The Hill News

A preliminary report released by President Obama's fiscal commission on Wednesday proposed spending cuts, tax reform and dramatic changes to Social Security.

The report, approved by the panel's co-chairmen, former Clinton Chief of Staff Erskine Bowles and former Sen. Alan Simpson (R-Wyo.), proposes capping discretionary spending, cutting $200 million in domestic and defense spendingin 2015, instituting tax rate reductions while broadening the tax base, gradually raising the retirement age from 65 to 67 and reducing the rate of increase of Social Security benefits, among other changes.

The cuts would begin to take effect in fiscal year 2012.

Wednesday's report is the "chairmen's mark," meaning that it is a draft that has not been approved by the 18 members of the president's commission. The commission was not expected to release its report until ! December. The final draft requires the approval of two-thirds of the panel made up of nine Democrats, seven Republicans, Simpson and Bowles.

Simpson and Bowles say their plan would bring spending down to 22 and eventually 21 percent of U.S. GDP and reduce the deficit from 60 percent of GDP to under 40 percent by 2037.

This post was updated at 1:50 p.m.