U.S. Commission Unveils Plan To Reduce Debt

Consumers have been saving money and reducing their credit card debts, sparking many to call on Washington to get its budget under control.

On Thursday, a commission set up by President Barack Obama pitched an initial plan, which would reduce Social Security and Medicare benefits and modify tax rates for corporations.

Commission co-chairs, Democrat Erskine Bowles and Republican Alan Simpson say the measures would cut the deficit by nearly $4 trillion dollars; however, full details will not be available until later this month, the Seattle Times says.

"It's time to lay it out on the table and let the American people start to chew on it," said Alan Simpson.

The plan calls for deep cuts in military and domestic spending, gradual climb in gasoline taxes, reductions in cost-of-living increases, a rise in the retirement age and the elimination of certain tax breaks. All of the steps would take place gradually, with none going into effect before 2012, the news source says.

The plan has been met with mixed reactions by both Democrats and Republicans in Congress. The commission has a December 1 deadline for submitting the plan.