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Simpson-Bowles offer new deficit plan

February 19, 2013

The former chairmen of the president's bipartisan National Commission on Fiscal Responsibility and Reform today offered an updated deficit reduction plan calling for $2.4 trillion in savings through a combination of spending cuts and tax changes. "There is no perfect solution to our fiscal problems," former Sen. Alan Simpson (R-WY) and Erskine Bowles, President Clinton's former chief of staff, said. "However, we believe strongly and sincerely that an agreement on a comprehensive plan to bring our debt under control is possible if both sides are able to put their sacred cows on the table in the spirit of principled compromise. We understand that there will be disagreements among policymakers and experts about the exact approach and specific policies necessary to achieve deficit reduction, and we welcome their commentary." The 10-year plan would reduce Medicare and Medicaid spending by about $600 billion by "improving provider and beneficiary incentives throughout the health care system, reducing provider payments, reforming cost-sharing, increasing premiums for higher earners, adjusting benefits to account for population aging, reducing drug costs, and getting better value for our health care dollars." Click here to view the proposal.