Instead , Obama proposes cutting deficits by $ 4 billion over 12 years through cuts in both military and discretionary spending , increasing the tax burden on families making more than $ 250,000 a year and adjusting the Medicare and Medicaid government-run health care systems for the elderly and the poor . Note : Republicans ignore warnings of catastrophe without a higher debt ceiling . Conservative senator breaks from his previous pledge of no tax reform . Tax reform would reduce taxes and end loopholes , Sen. Coburn says . Coburn is one of six senators in bipartisan agreement on deficit reduction .
Note : Republicans ignore warnings of catastrophe without a higher debt ceiling . Conservative senator breaks from his previous pledge of no tax reform . Tax reform would reduce taxes and end loopholes , Sen. Coburn says . Coburn is one of six senators in bipartisan agreement on deficit reduction .