Budget Category 1 2 3 4 5 6 7 Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary

Spending

Category

Description

Savings over 10 Yrs (FY 12 - 21)

$1,082,000,000,000 $862,000,000,000 $749,900,000,000 $611,000,000,000 $378,400,000,000 $286,000,000,000 $111,100,000,000

Source CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Source Citation

Non-Defense Reduce non-defense discretionary spending by 1% each year for Spending next 10 years. Defense Reduce defense appropriations by 1% annually for next 10 years. Non-Defense Freeze non-defense discretionary spending at FY 11 levels. Spending Defense Freeze defense appropriations at FY 11 level. Non-Defense Limit rate of growth in non-defense discretionary spending to Spending 1.2% a year for next 10 years. Defense Limit rate of growth in DOD appropriations to 1.4 percent a year. Veterans Prevent military retirees and their dependents from enrolling in TRICARE Prime. Allow retirees and their dependents to enroll in TRICARE Standard or Extra and would pay monthly enrollment FEE set at 28% of the cost of providing benefits. Transportation Reduce federal funding for the highway system starting in 2012 by lowering obligation limitation for the Federal-Aid Highways Program to the amount of projected revenues going to the highway account of the Highway rust Fund. Federal Reduce annual salary increase by .5% each year for Federal Employees civilian employees. Transportation Eliminate intercity rail subsidies, including Amtrak and high speed rail service. Research Reduce NIH funding to FY 03 levels and only allow future growth to be tied ton inflation. Federal Slow growth of federal contributions to the Federal Employees Employees Health Benefits Program by offering voucher for first $5,000 of an individual premium, and $11,000 of a family premium. Index future increases to inflation. (plus $31.35 Bil in Mandatory) Infrastructure Eliminate federal grants to wastewater and drinking water infrastructure (Clean Water Act and Safe Drinking Water act state revolving funds) Defense Replace Joint Strike Fighter Program with F-16's and F/A-18's. Veterans Limit access for veterans seeking medical care from the Department of Veterans Affairs by closing enrollment for priority groups 7 and 8 and cancel the enrollment of all veterans currently in those groups. Raise enrollment FEES, copayments and deductibles for military retirees under age 65 who choose to use TRICARE. Increase payments by tenants in federally assisted housing from 30% of adjusted gross family income to 35% by 2016. Raise copayments for pharmaceuticals under TRICARE.

Option 14.1 Option 1.1 Option 14.2 Option 1.2 Option 14.3 Option 1.3 Option 4

Discretionary Spending

$108,100,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 20

9 10 11 12

Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending

$50,710,000,000 $44,700,000,000 $42,750,000,000 $41,900,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 37 Option 23 Option 33.1 Option 14

13

Discretionary Spending Discretionary Spending Discretionary Spending

$36,530,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 17

14 15

$36,100,000,000 $34,000,000,000

Option 7 Option 35

16 17 18 19

Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending

Veterans Housing Veterans

$29,700,000,000 $26,440,000,000 $26,000,000,000 $21,900,000,000

20

Transportation Eliminate the New Starts program that funds expansion of rail and other mass-transit systems and the Small Starts Program that provides grants for public transportation capital projects. Transportation Increase aviation security FEES by implementing flat $5 FEE per one way trip. Passengers currently pay $2.50 for a trip with no stops and $5 for a trip with 1 or more stops.
8/13/2012

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 3 Option 34 Option 5 Option 24

$20,800,000,000

Option 22

20110916_debt-reduction-options

pg 1 of 26

Comments

20110916_debt-reduction-options

8/13/2012

pg 2 of 26

Budget Category 21 Discretionary Spending Discretionary Spending Discretionary Spending

Category Defense

Description Cancel further development of the Navy and Marine Corps' Joint Strike Fighters and Replace Aircraft with F/A-18E/Fs currently in production. Cap increases in military pay at .5 percent below increase in the employment cost index. Eliminate funding for 11 discretionary grant programs at the Department of Education that address the physical, emotional and social well-being of students in and out of the classroom; including the 21st Century Community Learning Center program. Restrict growth in NIH funding to 1% each year. Reduce size of federal workforce by 10% through attrition (this $ is thru 2015) Restrict access to Pell Grants by making students with an Expected Family Contribution (EFC) over $2500 ineligible for a Pell Grant. Eliminate funding for National Community Service Programs including AmeriCorps. Finance all mandatory federal inspections of meat, poultry and egg products with FEES paid by processing facilities. Eliminate grants to large and medium sized airports. There are currently 65 large and medium sized airports that account for 90% of all passenger boarding's. Keeping grants for small airports only would save $11.6b over 10 years. Consolidate DOD's four retail systems on military bases into single retail system over 5 years. Provide tax free grocery allowance to active duty service members to compensate for potential increased product costs. Reduce funding for law enforcements activities funded by the Department of Justice, including State and Local Law Enforcement Assistance, Justice Assistance, Juvenile Justice, Community Oriented Policing Services (COPS), and Violence Against Women programs by 5% for next 5 years. Eliminate the Senior Community Service Employment Program that funds part time jobs for low-income people over age 55. Reduce funding for energy efficiency and renewable energy research, development and demonstration by 25% below FY 11 levels. Delay initial fielding of Army's Ground Combat Vehicle until 2025. Eliminate wealthier "Entitlement Communities" from Community Development Block Grant Program (CDBG) and direct funding to needier communities. Reducing funding for NEA, NEH, Corporation for Public Broadcasting, National Gallery of Art and JFK Center for Performing Arts by 25% and freeze future spending End development of the Medium Extended Air Defense System (MEADS).
8/13/2012

