Deficit Commission Proposal: Reduce Social Security Increases; Maybe Eliminate Mortgage Deduction

WASHINGTON (AP) — Leaders of President Barack Obama's bipartisan deficit commission are proposing to reduce the annual cost-of-living increases in Social Security. It's part of a sweeping proposal to wrestle $1 trillion-plus budget deficits under control.

The proposal would also set a tough target for curbing the growth of Medicare. And it recommends looking at eliminating popular tax breaks, such as mortgage interest deduction.

As proposed, the plan by Chairman Erskine Bowles and former Sen. Alan Simpson doesn't look like it can win support from 14 of the commission's 18 members to force a debate in Congress. Bowles is a Democrat and was former President Bill Clinton's White House chief of staff. Simpson is a Wyoming Republican.

Draft Deficit Commission Recommendations