Tennessee senators Bob Corker and Lamar Alexander have introduced a plan to reduce the growth in federal entitlement spending by almost $1 trillion in exchange for increasing the nation’s debt limit by $1 trillion, possibly this spring.

The Dollar for Dollar Act of 2012 would reduce the growth in spending on Medicare, Medicaid, and Social Security, according to a statement posted on Corker’s website. Most of the spending reductions—$689 billion—would come from Medicare reform.

Corker and Alexander seemed confident that Congress and the White House would reach a deal in the so-called “fiscal cliff” negotiations, a high-stakes debate that has dragged on for weeks over how to avoid automatic spending cuts and tax increases starting Jan. 1.

“When the dust settles, federal income taxes will not increase for almost all Americans next year,” Corker and Alexander said.

The two Republicans said their dollar-for-dollar plan “focused on helping Americans avoid falling off the fiscal cliff no one wants to talk about, the looming bankruptcy of Medicare.”

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