Savings over 10 Yrs (FY 12 - 21)

$18,000,000,000

Source CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Source Citation

Option 8

22 23

Defense Education

$17,500,000,000 $16,900,000,000

Option 2 Option 27

24 25

Discretionary Spending Discretionary Spending Discretionary Spending

Research Federal Employees Education

$13,280,000,000 $13,200,000,000

26

$12,640,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010. CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 33.2

Option 28

27 28 29

Discretionary National Service Spending Discretionary Food Safety Spending Discretionary Transportation Spending

$12,120,000,000 $11,600,000,000 $11,610,000,000

Option 29 Option 32 Option 21

30

Discretionary Spending

Defense

$9,100,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 6

31

Discretionary Spending

Public Safety

$9,042,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 36

32

Discretionary National Service Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Energy

$9,041,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 30

33

$7,628,000,000

Option 16.3

34 35

Defense Economic Development Arts and Humanities Defense

$7,000,000,000 $6,123,000,000

Option 11 Option 26

36

$5,318,000,000

Option 31

37

$4,340,000,000

Option 12

20110916_debt-reduction-options

pg 3 of 26

Comments

20110916_debt-reduction-options

8/13/2012

pg 4 of 26

Budget Category 38 Discretionary Spending

Category

Description

Savings over 10 Yrs (FY 12 - 21)

$4,326,000,000

Source CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Source Citation

39

Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending

40 41 42 43 44

45 46 47 48 49

Infrastructure Increase FEES for use of inland waterway system. FEES would be set high enough to cover costs of constructing, operating and maintaining inland waterways. Currently, 50% of these costs are paid by a tax on fuel consumed by towboats, the rest through appropriations. Trade Eliminate the International Trade Administration's Trade Promotion Activities designed to increase competitiveness of U.S. industries and increase exports. Energy Reduce funding for nuclear energy research, development and demonstration by 25% below FY 11 levels. Infrastructure Create state revolving funds to finance rural water and waste disposal. Energy Reduce funding for fossil energy research, development and demonstration by 25% below FY 11 levels. Energy Eliminate Dept. of Energy's grants to states for energy conservation and weatherization. Defense Cancel the Expeditionary Fighting Vehicle program, but provide stream of research and development funds to enable Marine Corps to come up with alternative to the EFV. FEES Charge transaction FEES to fund the Commodity Futures Trading Commission. FEES Charge FEES to offset the cost of federal rail safety activities. Defense Defense Federal Government FEES FEES FEES FEES FEES FEES FEES Federal Government Health Care Interior Reduce number of aircraft carriers to 10 (from 11) and navy air wings to 9 (from 10) End the Precision Tracking Space System being designed by the Missile Defense Agency. Reduce federal printing, travel and vehicle budgets by 20%. (this $ is thru 2015) Collect new FEES for the Food and Drug Administration. Impose FEES that recover the costs of pesticide and newchemical registration. Increase FEES for permits issued by Army Corps of Engineers. Increase registration FEES for the Federal Aviation Commission. Authorize maintenance and location FEES for hardrock mining on federal lands. Impose FEES on users of the St. Lawrence Seaway. Use state formulas to set grazing FEES for federal lands. Instruct General Services Administration to loosen restrictions making it easier to sell excess federal property. Eliminate funding for Title X family planning. Eliinate funding for Save America's Treasures Program, a publicprivate effort to protect threatened cultural and historical treasures in America. Eliminate funding for the International Fund for Ireland.
8/13/2012

Option 18

$3,824,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010. CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010. Republican Study Committee "Spending Reduction Act" Jan 2011 Republican Study Committee "Spending Reduction Act" Jan 2011 Republican Study Committee "Spending Reduction Act" Jan 2011

Option 19

$3,720,000,000 $3,289,000,000 $3,245,000,000 $2,750,000,000 $2,490,000,000

Option 16.2 Option 25 Option 16.1 Option 15 Option 10

$1,998,000,000 $1,882,000,000 $1,810,000,000 $1,580,000,000 $1,100,000,000

Option 38.7 Option 38.6 Option 9 Option 13

50 51 52 53 54 55 56 57

$843,000,000 $816,000,000 $554,000,000 $530,000,000 $525,000,000 $354,000,000 $160,000,000 $100,000,000

Option 38.9 Option 38.5 Option 38.1 Option 38.8 Option 38.2 Option 38.4 Option 38.3

