A last-minute proposal could resolve the ongoing battle about the nation’s borrowing capacity and growing debt. Senator Nelson, though, isn’t sold on the plan, yet.
Nelson says he hasn’t jumped on the bandwagon.
“Well, the Gang of Six plan simply needs more detail,” Nelson tells reporters on his weekly conference call.
The Gang of Six, three Democrats and three Republicans, propose a broad outline of nearly $4 trillion in spending cuts over ten years, combined with a tax code overhaul to raise a trillion dollars. The plan would impose spending caps through 2015. Cost-of-living increases for Social Security and other programs would be slowed down. Changes would be made to both Medicare and Medicaid. Tax breaks would be scaled back, but tax rates would be lowered as well. Much of the details of the plan will be left to legislative committees to hammer out.
The problem, according to Nelson, is that broad outline that doesn’t detail how it will impact Social Security and Medicaid.
“There are a lot of good parts to that. There’s no question that there are some excellent pieces in the Gang of Six proposal,” according to Nelson. “But until I know the impact on Social Security and Medicare I have to be skeptical.”
Time is running out. The Treasury Department says it won’t have enough money to pay the nation’s bill on August 3rd if Congress doesn’t act and raise the debt limit above the present $14.3 trillion. The White House has stated that Congress must act by Friday to provide the necessary time to raise the debt ceiling.