Officials warn delayed vote count could lead to flood of disinformation MORE (D-Va.) — could win a majority of votes in the Senate.
“Likely 60 [votes],” she said. “The House should like this plan because it has spending cuts, and I believe it will spur the economy.”
Hutchison said she would vote for it, and urged House Republicans to back it as well.
“I think that they have produced something that has mechanisms that are concrete, and that’s what I think the House is looking for, and [so are we],” she said.
Warner also touted the Gang’s proposal.
“The Gang of Six-plus is back,” he said after the meeting.
Conrad said the Gang has given their colleagues 24 hours to say whether they are on board, and that signs are encouraging because Republicans and Democrats in the room stood up to support the framework.
“Obviously a group of six can’t pass anything around here — we need to get to 60,” Conrad said.
He added that he does not know if the framework could be used to resolve the debt-ceiling crisis, but that such an idea could be a “possibility” if enough senators signed on.
John Andrew BoehnerDemocrats seek wave to bolster House majority Bottom line Pelosi and Trump go a full year without speaking MORE (R-Ohio) has not yet been briefed on the Gang’s plan.
Sen. Rob Portman
Robert (Rob) Jones PortmanRick Scott running to chair Senate GOP campaign arm Graham wants to review ActBlue's source of small-dollar contributions GOP blocks Schumer effort to adjourn Senate until after election MORE (R-Ohio) said he has met with the Gang a total of six times. He added that the framework “could be helpful” in the debt-ceiling fight, but said the White House and the House have to be brought in on it next.
"That is the challenge," he said.
According to an executive summary, the Gang of Six plan would stabilize the debt by 2014 and reduce publicly held debt to 70 percent of gross domestic product by 2021.
It would involve two separate bills — one implementing $500 billion in immediate deficit cuts and another implementing larger reforms. Conrad said he has held off marking up a budget in committee to use the normal budget process to move the Gang of Six plan.
On entitlements, the plan would fully pay for the Medicare “doc fix” over 10 years, allowing doctors to avoid a drastic cut in Medicare payments under the law, which is regularly avoided but never paid for.
The plan also contains strong enforcement procedures. One of these would require a 67-vote supermajority in the Senate to circumvent spending caps.
Conrad said Coburn was enticed to rejoin the group because the Gang had agreed to add $116 billion in heathcare-entitlement savings to the framework. He said the way the extra reductions are achieved is up to Senate committees, but the framework specifies that if target savings are not achieved, 10 senators can propose a way to do so on the Senate floor and have the plan receive expedited treatment.
Conrad said 74 percent of the plan’s deficit-reduction goal would come from spending cuts and 26 percent from higher revenues, adding that the framework addresses Social Security but does not use savings for deficit reduction.
More than 50 senators, including an even mix of Democrats and Republicans, attended a briefing by the architects of the plan.
Sen. Mike Johanns
Michael (Mike) Owen JohannsMeet the Democratic sleeper candidate gunning for Senate in Nebraska Farmers, tax incentives can ease the pain of a smaller farm bill Lobbying World MORE (R-Neb.), who co-authored a letter in March urging Obama to support a comprehensive deficit-reduction package that received 64 signatures, said the remaining members of the Gang of Six have produced a politically viable plan.
“This is a very thoughtful, serious plan,” Johanns said. “I have now seen the presentation half a dozen times, and each time I have seen it I have become more and more convinced that this is the vehicle that gives us the best opportunity to deal with a whole range of issues. I’m excited about the possibilities here.”