58 59

$3,180,000,000 $250,000,000

60

Foreign Aid

$170,000,000

20110916_debt-reduction-options

pg 5 of 26

Comments

20110916_debt-reduction-options

8/13/2012

pg 6 of 26

Budget Category 61 62 Discretionary Spending Discretionary Spending

Category Low Income Programs Interior

Description Eliminate the Legal Services Corporation. Eliminate National Heritage Area Grants and Statutory Aid intended to provide seed money to non-federal sites of culutral and historical value operated by state or local agencies. Eliminate Exchange Programs for Alaska Natives, Native Hawaiians, and their Historic Whaling and Trading Partners. Eliminate the Economic Development Administration which provides various grants, loans, and other subsidies for economic development to state and local governments. Eliminate the The Energy Star Program, a joint initiative of the Department of Energy (DOE) and the Environmental Protection Agency (EPA). Eliminate the U.S. Agency for International Development (USAID). Eliminate general assistance to the District of Columbia. Eliminate federal funding to the Washington Metropolitan Area Transit Authority. Eliminate funding to the United Nations Intergovernmental Panel on Climate Change (IPCC) Cut funding for foreign aid by 50%. The U.S. spent $33b on foreign aid in Fiscal Year 2011, around 1% of the federal budget. Eliminate the HOPE VI program that provides grants to public housing agencies to demolish and rebuild public housing units. Eliminate federal funding to the Woodrow Wilson Center for International Scholars. Eliminate federal funding for the Manafacturing Extension Partnership that helps small and mid-sized U.S. manufacturers create and retain jobs Eliminate the Appalachian Regional Commission that promotes economic development in 9 states. Eliminate funding for all applied research at the Department of Energy. Eliminate the FreedomCAR and fuel partnership program provides funding for research on fuel cell technology. Eliminate the U.S. Department of Agriculture's Sugar Program that maintains price controls by loaning money to sugar producers and, if necessary, directly purchasing sugar during periods of low prices to raise the price to preset levels. Ending the overseas contingency operations emergency supplemental and on-budget appropriations for Iraq and Afghanistan starting in Fiscal Year 2013, providing $170 billion in Fiscal Year 2012 to fund redeployment. Convert the federal share of Medicaid spending into a block grant program and index future spending to inflation. Freeze federal employee pay through 2015 and require federal employees to pay for half of the defined benefit they receive at retirement.
8/13/2012

Savings over 10 Yrs (FY 12 - 21)

$4,200,000,000 $2,400,000,000

Source Republican Study Committee "Spending Reduction Act" Jan 2011 Republican Study Committee "Spending Reduction Act" Jan 2011

Source Citation

63 64

Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending Discretionary Spending

Education Jobs

$90,000,000 $2,930,000,000

Republican Study Committee "Spending Reduction Act" Jan 2011 Republican Study Committee "Spending Reduction Act" Jan 2011 Republican Study Committee "Spending Reduction Act" Jan 2011 Republican Study Committee "Spending Reduction Act" Jan 2011 Republican Study Committee "Spending Reduction Act" Jan 2011 Republican Study Committee "Spending Reduction Act" Jan 2011 Republican Study Committee "Spending Reduction Act" Jan 2011 Reuters "Obama's "smart power" plan risks death of 1,000 cuts" Sept 7, 2011 Republican Study Committee "Spending Reduction Act" Jan 2011 Republican Study Committee "Spending Reduction Act" Jan 2011 Republican Study Committee "Spending Reduction Act" Jan 2011 Republican Study Committee "Spending Reduction Act" Jan 2011 Republican Study Committee "Spending Reduction Act" Jan 2011 Republican Study Committee "Spending Reduction Act" Jan 2011 Republican Study Committee "Spending Reduction Act" Jan 2011

65

Energy

$520,000,000

66 67 68 69 70

Foreign Aid District of Columbia District of Columbia Foreign Aid Foreign Aid

$13,900,000,000 $2,100,000,000 $1,500,000,000 $125,000,000 $115,000,000,000

71

Housing

$2,500,000,000

72 73

Education Jobs

$200,000,000 $1,250,000,000

74 75 76 77

Jobs Energy Energy Agriculture

$760,000,000 $12,700,000,000 $2,000,000,000 $140,000,000

78

Mandatory Spending

Iraq / Afghanistan

$1,600,000,000,000

Economic Policy Institute, "The Peoples Budget: A Technical Analysis" April, 2011

79

Mandatory Spending Mandatory Spending

Medicaid

$750,000,000,000

FY 2012 Budget Resolution "The Path to Prosperity: Restoring America's Promise." FY 2012 Budget Resolution "The Path to Prosperity: Restoring America's Promise."
pg 7 of 26

80

Federal Employees

$375,000,000,000

20110916_debt-reduction-options

Comments

20110916_debt-reduction-options

8/13/2012

pg 8 of 26

Budget Category 81 82 Mandatory Spending Mandatory Spending Mandatory Spending Mandatory Spending

Category Low Income Programs Medicaid

Description

Savings over 10 Yrs (FY 12 - 21)

$350,000,000,000 $287,400,000,000

Source FY 2012 Budget Alternative "Republican Study Committee: Honest Solutions" CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Source Citation

83 84

85

Mandatory Spending

86 87 88 89 90

Mandatory Spending Mandatory Spending Mandatory Spending Mandatory Spending Mandatory Spending Mandatory Spending Mandatory Spending

