The White House (Creative Commons)

The draft proposal, released by co-chairs Erskine Bowles and Alan Simpson on Wednesday, calls for sharp cuts in government spending, cuts that some feel are too much for an already battered economy to bear.  The proposal was already coming under fire within hours of its release, though others defended it as sound.  Amongst the draft’s proposed measures are a revamping of the tax system, cuts to defense spending, and a change to social security that would increase the retirement age to 68 in about 2050.

“On a substantive level most of these proposals have been out there at one time or another,” said Professor Aris Protopapadakis, an expert in fiscal policy at the University of Southern California’s Marshall School of Business.  “Most experts agree that Social Security needs fixing, but it has been difficult to get politicians on the same page on this.”

The draft also proposes to eliminate tax deductions.  One popular deduction with its head on the chopping block is for interest paid on mortgage payments.

“While the mortgage deduction is popular, it was one of the factors leading to the unsustainable growth in housing prices that brought down the economy,” said USC Professor Kevin Murphy, an expert in finance. “The Bowles-Simpson proposal is as sensible as it is politically impossible, and represents a refreshing, grown-up approach to tackling huge problems.”

The proposal states that it will achieve $4 trillion in deficit reduction through 2020 and cut debt to 60 percent of the GDP by 2024.  Simpson and Bowles admit that the proposal will result in some hardships, even stating in their proposal that “the problem is real, the solution is painful.” 

However, fear of backlash from constituents may result in politicians refusing to consider such measures.  In a CNN.com article, Nancy Pelosi was quoted as saying the proposal was "simply unacceptable."

“We can't solve these problems without slaughtering a few sacred cows,” said Murphy.  “I wish I were confident in Congress's ability to do it.”

Reach Reporter Braden Holly here.