On Tuesday two federal budget experts, Alan Simpson and Erskine Bowles, will unveil a new deficit reduction plan to reduce its long term deficit and help motivate U.S. lawmakers to act more decisively ahead of the looming sequester cuts that are expected to kick in on March 1st.
Known for their earlier work in 2010 with the National Commission on Fiscal Responsibility and Reform (often referred to as Bowles-Simpson/Simpson-Bowles), Alan Simpson and Erskine Bowles are now offering a broader $2.4 trillion Simpson-Bowles budget proposal that contains $600 billion more in spending cuts to Medicare and Medicaid, amounting to $200 billion in extra cuts than President Obama’s budget deficit plan.
The other $600 billion comes from closing a variety of tax breaks, a move that Republicans are not expected to endorse.
The other $1.2 trillion in the new Simpson-Bowles budget proposal comes from lowering caps on discretionary spending by reforming cost-of-living calculations for Social Security checks and a variety of government benefits.
The Simpson-Bowles budget proposal asks that U.S. lawmakers should pursue the goal of reducing the U.S. debt to GDP to under 70% over the next 10 years.
Later today at the White House at 10:45 a.m. EST President Obama will appear with emergency responders who are expected to lose their jobs if the sequester cuts kick in.
President Obama is calling upon Congress to approve his own budget proposal which consists of a combination of tax increase and budget cuts that are intended to avert roughly $85 billion in looming across-the-board sequester cuts set to begin on March 1st totalling $1.2 trillion over 10 years.