Cap the Supplemental Nutrition Assistance Program (SNAP) at FY 2007 levels. Convert federal share of Medicaid payments for long term care services into block grant and index future increases to employment cost index. Medicare Gradually raise the basic premium for Medicare Part B from 25% to 35% for enrollees over 65 over a 5 year period. Medicaid Convert federal share of Medicaid payments for long term care services into block grant and index future increases to employment cost index and changes in the number of aged, blind, and disabled people enrolled in Medicaid. Medicaid Lower the 50% floor on federal matching rates to 45% for all Medicaid covered services that are reimbursed at FMAP rate. Lowering floor to 45% would reduce FMAP reimbursement rates for 14 states. Social Security Raise earliest social security eligibility age to 64 by 2025. Social Security Switch to pure price indexing for calculating social security benefits. Medicare Raise Medicare eligibility age to 67. Social Security Raise full social security retirement age to 70. Require manufacturers of brand name drugs to pay federal government a rebate on drugs purchased by enrollees on the Medicare Part D low-income-subsidy (LIS) program. Social Security Base cost of living adjustments for social security on chained consumer price index. Medicare Replace Medicare's current mix of cost sharing requirements with a single combined annual deductible of $550 for all Part A and Part B services, a uniform coinsurance rate of 20% above that deductible with an annual cap of $5,500 on an enrollees total cost-sharing liabilities and Bar Medigap policies from paying any of the first $550 of an enrollee's cost-sharing liabilities in 2013 and limit coverage to 50% of the next $4,950 in cist sharing. Social Security Change the way social security retirement benefits are calculated by applying progressive benefit formula to each year of indexed earnings. Health Care Add public option to health insurance exchanges. Social Security Switch to progressive price indexing for calculating social security benefits. Health Care Turn federal payments for Graduate Medical Education (GME) at teaching hospitals into grant program and index future increases to inflation. Health Care Medical Malpractice reform. Placing a 250k cap on non-punitive damages, 500k cap on punitive damages, 1 yr statute of limitations fir adults, 3 for children and implementing fair share rule would result in savings of $62.4 billion over 10yrs. Medicare Eliminate critical access hospitals, Medicare-dependent hospitals and sole community hospitals programs and end higher payments made to those facilities.
8/13/2012

Option 15.1

$241,200,000,000 $186,600,000,000

Option 22 Option 15.2

$181,000,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 16

$143,900,000,000 $136,600,000,000 $124,800,000,000 $119,000,000,000 $112,000,000,000

Medicare

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 29 Option 28.1 Option 18 Option 30 Option 25

91 92

$112,000,000,000 $92,500,000,000

Option 27 Option 21.3

93

Mandatory Spending Mandatory Spending Mandatory Spending Mandatory Spending Mandatory Spending

$88,500,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 32

94 95 96

$88,000,000,000 $84,600,000,000 $69,400,000,000

Option 12 Option 28.2 Option 17

97

$62,400,000,000

Option 13

98

Mandatory Spending

$62,200,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 24

20110916_debt-reduction-options

pg 9 of 26

Comments

20110916_debt-reduction-options

8/13/2012

pg 10 of 26

Budget Category 99 Mandatory Spending Mandatory Spending

Category Medicare

Description

Savings over 10 Yrs (FY 12 - 21)

$53,400,000,000

Source CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Source Citation

100

101

Mandatory Spending

102

Mandatory Spending Mandatory Spending Mandatory Spending Mandatory Spending

Bar Medigap policies from paying any of the first $550 of an enrollee's cost-sharing liabilities in 2013 and limit coverage to 50% of the next $4,950 in cist sharing. Education Change interest rate structure on federal student and parent loans by tying interest rate on all new loans to the interest rate on 10 year Treasury notes at beginning of academic year in which loan is originated, plus 3 % points. Social Security Gradually change the way social security retirement benefits are calculated by gradually lengthening the worker's average indexed monthly earnings (AIME) from 35 years to 38 years for people who turn 62 in 2014 and beyond. Federal Adjust the ratio of employer/employee contributions to federal Employees employee pension plans to equalize contributions. Medicaid Extend Medicaid drug rebate to dual eligibles in Medicare Part D. Reduce Medicare provider payment rates for services offered under Parts A and Parts B in high cost areas. Many states finance a portion of their Medicaid spending by imposing taxes on the very same health care providers who are paid by the Medicaid program, increasing payments to those providers by the same amount and then using that additional spending to increase their federal match. Restrict and eventually eliminating this practice. Introduce minimum out of pocket requirements for TRICARE for Life program. TFL would not cover first $550 of enrollees cost sharing payments under Medicare and only 50% of next $4,950. Enrollees would not be required to pay more than $3,025 in cost sharing per year. Eliminate income-based subsidies for federal student loan borrowers and better target hardship relief for loan repayment. Require a copayment equal to 10% of total cost for each home health care episode for Medicare beneficiaries. Replace Medicare's current mix of cost sharing requirements with a single combined annual deductible of $550 for all Part A and Part B services, a uniform coinsurance rate of 20% above that deductible with an annual cap of $5,500 on an enrollees total cost-sharing liabilities. Slow growth of federal contributions to the Federal Employees Health Benefits Program by offering voucher for first $5,000 of an individual premium, and $11,000 of a family premium. Index future increases to inflation. (plus $41.9 Bil in Discretionary) Change Medicare by giving individuals who become entitled to Medicare after 2020 a voucher with which to purchase private health insurance. These individuals would no longer receive coverage through the current Medicare program. Federal spending for the proposed vouchers would grow for only three reasons: the prescribed rate of increase in the value of the vouchers, growth in the eligible population, and the aging of the Medicare population over time.
8/13/2012

Option 21.2

$52,000,000,000

Option 11

$51,400,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 31

$51,000,000,000

103

$49,000,000,000

104 105

Medicare Medicaid

$48,000,000,000 $44,000,000,000

The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010. The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010. CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010.

Option 23

106

Mandatory Spending

Veterans

$43,000,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 1

107

Mandatory Spending Mandatory Spending Mandatory Spending

Education

$43,000,000,000

108 109

Medicare Medicare

$40,100,000,000 $32,200,000,000

The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010. CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 20 Option 21.1

110

Mandatory Spending

Federal Employees

$31,350,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 14

111

Mandatory Spending

Medicare

$30,000,000,000

FY 2012 Budget Resolution "The Path to Prosperity: Restoring America's Promise."

