WASHINGTON—Deficit hawks Alan Simpson and Erskine Bowles on Tuesday will propose a detailed plan for rewriting the tax code and implementing deep new spending cuts, hoping to offer a path to compromise for Democrats and Republicans, according to an outline of the plan.
Messrs. Simpson and Bowles co-chaired the White House’s 2010 deficit-reduction panel, which put together a bipartisan package of tax and spending changes that fell flat after the administration and congressional leaders took a look.
They will try once again on Tuesday, at a time when Washington budget talks have entered a particularly frosty period. Republicans and Democrats say they want to reduce the federal budget deficit but are far apart on how and by how much.
Many lawmakers left Washington late last week for recess this week, having made little progress in talks to avert roughly $85 billion in federal spending cuts scheduled to begin March 1. These cuts will run through September unless Congress intervenes, something many analysts believe is becoming less likely each day.
Mr. Simpson, a Republican, and Mr. Bowles, a Democrat, say their new proposal would reduce the federal budget deficit by $2.4 trillion over 10 years, more than the $1.5 trillion package that White House officials have said is their goal. Obama administration officials say any deficit-reduction package must include new tax revenue as well as spending cuts.
House GOP leaders have not yet detailed the size of the deficit-reduction package they will propose, but they have said it would balance the budget within 10 years, which would put it in the $4 trillion range. They have said, though, that it won’t include any tax increases….”Comments »