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Budget
Category
Category Description Savings over 10
Yrs (FY 12 - 21)
Source Source Citation
1 Discretionary
Spending
Non-Defense
Spending
Reduce non-defense discretionary spending by 1% each year for
next 10 years.
$1,082,000,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 14.1
2 Discretionary
Spending
Defense Reduce defense appropriations by 1% annually for next 10 years. $862,000,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 1.1
3 Discretionary
Spending
Non-Defense
Spending
Freeze non-defense discretionary spending at FY 11 levels. $749,900,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 14.2
4 Discretionary
Spending
Defense Freeze defense appropriations at FY 11 level. $611,000,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 1.2
5 Discretionary
Spending
Non-Defense
Spending
Limit rate of growth in non-defense discretionary spending to
1.2% a year for next 10 years.
$378,400,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 14.3
6 Discretionary
Spending
Defense Limit rate of growth in DOD appropriations to 1.4 percent a
year.
$286,000,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 1.3
7 Discretionary
Spending
Veterans Prevent military retirees a nd 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 t he cost of providing benefits.
$111,100,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 4
8 Discretionary
Spending
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.
$108,100,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 20
9 Discretionary
Spending
Federal
Employees
Reduce annual salary increase by .5% each year for Federal
civilian employees.
$50,710,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 37
10 Discret ionary
Spending
Transportation Eliminate intercity rail subsidies, including Amtrak and high
speed rail service.
$44,700,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 23
11 Discret ionary
Spending
Research Reduce NIH funding to FY 03 levels a nd only allow future
growth to be tied ton inflation.
$42,750,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 33.1
12 Discret ionary
Spending
Federal
Employees
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 $31.35 Bil in Mandatory)
$41,900,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 14
13 Discret ionary
Spending
Infrastructure Eliminate federal gra nts to wastewater and drinking water
infrastructure (Clean Water Act and Safe Drinking Water act
state revolving funds)
$36,530,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 17
14 Discret ionarySpending
Defense Replace Joint Strike Fighter Program with F-16's and F/A-18's. $36,100,000,000 CBO report "Reducing the Deficit: Spending andRevenue Options" (Mar 11)
Option 7
15 Discret ionary
Spending
Veterans Limit access for veterans seeking medical care from the
Department of Veterans Affairs by closing enrollment for
priority groups 7 and 8 a nd cancel the enrollment of all veterans
currently in those groups.
$34,000,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 35
16 Discret ionary
Spending
Veterans Raise enrollment FEES, copayments and deductibles for military
retirees under age 65 who choose to use TRICARE.
$29,700,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 3
17 Discret ionary
Spending
Housing Increase payments by tenants in federally assisted housing from
30% of adjusted gross family income to 35% by 2016.
$26,440,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 34
18 Discret ionary
Spending
Veterans Raise copayments for pharmaceuticals under TRICARE. $26,000,000,0 00 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 5
19 Discret ionary
Spending
Transportation Eliminate the New Starts prog ram that funds expansion of rail
and other mass-transit systems and the Small Starts Programthat provides grants for public transportation capital projects.
$21,900,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 24
20 Discret ionary
Spending
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.
$20,800,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 22
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Budget
Category
Category Description Savings over 10
Yrs (FY 12 - 21)
Source Source Citation
21 Discret ionary
Spending
Defense Cancel further development of the Navy and Marine Corps' Jo int
Strike Fighters and Replace Aircraft with F/A-18E/Fs currently
in production.
$18,000,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 8
22 Discret ionary
Spending
Defense Cap increases in military pay at .5 percent below increase in the
employment cost index.
$17,500,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 2
23 Discret ionary
Spending
Education 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 Centerprogram.
$16,900,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 27
24 Discret ionary
Spending
Research Restrict growth in NIH funding to 1% each year. $13,280,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 33.2
25 Discret ionary
Spending
Federal
Employees
Reduce size of federal workforce by 10% through at trition (this $
is thru 2015)
$13,200,000,000 The Moment of Truth: Report of the National
Commission on Fiscal Responsibility and Reform,
December 2010.
26 Discret ionary
Spending
Education Restrict access to Pell Grants by making students with an
Expected Family Contribution (EFC) over $2500 ineligible for a
Pell Grant.
$12,640,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 28
27 Discret ionary
Spending
National Service Eliminate funding for National Community Service Programs
including AmeriCorps.
$12,120,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 29
28 Discret ionary
Spending
Food Safety Finance all mandatory federal inspections of meat, poultry and
egg products with FEES paid by processing facilities.
$11,600,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 32
29 Discret ionary
Spending
Transportation 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.
$11,610,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 21
30 Discret ionary
Spending
Defense 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.
$9,100,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 6
31 Discret ionary
Spending
Public Safety 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 .
