US commission proposes US$2.4 trillion deficit cut
ReutersWASHINGTON--A bipartisan fiscal commission offered a plan to reduce U.S. government deficit spending by US$2.4 trillion over 10 years on Tuesday and do so with a combination of spending cuts, a health care overhaul and tax reform.
February 20, 2013, 12:02 am TWN
The proposal by Democrat Erskine Bowles and Republican Alan Simpson, co-chairmen of a fiscal commission that President Barack Obama appointed early in his first term, added to the Washington debate over how to get a handle on US$1 trillion annual deficits and a US$16 trillion national debt.
The Simpson-Bowles plan would aim to achieve US$2.4 trillion in deficit reduction over 10 years. About one-fourth of that reduction would come from health care reforms and another fourth from tax reform.
The remaining reduction would come from a combination of mandatory spending cuts, stronger caps on U.S. discretionary spending, using the Consumer Price Index for inflation-indexed provisions in the budget, and lower interest payments.