President Obama standing with National Commission on Fiscal Responsibility and Reform Co-Chairmen, former White House Chief of Staff Erskine Bowles, left, and former Wyoming Sen. Alan Simpson.
Leaders of President Obama's bipartisan deficit commission are proposing a new deficit cutting plan that they admit will be unpopular.
The commission has proposed reducing annual cost-of-living increases for Social Security, gradually raising the retirement age from 67 to 69 and taking aim at popular tax breaks such as the mortgage interest deduction. The plan would also curb the growth of Medicare.
The proposal would need support from 14 of the commission's 18 members to force a debate in Congress. CBS News reports that the plan does not look like it will win enough support within the commission. Democrats on the committee are balking at the idea of making cuts to Social Security and Medicare, while Republicans are recoiling at the parts of the proposal that would see taxes raised. The authors of the proposal, Democrat Erskine Bowles and Republican Alan Simpson, both acknowledged that they view the plan as a starting point versus a definitive solution.
The deficit-cutting plan comes at a time when the Treasury Department has announced expectations of a third straight year of $1 trillion-plus deficits.