$9,042,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 36
32 Discret ionary
Spending
National Service Eliminate the Senior Community Service Employment Program
that funds part time jobs for low-income people over age 5 5.
$9,041,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 30
33 Discret ionary
Spending
Energy Reduce funding for energy efficiency and renewable energy
research, development and demonstration by 25% below FY 11
levels.
$7,628,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 16.3
34 Discret ionary
Spending
Defense Delay initial fielding of Army's Ground Combat Vehicle until
2025.
$7,000,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 11
35 Discret ionary
Spending
Economic
Development
Eliminate wealthier "Entitlement Communities" from Community
Development Block Grant Program (CDBG) and direct funding
to needier communities.
$6,123,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 26
36 Discret ionary
Spending
Arts and
Humanities
Reducing funding for NEA, NEH, Corporation for Public
Broadcasting, National Gallery of Art and JFK Center forPerforming Arts by 25% and freeze future spending
$5,318,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 31
37 Discret ionary
Spending
Defense End development of the Medium Extended Air Defense System
(MEADS).
$4,340,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 12
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Budget
Category
Category Description Savings over 10
Yrs (FY 12 - 21)
Source Source Citation
38 Discret ionary
Spending
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 t hrough
appropriations.
$4,326,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 18
39 Discret ionary
Spending
Trade Eliminate the International Trade Administration's Trade
Promotion Activities designed to increase competitiveness of U.S.
industries and increase exports.
$3,824,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 19
40 Discret ionary
Spending
Energy Reduce funding for nuclear energy research, development and
demonstration by 25% below FY 11 levels.
$3,720,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 16.2
41 Discret ionary
Spending
Infrastructure Create state revolving funds to finance rural water and waste
disposal.
$3,289,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 25
42 Discret ionary
Spending
Energy Reduce funding for fossil energy research, development and
demonstration by 25% below FY 11 levels.
$3,245,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 16.1
43 Discret ionary
Spending
Energy Eliminate Dept. of Energy's grants to states for energy
conservation and weatherization.
$2,750,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 15
44 Discret ionary
Spending
Defense Cancel the Expeditionary Fighting Vehicle program, but provide
stream of research and development funds to enable Mar ine
Corps to come up with alternative to the EFV.
$2,490,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 10
45 Discret ionary
Spending
FEES Charge transaction FEES to fund the Commodity Futures
Trading Commission.
$1,998,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 38.7
46 Discret ionary
Spending
FEES Charge FEES to offset the cost of federal rail safety activities. $1,882,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 38.6
47 Discret ionary
Spending
Defense Reduce number of aircraft carriers to 10 (from 11) and navy air
wings to 9 (from 10)
$1,810,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 9
48 Discret ionary
Spending
Defense End the Precision Tracking Space System being designed by the
Missile Defense Agency.
$1,580,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 13
49 Discret ionary
Spending
Federal
Government
Reduce federal printing, travel and vehicle budgets by 20%. (this
$ is thru 2015)
$1,100,000,000 The Moment of Truth: Report of the National
Commission on Fiscal Responsibility and Reform,
December 2010.
50 Discret ionary
Spending
FEES Co llect new FEES for t he Foo d and Drug Administratio n. $ 84 3, 00 0, 00 0 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 38.9
51 Discret ionary
Spending
FEES Impose FEES that recover the costs of pesticide and new-
chemical registration.
$816,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 38.5
52 Discret ionary
Spending
FEES Increase FEES for permits issued by Army Corps of Engineers. $554,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 38.1
53 Discret ionary
Spending
FEES Increase registration FEES for the Federal Aviation Commission. $530,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 38.8
54 Discret ionary
Spending
FEES Authorize maintenance and location FEES for hardrock mining
on federal lands.
$525,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 38.2
55 Discret ionary
Spending
FEES Impose FEES on users of the St. Lawrence Seaway. $354,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 38.4
56 Discret ionary
Spending
FEES Use s tat e formula s t o se t grazing FEES fo r federa l la nds. $ 16 0, 00 0, 00 0 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 38.3
57 Discret ionary
Spending
Federal
Government
Instruct General Services Administration to loosen restrictions
making it easier to sell excess federal property.
$100,000,000 The Moment of Truth: Report of the National
Commission on Fiscal Responsibility and Reform,
December 2010.
58 Discret ionary
Spending
Health Care Eliminate funding for Title X family planning. $3,180,000,000 Republican Study Committee "Spending Reduction Act"
Jan 2011
59 Discret ionary
Spending
Interior Eliinate funding for Save America's Trea sures Progra m, a public-
private effort to protect threatened cultural and historical
treasures in America.