20110916_debt-reduction-options

pg 11 of 26

Comments

20110916_debt-reduction-options

8/13/2012

pg 12 of 26

Budget Category 112 Mandatory Spending Mandatory Spending

Category Housing

Description Increase average guarantee FEE-assesed on loans for mortgage backed securities by Fannie Mae and Freddie Mac by 5 basis points, or 20%. Repeal Dodd-Frank financial reform law.

Savings over 10 Yrs (FY 12 - 21)

$26,500,000,000

Source CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) FY 2012 Budget Resolution "The Path to Prosperity: Restoring America's Promise."

Source Citation

Option 9

113

Financial Services

$26,000,000,000

114

Mandatory Spending Mandatory Spending Mandatory Spending

Federal Employees Medicare

115

116

Health Care

117

Mandatory Spending Mandatory Spending

Medicare

118

Education

Base cost of living adjustments for federal civilian and military pensions and veterans benefits on the chained consumer price index. End practice of Medicare providing reimbursements to hospitals and other providers for unpaid deductibles and co-pays owed by beneficiaries. Reform the Medicare Sustainable Growth Rate for physician payment and require the fix to be offset. Freeze payments to physicians until 2020, and direct Center for Medicaid Studies to develop improved formula. Impose Cost Sharing for first 20 days of a stay in a skilled nursing facility under Medicare. Medicare currently covers up to 100 days at a skilled nursing facility. Eliminate subsidized Stafford Loans to graduate students.

$24,000,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010. The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010. CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 26

$23,000,000,000

$22,000,000,000

$21,300,000,000

Option 19

$18,400,000,000

Option 10

119 120

Mandatory Spending Mandatory Spending

Health Care Retirees

121

Mandatory Spending

Federal Employees

122

Mandatory Spending Mandatory Spending Mandatory Spending Mandatory Spending

Retirees

Reduce funding for the State Children's Health Insurance Program (SCHIP) by repealing 2009 eligibility expansion. Transform the Federal Employees Health Benefits (FEHB) program into a defined contribution premium support plan that offers federal employees a fixed subsidy that grows by no more than GDP plus 1 percent each year. Defer Cost of Living Adjustment (COLA) for retirees in the current system until age 62, including for civilian and military retirees who retire well before a conventional retirement age. In place of annual increases, provide a one-time catch-up adjustment at age 62 to increase the benefit to the amount that would have been payable had full COLAs been in effect. Give Pension Benefit Guarantee Corporation power to raise premiums. Reduce funding for family support programs, such as Temporary Assistance for Needy Families (TANF) to FY 2007 levels and index future increases to inflation. Place dual eligibles in Medicaid managed care.

$18,000,000,000 $18,000,000,000

FY 2012 Budget Alternative "Republican Study Committee: Honest Solutions" The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010. The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010.

$17,000,000,000

$16,000,000,000

123

Low Income Programs Medicaid

$14,000,000,000

The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010. FY 2012 Budget Alternative "Republican Study Committee: Honest Solutions" The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010. CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

124

$12,000,000,000

125

Agriculture

Reduce premium subsidy in crop insurance program. Program protects farmers from losses caused by drought, floods, pest infestation, and natural disasters. Fed government pays 60 percent of total premium. Reducing fed government share to 50% would save over $11.8b over 10 yrs.

$11,800,000,000

Option 6

20110916_debt-reduction-options

8/13/2012

pg 13 of 26

Comments

Does not take into account savings due to the bill

Already included in first round of cuts in Budget Control Act.

20110916_debt-reduction-options

8/13/2012

pg 14 of 26

Budget Category 126 Mandatory Spending

Category Agriculture

Description Prohibit new enrollment in Conservation Stewardship Program. CSP gives agricultural producers financial and technical help with conserving and improving soil, water, air, energy and plant and animal life. Farmers enter into 5 year contracts. Letting current contracts expire and prohibiting new enrollment after 2012 would save 10.5 billion over 10 years. Eliminate Trade Adjustment Assistance programs that provide additional unemployment benefits and training assistance to workers who lose their jobs as a result of foreign competition. Reduce portion of a producer's base acreage eligible for direct payments by 20 percent. This would save $9.5b over 10 years. The Affordable Care Act included several policies changing reimbursements for home health providers. The Commission recommends accelerating these changes to incorporate productivity adjustment beginning in 2013 and directing the Secretary of Health and Human Services (HHS) to phase in rebasing the home health prospective payment system by 2015 instead of 2017. Limit enrollment in Conservation Reserve Program. Land owners currently sign 10-15 yr contracts with USDA to in exchange for annual payments and cost-sharing grants aimed at promoting soil conservation and protecting wildlife. Enrollment is capped at 32 million acres, 31 million acres are currently in the program. Prohibiting new enrollments after 2012 would reduce enrollment to 11.9 million acres and save $8.6 billion over 10 yrs. Reduce size of Strategic Petroleum Reserve. Reduce holdings by 10 percent by 2016, then maintain reserve of 650 million barrels. SPR can currently hold 727 million barrels. CBO estimates that selling 75 million barrels of excess oil would generate $700m in revenue for FY 12 and $6b over 5 years. Use the highest five years of earnings to calculate civil service pension benefits for new retirees (CSRS and FERS), rather than the highest three years prescribed under current law, to bring the benefit calculation in line with the private sector standard. Transfer Tennessee Valley Authority's electric utility functions to private company. Lower limits on mortgages guaranteed by Fannie and Freddie to $417,000 for non high costs areas and 625,000 for high cost areas. Eliminate the Market Access Program intended to promote overseas marketing of U.S. agricultural products. Ask states to take responsibility for more of Medicaids administrative costs by eliminating Medicaid payments for administrative costs that are duplicative of funds originally included in the Temporary Assistance for Needy Families (TANF) block grants.
8/13/2012

