Erskine Bowles and Alan Simpson, former heads of the debt commission, announced a new deficit reduction plan Tuesday. The deal, which would cut the deficit by $2.4 trillion over the next 10-years, is an attempt to find a middle ground between Democrats and Republicans. House Republicans have set a $4 trillion target for deficit reduction, while the White House has set a more modest $1.5 trillion goal.
The new plan would build on recent measures to address the deficit, and cut an additional $2.4 trillion from deficits from 2014-2023. These savings would be achieved via $600 billion in cuts to Medicare and Medicaid, $600 billion in additional tax revenue following tax reform, and $1.2 trillion from cuts and caps to discretionary spending.
Read the proposal.