$250,000,000 Republican Study Committee "Spending Reduction Act"
Jan 2011
60 Discret ionary
Spending
Foreign Aid Elimina te funding fo r the Int erna tio nal Fund fo r Ireland. $ 17 0, 00 0, 00 0 Republican Study Committee "Spending Reduction Act"
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Budget
Category
Category Description Savings over 10
Yrs (FY 12 - 21)
Source Source Citation
61 Discret ionary
Spending
Low Income
Programs
Eliminate the Legal Services Corporation. $4,200,000,000 Republican Study Committee "Spending Reduction Act"
Jan 2011
62 Discret ionary
Spending
Interior 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.
$2,400,000,000 Republican Study Committee "Spending Reduction Act"
Jan 2011
63 Discret ionary
Spending
Education Eliminate Exchange Programs for Alaska Natives, Native
Hawaiians, and their Historic Whaling and Trading Partners.
$90,000,000 Republican Study Committee "Spending Reduction Act"
Jan 2011
64 Discret ionary
Spending
Jobs Eliminate t he Economic Development Administration which
provides various grants, loans, and other subsidies for economicdevelopment to state and local governments.
$2,930,000,000 Republican Study Committee "Spending Reduction Act"
Jan 2011
65 Discret ionary
Spending
Energy Eliminate the The Energy Star Program, a joint initiative of the
Department of Energy (DOE) and the Environmental Protection
Agency (EPA).
$520,000,000 Republican Study Committee "Spending Reduction Act"
Jan 2011
66 Discret ionary
Spending
Foreign Aid Eliminate the U.S. Agency for International Development
(USAID).
$13,900,000,000 Republican Study Committee "Spending Reduction Act"
Jan 2011
67 Discret ionary
Spending
District of
Columbia
Elimina te general assist ance to the Dist rict of Co lumbia. $ 2, 10 0, 00 0,0 00 Republican Study Committee "Spending Reduction Act"
Jan 2011
68 Discret ionary
Spending
District of
Columbia
Eliminate federal funding to the Washington Metropolitan Area
Transit Authority.
$1,500,000,000 Republican Study Committee "Spending Reduction Act"
Jan 2011
69 Discret ionary
Spending
Foreign Aid Eliminate funding to the United Nations Intergovernmental
Panel on Climate Change (IPCC)
$125,000,000 Republican Study Committee "Spending Reduction Act"
Jan 2011
70 Discret ionarySpending
Foreign Aid Cut funding for foreign aid by 50%. The U.S. spent $33b onforeign aid in Fiscal Year 2011, around 1% of the federal budget.
$115,000,000,000 Reuters "Obama's "smart power" plan risks death of1,000 cuts" Sept 7, 2011
71 Discret ionary
Spending
Housing Eliminate the HOPE VI program that provides grants to public
housing agencies to demolish and rebuild public housing units.
$2,500,000,000 Republican Study Committee "Spending Reduction Act"
Jan 2011
72 Discret ionary
Spending
Education Eliminate federal funding to the Woodrow Wilson Center for
International Scholars.
$200,000,000 Republican Study Committee "Spending Reduction Act"
Jan 2011
73 Discret ionary
Spending
Jobs Eliminate federal funding for t he Manafacturing Extension
Partnership that helps small and mid-sized U.S. manufacturers
create and retain jobs
$1,250,000,000 Republican Study Committee "Spending Reduction Act"
Jan 2011
74 Discret ionary
Spending
Jobs Eliminate the Appalachian Regional Commission that promotes
economic development in 9 states.
$760,000,000 Republican Study Committee "Spending Reduction Act"
Jan 2011
75 Discret ionarySpending
Energy Eliminate funding for all applied research at t he Department ofEnergy.
$12,700,000,000 Republican Study Committee "Spending Reduction Act"Jan 2011
76 Discret ionary
Spending
Energy Eliminate the FreedomCAR and fuel partnership program
provides funding for research on fuel cell technology.
$2,000,000,000 Republican Study Committee "Spending Reduction Act"
Jan 2011
77 Discret ionary
Spending
Agriculture Eliminate the U.S. Department of Agriculture's Sugar Program
that maintains price controls by loaning money to sugar
producers and, if necessary, direc tly purchasing sugar during
periods of low prices to raise the price to preset levels.
$140,000,000 Republican Study Committee "Spending Reduction Act"
Jan 2011
78 Mandatory
Spending
Iraq /
Afghanistan
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.
$1,600,000,000,000 Economic Policy Institute, "The Peoples Budget: A
Technical Analysis" April, 2011
79 Mandatory
Spending
Medicaid Convert the federal share of Medicaid spending into a block
grant progra m and index future spending to inflation.
$750,000,000,000 FY 2012 Budget Resolution "The Path to Prosperity:
Restoring America's Promise."