Savings over 10 Yrs (FY 12 - 21)

$10,549,000,000

Source CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Source Citation

Option 4

127

Mandatory Spending

Trade

$10,000,000,000

FY 2012 Budget Alternative "Republican Study Committee: Honest Solutions"

128

Mandatory Spending Mandatory Spending

Agriculture

$9,500,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010.

Option 7

129

Health Care

$9,000,000,000

130

Mandatory Spending

Agriculture

$8,600,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 5

131

Mandatory Spending

Energy

$6,900,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 3

132

Mandatory Spending

Federal Employees

$5,000,000,000

The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010.

133 134

Mandatory Spending Mandatory Spending Mandatory Spending Mandatory Spending

Energy Housing

$4,000,000,000 $3,500,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) FY 2012 Budget Alternative "Republican Study Committee: Honest Solutions" The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010.

Option 2 Option 8

135

Agriculture

$2,000,000,000

136

Medicaid

$2,000,000,000

20110916_debt-reduction-options

pg 15 of 26

Comments

20110916_debt-reduction-options

8/13/2012

pg 16 of 26

Budget Category 137 Mandatory Spending

Category Energy

Description Allow power marketing administrations, part of the Department of Energy, that generate and sell electricity from federally owned hydroelectric facilities and power plants to raise prices to market rates. Would raise around $200 million in additional revenue each year. Eliminate the Presidential Election Campaign Fund, effectively ending public financing of presidential elections. Eliminate the Foreign Market Development Program used by agricultural trade associations and commodity groups to help promote exports and provide nutritional and technical assistance to other countries. Replace the dollar bill with a dollar coin. Eliminate Fannie Mae and Freddie Mac.

Savings over 10 Yrs (FY 12 - 21)

$2,000,000,000

Source The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010.

Source Citation

138 139

Mandatory Spending Mandatory Spending

Campaign Finance Agriculture

$617,000,000 $350,000,000

FY 2012 Budget Alternative "Republican Study Committee: Honest Solutions" FY 2012 Budget Alternative "Republican Study Committee: Honest Solutions"

140 141

Mandatory Spending Mandatory Spending

Currency Housing

$215,000,000 No figure available.

FY 2012 Budget Alternative "Republican Study Committee: Honest Solutions" FY 2012 Budget Resolution "The Path to Prosperity: Restoring America's Promise."

142

Mandatory Spending

Medicare

143

Mandatory Spending

Health Care

Direct the Center for Medicare Studies (CMS) to design and begin implementation of Medicare payment reform pilots, demonstrations, and programs as rapidly as possible and allow successful programs to be expanded without further congressional action. The Affordable Care Act established the Independent Payment Advisory Board to recommend changes in Medicare payment policies if per-beneficiary Medicare spending grows too quickly. However, the law exempted certain provider groups, most notably hospitals, from any short-term changes from IPABs authority. The Commission recommends eliminating these carveouts.

No figure available.

The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010.

No figure available.

The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010.

144

Mandatory Spending

145

Mandatory Spending

Eliminate payments to states for the Abandoned Mine Land program at the Department of the Interior operates a fund for the reclamation of abandoned coal mines across the United States. Telecommunica Grant the FCC authority to conduct incentive auctions to free up tions spectrum for commercial wireless providers, which the FCC estimates could generate significant mandatory receipts. Federal The federal government charges user FEES or licensing FEES Government - for a variety of products and services it provides to individuals FEES and businesses. These FEES should be indexed for inflation. Postal Service Reverse restrictions that prevent the Postal Service from taking steps to survive such as shifting to five-day delivery and gradually closing down post offices no longer able to sustain a positive cash-flow. Medicare Ask Medicare enrollees to contribute more for the cost of lab tests through deductibles and coinsurance. Health Care Repeal the 2010 Health Care Reform law.

Interior

No figure available.

The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010. The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010. The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010. The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010. National Journal "Super-Committee Health Cuts Would Hit Everyone" Sept, 8, 2011 FY 2012 Budget Alternative "Republican Study Committee: Honest Solutions"

No figure available.

146

Mandatory Spending

No figure available.

147

Mandatory Spending

No figure available.

148

Mandatory Spending Mandatory Spending

$24,000,000,000

149

$677,000,000,000

20110916_debt-reduction-options

8/13/2012

pg 17 of 26

Comments

Does not take into account impact on mortgage rates

Only some Republicans believe repeal will actually SAVE money

20110916_debt-reduction-options 8/13/2012 pg 18 of 26

Budget Category 150 Mandatory Spending

Category

Description Repeal the 2010 Health Care Reform law.

Savings over 10 Yrs (FY 12 - 21)

$210,000,000,000 increase in debt.

Source CBO "Cost Estimate for H.R. 2, Repealing the JobKilling Health Care Law Act" Feb 18, 2011

Source Citation

151

Mandatory Spending

Health Care

Eliminate the Community Living Assistance Services and Supports (CLASS) Act, a voluntary long-term care insurance program enacted as part of the Affordable Care Act (ACA).