Republican Sens. Alexander, Kelly Ayotte
Kelly Ann AyotteBottom line The Hill's Morning Report - Sponsored by Facebook - Senate makes SCOTUS nominee Barrett a proxy for divisive 2020 Senate Republicans scramble to put Trump at arm's length MORE (N.H.), John Barrasso
John Anthony BarrassoBiden climate agenda would slam into Senate GOP roadblocks Trump signs bipartisan bill funding conservation grants Senate GOP to drop documentary series days before election hitting China, Democrats over coronavirus MORE (Wyo.), Richard Burr
Richard Mauze BurrRick Scott running to chair Senate GOP campaign arm As Trump downplayed the virus publicly, memo based on private briefings sparked stock sell-offs: NYT Hillicon Valley: Subpoenas for Facebook, Google and Twitter on the cards | Wray rebuffs mail-in voting conspiracies | Reps. raise mass surveillance concerns MORE (N.C.), Bob Corker
Robert (Bob) Phillips CorkerCornyn: Relationships with Trump like 'women who get married and think they're going to change their spouse' Trump excoriates Sasse over leaked audio Has Congress captured Russia policy? MORE (Tenn.), John Cornyn
John CornynThe Hill's Morning Report - Too close to call Senate control in flux as counting goes forward in key states Chip Roy fends off challenge from Wendy Davis to win reelection in Texas MORE (Texas), Mike Enzi
Michael (Mike) Bradley EnziRepublican Cynthia Lummis wins Wyoming Senate election Bottom line Chamber of Commerce endorses McSally for reelection MORE (Wyo.), Lisa Murkowski
Lisa Ann MurkowskiRick Scott running to chair Senate GOP campaign arm Alaska Senate race sees cash surge in final stretch Bitter fight over Barrett fuels calls to nix filibuster, expand court MORE (Alaska), Pat Roberts
Charles (Pat) Patrick RobertsBusiness groups scramble to forge ties amid race for House Agriculture chair Republicans hold on to competitive Kansas House seat Marshall wins Kansas Senate race MORE (Kan.) and John Thune
John Randolph ThuneBiden holds Minnesota The Hill's Morning Report - Sponsored by Facebook - 24 hours to go Senate battle threatens to spill into overtime MORE (S.D.) also attended Tuesday’s meeting.
Democratic Sen. Michael Bennet
Michael Farrand BennetHickenlooper ousts Gardner in Colorado, handing Democrats vital pickup Lobbying world Senate Democrats hold talkathon to protest Barrett's Supreme Court nomination MORE (Colo.), who led the March letter-writing effort with Johanns, said the Gang’s proposal received a warm reception from Republicans and Democrats in Tuesday’s meeting.
“We need to make sure that the capital markets are reassured the paper they own is worth what they paid for it,” he said. “No one is going to agree with every single thing in this plan. There is no plan that everybody is going to agree with in its entirety, but this plan meets those broad tests.”
Sen. Joe Lieberman (I-Conn.) said he and many of his colleagues would support the framework because they believe Congress needs to take significant steps to reduce the deficit. He also said many see a contingency plan under negotiation by Senate leaders as insufficient.
The fallback plan being discussed by Senate Majority Leader Harry Reid
Harry Mason ReidHow a tied Senate could lead a divided America Harry Reid rips Lindsey Graham over Trump: 'He went to the dark side' after McCain died Harry Reid predicts Democratic Senate pickups in Iowa, Alaska, Montana MORE (D-Nev.) and Minority Leader Mitch McConnell
Addison (Mitch) Mitchell McConnellPelosi, Schumer call to congratulate Biden Chris Wallace after Fox calls race for Biden: This is going to be 'increasingly untenable' for Trump Biden's defeat of Trump is the most important win since FDR MORE (R-Ky.) would include $1.5 trillion in spending cuts and set up a special committee that would put together a larger deficit-reduction package that would come straight to the Senate floor. But some lawmakers see such a committee as a waste of time that would merely replicate the work already done by the president’s fiscal commission and the Gang of Six.
“I think what happened this morning is that the Gang of Six began to turn into a bipartisan majority of senators who want to solve a national problem rather than play partisan politics,” Lieberman said. “I am ready to sign up. ... I appeal to people, don’t start to pick away at this.
“I was actually worried they had taken so long to come together as a Gang of Six that their moment had passed, but I think this really is the moment because everybody sees the process drifting toward a kick-the-can-down-the-road response, which is embarrassing.”
Sen. John Kerry
John Forbes KerryMarkey wins reelection in Massachusetts On The Trail: The fallacy of a conclusive election night McCarthy urges networks not to call presidential race until 'every polling center has closed' MORE (D-Mass.) said the framework could be part of a deal to raise the debt ceiling, because it is a balanced approach.
He called the percentage of deficit reduction achieved through higher tax revenues “small” and questioned whether the plan does enough to stimulate growth, but acknowledged that every senator would probably want to tweak the framework.
—This story was posted at 10:38 a.m. and last updated at 2:05 p.m.