80 Mandatory
Spending
Federal
Employees
Freeze federal employee pay through 2015 and require federal
employees to pay for half of the defined benefit they
receive at retirement.
$375,000,000,000 FY 2012 Budget Resolution "The Path to Prosperity:
Restoring America's Promise."
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Budget
Category
Category Description Savings over 10
Yrs (FY 12 - 21)
Source Source Citation
81 Mandatory
Spending
Low Income
Programs
Cap the Supplemental Nutrition Assistance Program (SNAP) at
FY 2007 levels.
$350,000,000,000 FY 2012 Budget Alternative "Republican Study
Committee: Honest Solutions"
82 Mandatory
Spending
Medicaid Convert federal share of Medicaid payments for long term care
services into block grant and index future increases to
employment cost index.
$287,400,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 15.1
83 Mandatory
Spending
Medicare Gradually raise the basic premium for Medicare Part B from
25% to 35% for enrollees over 65 over a 5 year period.
$241,200,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 22
84 Mandatory
Spending
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 t he number of aged, blind,and disabled people enrolled in Medicaid.
$186,600,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 15.2
85 Mandatory
Spending
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.
$181,000,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 16
86 Mandatory
Spending
Social Security Raise earliest social security eligibility age to 64 by 2025. $143,900,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 29
87 Mandatory
Spending
Social Security Switch to pure price indexing for calculating social security
benefits.
$136,600,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 28.1
88 Mandatory
Spending
Medicare Raise Medicare eligibility age to 67. $124,800,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 18
89 Mandatory
Spending
Social Security Raise full social security retirement age to 70. $119,000,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 30
90 Mandatory
Spending
Medicare 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.
$112,000,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 25
91 Mandatory
Spending
Social Security Base cost of living adjustments for social security on chained
consumer price index.
$112,000,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 27
92 Mandatory
Spending
Medicare Replace Medicare's current mix of cost sharing requirements
with a single combined annual deductible of $550 for a ll 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.
$92,500,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 21.3
93 Mandatory
Spending
Social Security Change the way social security retirement benefits are calculated
by applying progressive benefit formula to each year of indexed
earnings.
$88,500,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 32
94 Mandatory
Spending
Health Care Add public option to health insurance exchanges. $88,000,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 12
95 Mandatory
Spending
Social Security Switch to progressive price indexing for calculating social
security benefits.
$84,600,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 28.2
96 Mandatory
Spending
Health Care Turn federal payments for Graduate Medical Education (GME)
at teaching hospitals into gra nt program and index future
increases to inflation.
$69,400,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 17
97 Mandatory
Spending
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 sharerule would result in savings of $62.4 billion over 10yrs.
$62,400,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 13
98 Mandatory
Spending
Medicare Eliminate critical access hospitals, Medicare -dependent hospitals
and sole community hospitals programs and end higher payments
made to those facilities.
$62,200,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 24
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Budget
Category
Category Description Savings over 10
Yrs (FY 12 - 21)
Source Source Citation
99 Mandatory
Spending
Medicare 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.
$53,400,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 21.2
100 Mandatory
Spending
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.
$52,000,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 11
101 Mandatory
Spending
Social Security Gradually change the way social security re tirement benefits are
calculated by gradually lengthening the worker's average
indexed monthly earnings (AIME) from 35 years to 38 years forpeople who turn 62 in 2014 and beyond.
$51,400,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 31
102 Mandatory
Spending
Federal
Employees
Adjust the ratio of employer/employee contributions to federal
employee pension plans to equalize contributions.
$51,000,000,000 The Moment of Truth: Report of the National
Commission on Fiscal Responsibility and Reform,
December 2010.
103 Mandatory
Spending
Medicaid Extend Medicaid drug rebate to dual eligibles in Medicare Part
D.
$49,000,000,000 The Moment of Truth: Report of the National
Commission on Fiscal Responsibility and Reform,
December 2010.
104 Mandatory
Spending
Medicare Reduce Medicare provider payment rates for services offered
under Parts A and Parts B in high cost areas.
$48,000,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 23
105 Mandatory
Spending
Medicaid 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 a mount and then using that additionalspending to increase their federal match. Restrict and
eventually eliminating this practice .
$44,000,000,000 The Moment of Truth: Report of the National
Commission on Fiscal Responsibility and Reform,
December 2010.
106 Mandatory
Spending
Veterans Introduce minimum out of pocket requirements for TRICARE
for Life program. TFL would not cover first $550 of enrollees
cost sharing payments under Medicare a nd only 50% of next
$4,950. Enrollees would not be required to pay more than $3,025
in cost sharing per year.
$43,000,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 1
107 Mandatory
Spending
Education Eliminate income-based subsidies for federal student loan
borrowers and better target hardship relief for loan repayment.