76,000,000,000 increase

The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010.

152 153 154 155

Revenue Revenue Revenue Revenue

Taxes Individual Taxes Individual Energy Taxes

Impose a 5% Value Added Tax (VAT) on most goods and services. Limit the tax benefit of itemized deductions to 15%. Establish cap and trade program governing emissions of greenhouse gases in US. Pass "Fairness in Taxation Act" - new tax brackets for income starting at $1 million and ending with a $1 billion bracket. The new brackets would be: $1-10 million: 45%, $10-20 million: 46%, $20-100 million: 47%, $100 million to $1 billion: 48%, $1 billion and over: 49%. Eliminate the deduction for state and local taxes for individuals. Raise all ordinary tax rates, Alternative Minimum Tax (AMT) rates, dividends and capital gains rates by 1%.

$2,500,000,000,000 $1,180,000,000,000 $1,178,900,000,000 $872,500,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) Economic Policy Institute, "The Peoples Budget: A Technical Analysis" April, 2011

Option 27 Option 7 Option 35

156 157

Revenue Revenue

Taxes Individual Taxes Individual

$862,200,000,000 $715,000,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 5.1 Option 1.3

158

Revenue

Taxes Individual

Raise all ordinary tax rates and Altrenative Minimum Tax (AMT) rates by 1%.

$702,400,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 1.2

159

Revenue

Taxes Individual

Allow Bush-era tax cuts for families earning over $250,000 and individuals earning $200,0000 expire as scheduled at end of 2012.

$700,000,000,000

New York Times "The Truth About Taxes" August 6, 2011 CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)
Option 31

160

Revenue

161 162

Revenue Revenue

Taxes - Health Replace .9% Hospital Insurance (HI) surtax on earnings over Care $200,000 for an individual and $250,000 for a family with a !5 increase in the total HI tax on all earnings. Taxes Limit the deduction for state and local taxes for individuals to Individual 2% of adjusted gross income. Taxes Raise all tax rates on ordinary income by 1%. Individual

$651,000,000,000

$629,300,000,000 $480,400,000,000

Option 5.2 Option 1.1

163

Revenue

20110916_debt-reduction-options

Social Security Increase maximum taxable earning for social security payroll tax to $170,000. Most of these savings would be off budget.

$456,700,000,000

8/13/2012

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 16

pg 19 of 26

Comments CBO projects repealing the Health Care Reform law will increase the deficit by $210 billion over the first decade. Repealing the CLASS Act would increase the deficit by $76 billion over the next decade, but some believe that savings would be found outside of the 10 year window.

(CBO's figures assume tax rates revert to preBush levels at end of 2012.) (CBO's figures assume tax rates revert to preBush levels at end of 2012.)

(CBO's figures assume tax rates revert to preBush levels at end of 2012.)
20110916_debt-reduction-options 8/13/2012 pg 20 of 26

Budget Category 164 Revenue

Category Taxes Individual Taxes Individual

Description Tax social security and railroad retirement benefits in the same way that distributions from defined-benefit pensions are taxed.

Savings over 10 Yrs (FY 12 - 21)

$438,400,000,000

Source CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Source Citation

Option 11

165

Revenue

166

Revenue

167

Revenue

Eliminate existing taxes on income replacement benefits like unemployment benefits, workers compensation and disability benefits, but include the value of several taxes, premiums and other contributions paid by the employer in the employee's taxable income. Taxes - Health Accelerate implementation of excise tax on high cost health care Care coverage to 2014, instead of 2018 as in current law. Starting in 2014, implement 40% excise tax on qualifying contributions that exceed $21,000 a year for family coverage and $8,200 for individual. Health Care Repeal the individual health care mandate.

$311,500,000,000

Option 8

$309,500,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 30

$282,000,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) Economic Policy Institute, "The Peoples Budget: A Technical Analysis" April, 2011 CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 32

168

Revenue

Taxes Business Taxes Individual Taxes Individual Taxes Individual Taxes Business Taxes Taxes Taxes Individual

Extend the period for depreciating costs of certain investments from 3,5,7,10, 15 or 20 years to 4,8,11,20 30 or 39 years. Include investment income from life insurance and annuities in taxable income for individuals. Limit deductions for charitable giving to 2% of adjusted gross income. Gradually eliminate the mortgage interest deduction by 2024. Repeal the deduction for domestic production activities (oil and gas) Allow Medicare Part D to negotiation pharmaceutical prices. Replace the tax exclusion for interest income on state and local bonds with a direct 15% subsidy to the issuer. Raise the top three ordinary tax rates by 1%.

$276,000,000,000

Option 22

169 170 171 172 173 174 175

Revenue Revenue Revenue Revenue Revenue Revenue Revenue

$259,500,000,000 $219,000,000,000 $214,600,000,000 $163,100,000,000 $157,900,000,000 $142,700,000,000 $139,100,000,000

Option 9 Option 6 Option 4 Option 23

Option 13 Option 1.6

176 177

Revenue Revenue

Taxes Individual Taxes Individual

Eliminate the child tax credit. Raise the top two ordinary tax rates by 1%.

