Nebraska U.S. Senate hopefuls Bob Kerrey and Deb Fischer are differing sharply over how to reduce the soaring national debt.

The Lincoln Journal Star reports that Kerrey, a Democrat, supports a combination of sharp federal spending cuts and some tax increases on the wealthiest Americans.

Fischer, a Republican, rules out tax increases but says she wants deep spending cuts combined with a tax structure that would grow the economy, thus providing additional revenue without raising taxes. She also supports a constitutional amendment requiring a balanced federal budget each year.

Kerrey says a balanced-budget amendment would have devastating consequences for the economy.

The federal debt stands at $16 trillion, including a $1.1 trillion deficit in fiscal 2012.