$43,000,000,000 The Moment of Truth: Report of the National
Commission on Fiscal Responsibility and Reform,
December 2010.
108 Mandatory
Spending
Medicare Require a copayment equal to 10% of total cost for each home
health care episode for Medicare beneficiaries.
$40,100,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 20
109 MandatorySpending MedicareReplace Medicare's current mix of cost sharing requirementswith a single combined annual deductible of $550 for a ll 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.
$32,200,000,000 CBO report "Reducing the Deficit: Spending andRevenue Options" (Mar 11)
Option 21.1
110 Mandatory
Spending
Federal
Employees
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)
$31,350,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 14
111 Mandatory
Spending
Medicare 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.
$30,000,000,000 FY 2012 Budget Resolution "The Path to Prosperity:
Restoring America's Promise."
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Comments
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Budget
Category
Category Description Savings over 10
Yrs (FY 12 - 21)
Source Source Citation
112 Mandatory
Spending
Housing Increase average guarantee FEE-assesed on loans for mortgage
backed securities by Fannie Mae and Freddie Mac by 5 basis
points, or 20%.
$26,500,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 9
113 Mandatory
Spending
Financial
Services
Repeal Dodd-Frank financial reform law. $26,000,000,000 FY 2012 Budget Resolution "The Path to Prosperity:
Restoring America's Promise."
114 Mandatory
Spending
Federal
Employees
Base cost of living adjustments for federal c ivilian and military
pensions and veterans benefits on the chained consumer price
index.
$24,000,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 26
115 Mandatory
Spending
Medicare End practice of Medicare providing reimbursements to hospitals
and other providers for unpaid deductibles and co-pays owed by
beneficiaries.
$23,000,000,000 The Moment of Truth: Report of the National
Commission on Fiscal Responsibility and Reform,
December 2010.
116 Mandatory
Spending
Health Care 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 M edicaid Studies to
develop improved formula.
$22,000,000,000 The Moment of Truth: Report of the National
Commission on Fiscal Responsibility and Reform,
December 2010.
117 Mandatory
Spending
Medicare 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.
$21,300,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 19
118 Mandatory
Spending
Education Eliminate subsidized Stafford Loans to graduate students. $18,400,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 10
119 Mandatory
Spending
Health Care Reduce funding for the State Children's Health Insurance
Program (SCHIP) by repealing 200 9 eligibility expansion.
$18,000,000,000 FY 2012 Budget Alternative "Republican Study
Committee: Honest Solutions"
120 Mandatory
Spending
Retirees 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.
$18,000,000,000 The Moment of Truth: Report of the National
Commission on Fiscal Responsibility and Reform,
December 2010.
121 Mandatory
Spending
Federal
Employees
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 thatwould have been payable had full COLAs been in effect.
$17,000,000,000 The Moment of Truth: Report of the National
Commission on Fiscal Responsibility and Reform,
December 2010.
122 Mandatory
Spending
Retirees Give Pension Benefit Guarantee Corporation power to raise
premiums.
$16,000,000,000 The Moment of Truth: Report of the National
Commission on Fiscal Responsibility and Reform,
December 2010.
123 Mandatory
Spending
Low Income
Programs
Reduce funding for family support programs, such as Temporary
Assistance for Needy Families (TANF) to FY 2007 levels and
index future increases to inflation.
$14,000,000,000 FY 2012 Budget Alternative "Republican Study
Committee: Honest Solutions"
124 Mandatory
Spending
Medicaid Place dual eligibles in Medicaid managed care. $12,000,000,000 The Moment of Truth: Report of the National
Commission on Fiscal Responsibility and Reform,
December 2010.
125 Mandatory
Spending
Agriculture Reduce premium subsidy in crop insurance program. Progra m
protects farmers from losses caused by drought, floods, pest
infestation, and natural disasters. Fed go vernment pays 60percent of tota l premium. Reducing fed government share to
50% would save over $11.8b over 10 yrs.
$11,800,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 6
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Comments
Does not take into
account savings due to
the bill
Already included in first
round of cuts in Budget
Control Act.
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Budget
Category
Category Description Savings over 10
Yrs (FY 12 - 21)
Source Source Citation
126 Mandatory
Spending
Agriculture 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 contrac ts expire and prohibiting new enrollment after
2012 would save 10.5 billion over 10 years.
$10,549,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 4
127 Mandatory
Spending
Trade Eliminate Trade Adjustment Assistance programs that provide
additional unemployment benefits and training a ssistance to
workers who lose their jobs as a result of fore ign competition.
