WASHINGTON Feb 19 A bipartisan fiscal
commission offered a plan to reduce U.S. government deficit
spending by $2.4 trillion over 10 years on Tuesday and do so
with a combination of spending cuts, a healthcare overhaul and
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 $1 trillion annual
deficits and a $16 trillion national debt.
The Simpson-Bowles plan would aim to achieve $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.
"The proposal also calls for a parallel process to make
Social Security sustainably solvent and further actions to bring
transportation spending and revenues in line and limit per
capita cost growth in federal budgetary commitment to health
care to about the growth rate of the economy," according to a
summary of the plan.