Moment of Strange

Six stalwart U.S. senators delivered yesterday the outlines of an intelligent and ambitious deficit- reduction proposal. It is, as President Barack Obama succinctly said, “good news” at a time when some is needed. The bipartisan Gang of Six plan takes the sensible policy framework of the Bowles-Simpson fiscal-reform commission and turns it into a workable package for the Senate to consider. Although the plan’s details are not all clear, the senators say it would reduce deficits by $500 billion immediately and by $3.7 trillion over 10 years. It would overhaul entitlements, in part by switching to a so-called chained consumer price index to calculate benefits. It would tighten the budget process using triggers and enforcement mechanisms to protect against lawmakers with an itch to spend. And it would move toward a simplified and pro-growth tax code.

Enthusiasm expressed by senators not involved in the talks suggests that there may be enough votes in the Senate to pass the package. The House will be a problem, perhaps even an impossibility. To make the odds even longer, it’s unclear how the plan might overlap with various proposals to increase the debt limit -- and very little time remains. Part of the debt-reduction plan unveiled Tuesday by the Gang of Six would "reform, not eliminate tax expenditures" for charitable giving.

The plan says nothing more about charitable tax deductions, which it lumps in with reforms in health, home ownership and retirement.

Asked what "reform" meant, Senate Budget Committee spokesman Stu Nagurka emailed The Huffington Post, "I don’t have any information that I can share with you."

That being said, an executive summary of the proposal gives a hint at the approach to reform, saying it is "consistent with the recommendations of the Bowles-Simpson fiscal commission." The document called for simplifying the tax code while increasing or maintaining fairness.

Under the current system, taxpayers who donate to charities are eligible for a deduction based on their marginal tax rate. Those in the top bracket currently are allowed to deduct a maximum of 35 percent of their taxable income. Those with more modest incomes get more modest deductions.