$10,000,000,000 FY 2012 Budget Alternative "Republican Study
Committee: Honest Solutions"
128 Mandatory
Spending
Agriculture Reduce portion of a producer's base acreage eligible for direct
payments by 20 percent. This would save $9.5b over 10 years.
$9,500,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 7
129 Mandatory
Spending
Health Care 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.
$9,000,000,000 The Moment of Truth: Report of the National
Commission on Fiscal Responsibility and Reform,
December 2010.
130 Mandatory
Spending
Agriculture Limit enrollment in Conservation Reserve Prog ram. Land
owners currently sign 10-15 yr contracts with USDA to in
exchange for a nnual payments and cost-sharing gra nts 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.
$8,600,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 5
131 Mandatory
Spending
Energy Reduce size of Strategic Petroleum Reserve. Reduce holdings by
10 percent by 20 16, 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.
$6,900,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 3
132 Mandatory
Spending
Federal
Employees
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.
$5,000,000,000 The Moment of Truth: Report of the National
Commission on Fiscal Responsibility and Reform,December 2010.
133 Mandatory
Spending
Energy Transfer Tennessee Valley Authority's electr ic utility functions to
private co mpany.
$4,000,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 2
134 Mandatory
Spending
Housing Lower limits on mortgages guaranteed by Fannie and Freddie to
$417,000 for non high costs areas and 625,000 for high cost
areas.
$3,500,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 8
135 Mandatory
Spending
Agriculture Eliminate the Ma rket Access Program intended to promote
overseas marketing of U.S. agricultural products.
$2,000,000,000 FY 2012 Budget Alternative "Republican Study
Committee: Honest Solutions"
136 Mandatory
Spending
Medicaid Ask states to take responsibility for more of Medicaids
administrative costs by e liminating Medicaid payments for
administrative cost s that are duplicative of funds originally
included in the Temporary Assistance for Needy Families
(TANF) block grants.
$2,000,000,000 The Moment of Truth: Report of the National
Commission on Fiscal Responsibility and Reform,December 2010.
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Comments
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S Ci i
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Budget
Category
Category Description Savings over 10
Yrs (FY 12 - 21)
Source Source Citation
137 Mandatory
Spending
Energy 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.
$2,000,000,000 The Moment of Truth: Report of the National
Commission on Fiscal Responsibility and Reform,
December 2010.
138 Mandatory
Spending
Campaign
Finance
Eliminate the Presidential Election Campaign Fund, effectively
ending public financing of presidential elections.
$617,000,000 FY 2012 Budget Alternative "Republican Study
Committee: Honest Solutions"
139 Mandatory
Spending
Agriculture Eliminate the Foreign Market Development Program used by
agricultural trade asso ciations and commodity groups to help
promote exports and provide nutritional and technical assistance
to other countries.
$350,000,000 FY 2012 Budget Alternative "Republican Study
Committee: Honest Solutions"
140 Mandatory
Spending
Currency Replace the dollar bill with a dollar coin. $215,000,000 FY 2012 Budget Alternative "Republican Study
Committee: Honest Solutions"
141 Mandatory
Spending
Housing Eliminate Fannie Mae and Freddie Mac. No figure available. FY 2012 Budget Resolution "The Path to Prosperity:
Restoring America's Promise."
142 Mandatory
Spending
Medicare 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.
No figure available. The Moment of Truth: Report of the National
Commission on Fiscal Responsibility and Reform,
December 2010.
143 Mandatory
Spending
Health Care 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 carve-
outs.
No figure available. The Moment of Truth: Report of the National
Commission on Fiscal Responsibility and Reform,
December 2010.
144 Mandatory
Spending
Interior 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.
No figure available. The Moment of Truth: Report of the National
Commission on Fiscal Responsibility and Reform,
December 2010.
145 Mandatory
Spending
Telecommunica
tions
Grant the FCC authority to conduct incentive auctions to free up
spectrum for commercial wireless providers, which the FCC
estimates could generate significant mandatory receipts.
No figure available. The Moment of Truth: Report of the National
Commission on Fiscal Responsibility and Reform,
December 2010.
146 Mandatory
Spending
Federal
Government -
FEES
The federal government charges user FEES or licensing FEES
for a variety o f products and services it provides to individuals
and businesses. These FEES should be indexed for inflation.
No figure available. The Moment of Truth: Report of the National
Commission on Fiscal Responsibility and Reform,
December 2010.
147 Mandatory
Spending
Postal Service Reverse restrictions that prevent the Postal Service from taking
steps to survive such a s shifting to five-day delivery and
gradually closing down post offices no longer able to sustain a
positive cash-flow.
No figure available. The Moment of Truth: Report of the National
Commission on Fiscal Responsibility and Reform,
December 2010.
148 Mandatory
Spending
Medicare Ask Medicare enrollees to contribute more for the cost of lab
tests through deductibles and coinsurance.
