Simpson, Bowles Back With Sequel to Deficit Plan
They want to slash another $2.4T, far exceeding Obama's goals
By Kevin Spak, Newser User
Posted Feb 19, 2013 7:55 AM CST
Erskine Bowles, right, Alan Simpson, co-chairmen of the president's deficit reduction commission, talking to reporters outside the White House, in this April 14, 2011 file photo.   (AP Photo/Carolyn Kaster, File)

(Newser) – If you liked the first Simpson-Bowles plan, good news! Washington's favorite bipartisan hypothetical budget slashers have come up with a sequel of sorts, proposing $2.4 trillion in new (and probably politically impossible) deficit cuts over the next decade, Politico reports. How would they get there?

  • They'd slash $600 billion from Medicare and Medicaid—even though the White House says $400 billion is its upper limit.
  • They'd raise $600 billion in new tax revenue by eliminating various deductions—even though the House GOP says all revenue increases are off the table.
  • They'd use the less generous "chained CPI" formula for Social Security cost of living increases
  • And they'd enact a host of other discretionary spending cuts, taking an ax to farm subsidies and increasing the amount military personnel and government employees must contribute to their health and retirement plans.

The plan goes above and beyond the $1.5 trillion in deficit reductions President Obama is seeking, and comes on top of the $2.7 trillion in reductions that have already been implemented since the original Simpson-Bowles commission disbanded in 2010, CNN points out. But expect the blueprint to become a major talking point on Capitol Hill in the near future.

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Showing 3 of 7 comments
XFACTOR
Feb 19, 2013 12:17 PM CST
Less slash every penny these two clowns get. Then maybe they'll just go away.
No-Left-Turn
Feb 19, 2013 9:57 AM CST
Cutting spending and reducing tax loopholes is crazy. It is so much better to simply let the country go bankrupt. How can people not understand that?
Hank10303
Feb 19, 2013 9:10 AM CST
"The plan goes above and beyond the $1.5 trillion in deficit reductions President Obama is seeking, and comes on top of the $2.7 trillion in reductions that have already been implemented since the original Simpson-Bowles commission disbanded in 2010" -- Considering that there have been 2.7 trillion in spending cuts already, that Obamacare is a health care cost reduction package and that the rich (including corporate America) have sacrificed nothing; but are collectively responsible for the recession; in the interest of fairness and equality shouldn’t there be a formula ratio more like 1:3 (cuts to revenue). After all, the recession wasn't caused by Medicaid, nor Social Security which isn't even budget or deficit related, nor education, nor unemployment. The recession was caused by the greed of Wall street and every industry even remotely related to the promotion, sale and distribution of stock and bond investments that profited. Why should the working class and poor have to pay for the excesses of the Bush administration (who never clearly won even one election), Wall Street and the Banking industry. Are they too big to do anything for their country now?