Signs of life in the Super Committee: Parties swap deficit reduction plans

Republicans and Democrats on the congressional supercommittee Wednesday swapped ambitious plans to reduce the federal deficit but remained at odds over the core question of whether a major tax increase should be included as well as significant spending cuts in Medicare and Medicaid, according to congressional aides.

Republicans on the deficit-reduction committee rejected a Democratic plan to cut the deficit by $3 trillion over 10 years, including a $500 billion cut from Medicare and Medicaid and about $1.3 trillion in increased taxes, according to aides. GOP panel members late Wednesday countered with a plan to cut the deficit by more than $2 trillion that would cut $685 billion from the health-benefit programs and raise far less in revenue, taxes and fees, according to a person briefed on the proposal.

Although each side flatly rejected the other’s, the proposals could set the parameters for further negotiations. And there were glimmers of common ground that could help build the framework of a deal.