$116,700,000,000 $115,000,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 14 Option 1.5

178 179 180 181

Revenue Revenue Revenue Revenue

Taxes Business Taxes Business Social Security Taxes

Tax foreign income of US corporations as it is earned, not when repatriated to USA. Increase all corporate income tax rates by 1% Expand social security coverage to newly hired state and local government employees hired after December 31, 2011. Use chained consumer price index (CPI-U) to adjust tax brackets in the tax code.
8/13/2012

$114,200,000,000 $100,600,000,000 $96,000,000,000 $86,900,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 25 Option 18 Option 17 Option 3

20110916_debt-reduction-options

pg 21 of 26

Comments

Only Republicanms think this will save money

(CBO's figures assume tax rates revert to preBush levels at end of 2012.) (CBO's figures assume tax rates revert to preBush levels at end of 2012.)

20110916_debt-reduction-options

8/13/2012

pg 22 of 26

Budget Category 182 Revenue

Category Taxes Individual

Description Raise the top ordinary tax rate by 1%.

Savings over 10 Yrs (FY 12 - 21)

$83,900,000,000

Source CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Source Citation

Option 1.4

183

Revenue

Taxes Business

Exempt "active" dividends that U.S. corporations earn from the business operations of their foreign subsidies or foreign branches from U.S. taxation. All other foreign income would be taxed as it is earned. Allow for foreign tax credits to offset any foreign income that is still subject to U.S. taxation. No longer allow overhead expenses allocated to foreign income to be deductible from U.S. income. Impose annual FEE of .15% on banks, thrifts, brokers, security dealers and US holding companies with assets of more than $50 billion. Repeal Last In, First Out (LIFO) accounting method. Fully eliminate the Volumetric Ethanol Excise Tax Credit (VEETC) and fully repeal the tariff on imported ethanol. Increase excise taxes for all alcohol to $16 per proof gallon (or 25 cents per ounce of alcohol), an increase from $13.50 per proof gallon for spirits, 10 cents per ounce of alcohol for beer and 8 cents per ounce of alcohol for wine. Eliminate the title passage rule and require corporations to allocate income for the purpose of taxation on the basis of where the economic activity actually occurs. Raise tax rates on capital gains by 2%. Eliminate tax preferences for education expenses including the Hope Tax Credit, the Lifetime Learning tax credit. Reduce limits on contributions to retirement plans to $14,850 for 401(k) plans and $4500 for IRA's. Set the corporate income tax rate at 35% for all corporations. Tax "carried interest" as ordinary income (impacts only Hedge Fund managers and treats their salaries like everyone else) Eliminuate tax breaks and subsidies for oil companies with assets of over $1 billion a year as proposed in the "Close Big Oil Tax Loopholes Act". Replace the expensing of exploration and development costs for oil, gas and minerals with the standard capitalization rules set in Tax Reform Act of 1986. Open protected federal lands for oil and natural gas production including; Arctic National Wildlife Refuge (ANWR), Outer Continental Shelf (OCS), Gulf of Mexico, and Rocky Mountains. This would generate $5b over 10 years in auction proceeds. Eliminate a tax loophole for corporate jet owners that allows corporate jets to be depreciated over a five-year period rather than the seven-year period required for commercial ones. Increase excise taxes on motor fuels by 25 cents per gallon.
8/13/2012

$76,200,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 26

184

Revenue

Financial Services Taxes Business Taxes Business Taxes Business

$70,900,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) Reuters "Senate vote marks start of end for ethanol subsidies" June 16, 2011 CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 33

185 186

Revenue Revenue

$70,000,000,000 $60,000,000,000

Option 20

187

Revenue

$59,900,000,000

Option 29

188

Revenue

Taxes Business Taxes Individual Taxes Individual Taxes Individual Taxes Business Taxes Individual Taxes Business Taxes Business Energy

$53,700,000,000

CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) Center for American Progress "Ending Big Oil's Tax Holiday" May 17, 2011 CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11) FY 2012 Budget Alternative "Republican Study Committee: Honest Solutions"

Option 24

189 190 191 192 193

Revenue Revenue Revenue Revenue Revenue

$48,500,000,000 $47,700,000,000 $45,900,000,000 $24,400,000,000 $21,400,000,000

Option 2 Option 15 Option 12 Option 19 Option 10

194

Revenue

$21,000,000,000

195

Revenue

$10,000,000,000

Option 21

196

Revenue

$5,000,000,000

197

Revenue

Taxes Business

$3,000,000,000

198

Taxes Individual 20110916_debt-reduction-options Revenue

$291,000,000

ABC News "Behind the Scenes of the Deficit Negotiations: $400B in Tax Hikes, $1T in Spending Cuts" June 30, 2011 CBO report "Reducing the Deficit: Spending and Revenue Options" (Mar 11)

Option 28

pg 23 of 26

Comments (CBO's figures assume tax rates revert to preBush levels at end of 2012.)

20110916_debt-reduction-options

8/13/2012

pg 24 of 26

Budget Category 199 Revenue

Category Taxes Business Taxes Individual

Description Eliminate subsidies for wool and mohair producers.

Savings over 10 Yrs (FY 12 - 21)

$40,000,000

Source FY 2012 Budget Alternative "Republican Study Committee: Honest Solutions" FY 2012 Budget Resolution "The Path to Prosperity: Restoring America's Promise."

Source Citation

200

Revenue

Cut top income tax rate from 35% to 25% and eliminate certain tax expenditures.

No figure provided.

20110916_debt-reduction-options

8/13/2012

pg 25 of 26

Comments

20110916_debt-reduction-options

8/13/2012

pg 26 of 26