Why the Gang of Six Could Be the Best Hope to Rescue the Country from Its Red Ink Crisis

VIDEO: Republican chairman of the House Budget Committee says Obamas plan falls short.
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Somewhere between the left – President Obama's speech today on debt reduction – and the right – House Budget Committee chairman Paul Ryan's budget proposal – lies a middle ground: a bipartisan group of senators working quietly to strike a deal on how to rein in the country's soaring deficit.

They are called the Gang of Six: Democrats Dick Durbin of Illinois, Kent Conrad of North Dakota, and Mark Warner of Virginia and Republicans Tom Coburn of Oklahoma, Saxby Chambliss of Georgia, and Mike Crapo of Idaho.

For the past few months the six lawmakers have sought to come up with a plan to slash the nation's deficit by $4 trillion over the next decade. For the most part, they have been tight-lipped about their internal deliberations.

"These discussions are at a sensitive point, and the six senators are very, very close to agreement on a framework for moving forward," a Democratic aide told ABC News. "It appears unlikely that it will occur until after we return from the upcoming recess."

A few clues were offered Monday when Chambliss and Warner spoke at an event in Atlanta.

"Neither side's got all the answers in this debate," Warner said, according to CNN. "The idea that we can do this on simply one side of the balance sheet – well, it's just a spending problem… no, it's just a taxing problem – isn't the case. If we're not looking at both sides of the balance sheet we should not even start this discussion."

Tax and Spend

In recent years, Republicans have repeatedly argued that Democrats spend far too much money.

"We all know we have this problem not because we tax too little, but because we spend too much," the Senate's top Republican, Mitch McConnell, said Tuesday. "There's no way to tax our way out of this problem. In my point of view, taxes are not on the table because we don't have a revenue problem. We have a spending problem."

Across the aisle Democrats contend that the GOP's unwillingness to raise taxes is keeping money in the hands of the rich, not in government coffers.

"Even today, while they say we've got a deficit problem – and we do and we need to do something about it – they don't want to get rid of the subsidies to the oil and gas companies and they continue to want to give the folks at the very top big tax cuts," Rep. Chris Van Hollen, the top Democrat on the House Budget Committee, said Sunday on "This Week."

Because the Gang of Six is bipartisan, its talks may present the best chance for a divided Congress to reach an agreement on what both sides believe is one of the nation's most pressing problems.

Cutting Medicare, Social Security?

If the Gang of Six does manage to reach an agreement on a plan, it is likely to address hotly-contested issues like reforming entitlement programs such as Medicare, Medicaid and Social Security and revamping the country's tax code. It is also expected to propose further reductions in domestic discretionary spending.

"Some of you are scratching your heads, saying, 'Gosh, that means mortgage interest deduction, charitable deductions, all corporate deductions.' And that's right," Chambliss said in Atlanta, according to CNN. "Every time you add one of those tax expenditures back, you've gotta pay for it."

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