A new debt proposal from a fiscal commission appointed by President Barack Obama is proposing deep cuts in federal spending including Social Security and Medicare. The proposal also suggests significantly reducing income tax rates and eliminating practically all tax breaks such as the mortgage interest deduction. The plan also calls for raising the Social Security retirement age first to 68 and eventually to 69. Enacting the proposal is supposed to reduce the deficit to 2.2% of GDP by 2015.
Both Democrats and Republicans are already balking at different provisions in the proposal. You can view lawmaker’s reactions to the debt proposal here. Or you can view the actual debt commission report.