$4 trillion in deficit cuts proposed
No, this is not coming from the House Republicans. Instead it is proposed by President Obama’s fiscal commission.
NEW YORK (cnnmoney.com) — In a surprise move Wednesday, the co-chairmen of President Obama’s fiscal commission released their preliminary proposals to curb growth in U.S. debt.
The report from Erskine Bowles and Alan Simpson recommends spending cuts beginning in 2012, as well as tax reform and other ways to reduce the deficit by $4 trillion over the next decade.
Three quarters of the $4 trillion would be achieved through spending cuts — including defense — and the rest from more tax revenue.
Among the proposed defense cuts: Freeze noncombat military pay at 2011 levels for three years to save $9.2 billion and reduce overseas bases by one-third to save $8.5 billion. It would also direct $28 billion in cuts already proposed by Defense Secretary Robert Gates toward deficit reduction.
Outside of defense, the report recommends eliminating 250,000 contractors, saving $18.4 billion, and freezing federal pay for three years, saving $15.1 billion.