$24,000,000,000 National Journal "Super-Committee Health Cuts Would
Hit Everyone" Sept, 8, 2011
149 Mandatory
Spending
Health Care Repeal the 2010 Health Care Reform law. $677,000,000,000 FY 2012 Budget Alternative "Republican Study
Committee: Honest Solutions"
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Comments
Does not take into
account impact on
mortgage rates
Only some Republicans
believe repeal will
actually SAVE money20110916_debt-reduction-options 8/13/2012 pg 18 of 26
Budget Category Description Savings over 10 Source Source Citation
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Budget
Category
Category Description Savings over 10
Yrs (FY 12 - 21)
Source
150 Mandatory
Spending
Repeal the 2010 Health Care Reform law. $210,000,000,000
increase in debt.
CBO "Cost Estimate for H.R. 2, Repealing the Job-
Killing Health Care Law Act" Feb 18, 2011
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 Revenue Taxes -
Individual
Impose a 5% Value Added Tax (VAT) on most goods and
services.
$2,500,000,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 27
153 Revenue Taxes -
Individual
Limit the ta x benefit of it emized deduct io ns to 15%. $ 1, 18 0,0 00 ,0 00 ,0 00 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 7
154 Revenue Energy Establish cap and trade program governing emissions of
greenhouse gases in US.
$1,178,900,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 35
155 Revenue Taxes Pass "Fairness in Taxation Act" - new tax brackets for income
starting at $1 million and ending with a $1 billion bracket. Thenew brackets would be: $1-1 0 million: 45%, $10-20 million: 46%,
$20-100 million: 47%, $100 million to $1 billion: 48%, $1 billion
and over: 49%.
$872,500,000,000 Economic Policy Institute, "The Peoples Budget: A
Technical Analysis" April, 2011
156 Revenue Taxes -
Individual
Eliminate the deduction for state and local taxes for individuals. $862,200,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 5.1
157 Revenue Taxes -
Individual
Raise all ordinary tax rates, Alternative Minimum Tax (AMT)
rates, dividends and capital gains rates by 1%.
$715,000,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
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
160 Revenue Taxes - Health
Care
Replace .9% Hospital Insurance (HI) surtax on earnings over
$200,000 for an individual and $250,000 for a family with a !5
increase in the total HI tax on all earnings.
$651,000,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 31
161 Revenue Taxes -
Individual
Limit the deduction for state and local taxes for individuals to
2% of adjusted gross income.
$629,300,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 5.2
162 Revenue Taxes -
Individual
Raise all tax rates on ordinary income by 1%. $480,400,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 1.1
163 Revenue 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 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 16
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Comments
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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 pre-
Bush levels at end of
2012.)
(CBO's figures assume
tax rates revert to pre-
Bush levels at end of
2012.)
(CBO's figures assume
tax rates revert to pre-
Bush levels at end of
2012.)
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Budget
Category
Category Description Savings over 10
Yrs (FY 12 - 21)
Source Source Citation
164 Revenue Taxes -
Individual
Tax social security a nd railroad retirement benefits in the same
way that distributions from defined-benefit pensions are taxed.
$438,400,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 11
165 Revenue Taxes -
Individual
Eliminate existing t axes 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.
$311,500,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 8
166 Revenue Taxes - Health
Care
Accelerate implementation of excise tax on high cost health 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.
$309,500,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 30
167 Revenue Health Care Repeal the individual health care mandate. $282,000,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 32
168 Revenue Taxes -
Business
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.
$276,000,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 22
169 Revenue Taxes -
Individual
Include investment income from life insurance and annuities in
taxable income for individuals.
$259,500,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 9
170 Revenue Taxes -Individual Limit deductions for charitable giving to 2% of adjusted grossincome. $219,000,000,000 CBO report "Reducing the Deficit: Spending andRevenue Options" (Mar 11)
Option 6
171 Revenue Taxes -
Individual
Gradually eliminate the mortgage interest deduction by 2024. $214,600,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 4
172 Revenue Taxes -
Business
Repeal the deduction for domestic production activities (oil and
gas)
$163,100,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 23
173 Revenue Taxes Allow Medicare Part D to negotiation pharmaceutical prices. $157,900,000,000 Economic Policy Institute, "The Peoples Budget: A
Technical Analysis" April, 2011
174 Revenue Taxes Replace the tax exclusion for interest income on state and local
bonds with a direct 15% subsidy to the issuer.
$142,700,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 13
175 Revenue Taxes -
Individual
Raise the top three ordinary tax rates by 1%. $139,100,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 1.6
176 Revenue Taxes -
Individual
Eliminate the child tax credit. $116,700,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 14
177 Revenue Taxes -
Individual
Raise the top two ordinary tax rates by 1%. $115,000,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 1.5
178 Revenue Taxes -
Business
Tax foreign income of US corporations a s it is earned, not when
repatriated to USA.
