SPENDING: Slice $5.8 trillion from projected federal spending in the coming decade through cuts in domestic programs and shifting some responsibilities for health care to states and individuals. Spending would return to levels below those of 2008.

TAXES: Significantly change the tax code, including cutting the top tax rate for both individuals and corporations from 35 percent to 25 percent, reducing the number of income tax brackets and eliminating loopholes.

MEDICAID: Transform funding for the federal-state program, which addresses the health needs of the poor and disabled, into a block grant. A lump sum of federal money would be given to the states, which would be given more discretion over use of the money.

MEDICARE: In a major step toward privatizing the program, the proposal calls for the federal government to limit the amount of money spent on premiums for private health coverage. Instead of directly reimbursing doctors and hospitals, the program would offer a limited voucher to future retirees, who could then choose among private plans for their coverage. The eligibility age would be raised from 65 to 67, starting in 2022. The changes would only be implemented for future beneficiaries — people now younger than 55.