Panel Weighs Deep Cuts in Tax Breaks and Spending to Narrow Deficit

Panel Weighs Deep Cuts in Tax Breaks and Spending to Narrow Deficit

A draft proposal to be released Wednesday by the chairmen of
President Obama's bipartisan commission on reducing the
federal debt calls for deep cuts in domestic and military
spending starting in 2012, and an overhaul of the tax code to
raise revenue. Those changes and others would erase nearly $4
trillion from projected deficits through 2020, the proposal
says.

The plan would reduce Social Security benefits to most future
retirees -- low-income people would get a higher benefit --
and it would subject higher levels of income to payroll taxes
to ensure Social Security's solvency for at least the next 75
years.