$114,200,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 25
179 Revenue Taxes -
Business
Increase all corporate income tax rates by 1% $100,600,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 18
180 Revenue Social Security Expand social security coverage to newly hired state and localgovernment employees hired after December 31, 2011.
$96,000,000,000 CBO report "Reducing the Deficit: Spending andRevenue Options" (Mar 11)
Option 17
181 Revenue Taxes Use chained consumer price index (CPI-U) to adjust tax brackets
in the tax code.
$86,900,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 3
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Comments
Only Republicanms think
this will save money
(CBO's figures assume
tax rates revert to pre-
Bush levels at end of
2012.)
(CBO's figures assume
tax rates revert to pre-
Bush levels at end of
2012.)
20110916_debt-reduction-options 8/13/2012 pg 22 of 26
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Category Yrs (FY 12 - 21)
182 Revenue Taxes -
Individual
Raise the top ordinary tax rate by 1%. $83,900,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 1.4
183 Revenue Taxes -
Business
Exempt "active" dividends that U.S. corporations earn from the
business operations of their foreign subsidies or fore ign 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. taxa tion. No longer allow
overhead expenses allocated to foreign income to be deductiblefrom U.S. income.
$76,200,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 26
184 Revenue Financial
Services
Impose annual FEE of .15% on banks, thrifts, brokers, security
dealers and US holding companies with assets of more than $50
billion.
$70,900,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 33
185 Revenue Taxes -
Business
Repeal Last In, First Out (LIFO) accounting method. $70,000,000,0 00 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 20
186 Revenue Taxes -
Business
Fully eliminate the Volumetric Ethanol Excise Tax Credit
(VEETC) and fully repeal the tar iff on imported ethanol.
$60,000,000,000 Reuters "Senate vote marks start of end for ethanol
subsidies" June 16, 2011
187 Revenue Taxes -
Business
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.
$59,900,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 29
188 Revenue Taxes -
Business
Eliminate the title passage rule and require corporations to
allocate income for the purpose of taxation on the basis o f where
the economic activity actually occurs.
$53,700,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 24
189 Revenue Taxes -
Individual
Raise tax rates on capital gains by 2%. $48,500,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 2
190 Revenue Taxes -
Individual
Eliminate tax pre ferences for education expenses including the
Hope Tax Credit, the Lifetime Learning tax credit.
$47,700,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 15
191 Revenue Taxes -
Individual
Reduce limits on contributions to retirement plans to $14,850 for
401(k) plans and $4500 for IRA's.
$45,900,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 12
192 Revenue Taxes -
Business
Set the corporate income tax rate at 35% for all corporations. $24,400,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 19
193 Revenue Taxes -
Individual
Tax "carried interest " as ordinary income (impacts only Hedge
Fund managers and treats their salaries like everyone else)
$21,400,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 10
194 Revenue Taxes -
Business
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".
$21,000,000,000 Center for American Progress "Ending Big Oil's Tax
Holiday" May 17, 2011
195 Revenue Taxes -
Business
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.
$10,000,000,000 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 21
196 Revenue Energy 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.
$5,000,000,000 FY 2012 Budget Alternative "Republican Study
Committee: Honest Solutions"
197 Revenue Taxes -Business
Eliminate a tax loophole for corporate jet owners that allowscorporate jets to be depreciated over a five-year period rather
than the seven-year period required for commercial ones.
$3,000,000,000 ABC News "Behind the Scenes of the DeficitNegotiations: $400B in Tax Hikes, $1T in Spending
Cuts" June 30, 2011
198 Revenue Taxes -
Individual
Increase ex cise ta xes o n mo to r fuels by 25 cent s per g allon. $ 29 1, 00 0, 00 0 CBO report "Reducing the Deficit: Spending and
Revenue Options" (Mar 11)
Option 28
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Comments
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(CBO's figures assume
tax rates revert to pre-
Bush levels at end of
2012.)
20110916_debt-reduction-options 8/13/2012 pg 24 of 26
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25/26
Budget
Category
Category Description Savings over 10
Yrs (FY 12 - 21)
Source Source Citation
199 Revenue Taxes -
Business
Eliminate subsidies for wool and mohair producers. $40,000,000 FY 2012 Budget Alternative "Republican Study
Committee: Honest Solutions"
200 Revenue Taxes -
Individual
Cut top income tax rate from 35% to 25% and eliminate certain
tax expenditures.
No figure provided. FY 2012 Budget Resolution "The Path to Prosperity:
Restoring America's Promise."
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Comments