20110916 debt reduction options

7/31/2019 20110916 Debt Reduction Options

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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


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


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


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


Option 14.3

6 Discretionary

Spending

Defense Limit rate of growth in DOD appropriations to 1.4 percent a

year.



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.



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.



Option 20

9 Discretionary

Spending

Federal

Employees

Reduce annual salary increase by .5% each year for Federal

civilian employees.



Option 37

10 Discret ionary

Spending

Transportation Eliminate intercity rail subsidies, including Amtrak and high

speed rail service.



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.



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)



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)



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.



Option 35

16 Discret ionary

Spending

Veterans Raise enrollment FEES, copayments and deductibles for military

retirees under age 65 who choose to use TRICARE.



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.



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


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.



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.



Option 22

20110916_debt-reduction-options 8/13/2012 pg 1 of 26


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Comments



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Budget

Category


Yrs (FY 12 - 21)


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.



Option 8

22 Discret ionary

Spending

Defense Cap increases in military pay at .5 percent below increase in the

employment cost index.



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.



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


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.



Option 28

27 Discret ionary

Spending

National Service Eliminate funding for National Community Service Programs

including AmeriCorps.



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.



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.



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.



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 .



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.



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.



Option 16.3

34 Discret ionary

Spending

Defense Delay initial fielding of Army's Ground Combat Vehicle until

2025.



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.



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



Option 31

37 Discret ionary

Spending

Defense End development of the Medium Extended Air Defense System

(MEADS).



Option 12



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Comments



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Budget

Category


Yrs (FY 12 - 21)


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.



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.



Option 19

40 Discret ionary

Spending

Energy Reduce funding for nuclear energy research, development and

demonstration by 25% below FY 11 levels.



Option 16.2

41 Discret ionary

Spending

Infrastructure Create state revolving funds to finance rural water and waste

disposal.



Option 25

42 Discret ionary

Spending

Energy Reduce funding for fossil energy research, development and

demonstration by 25% below FY 11 levels.



Option 16.1

43 Discret ionary

Spending

Energy Eliminate Dept. of Energy's grants to states for energy

conservation and weatherization.



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.



Option 10

45 Discret ionary

Spending

FEES Charge transaction FEES to fund the Commodity Futures

Trading Commission.



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


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)



Option 9

48 Discret ionary

Spending

Defense End the Precision Tracking Space System being designed by the

Missile Defense Agency.



Option 13

49 Discret ionary

Spending

Federal

Government

Reduce federal printing, travel and vehicle budgets by 20%. (this

$ is thru 2015)



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


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


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


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


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


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


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


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


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"

Jan 201120110916_debt-reduction-options 8/13/2012 pg 5 of 26


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Comments



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Budget

Category


Yrs (FY 12 - 21)


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.


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.


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).


Jan 2011

66 Discret ionary

Spending

Foreign Aid Eliminate the U.S. Agency for International Development

(USAID).


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.


Jan 2011

69 Discret ionary

Spending

Foreign Aid Eliminate funding to the United Nations Intergovernmental

Panel on Climate Change (IPCC)


Jan 2011


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.


Jan 2011

72 Discret ionary

Spending

Education Eliminate federal funding to the Woodrow Wilson Center for

International Scholars.


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


Jan 2011

74 Discret ionary

Spending

Jobs Eliminate the Appalachian Regional Commission that promotes

economic development in 9 states.


Jan 2011


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.


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.


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.





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Comments



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Budget

Category


Yrs (FY 12 - 21)


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.



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.



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.



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.



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


Option 29

87 Mandatory

Spending

Social Security Switch to pure price indexing for calculating social security

benefits.



Option 28.1

88 Mandatory

Spending

Medicare Raise Medicare eligibility age to 67. $124,800,000,000 CBO report "Reducing the Deficit: Spending and


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


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.



Option 25

91 Mandatory

Spending

Social Security Base cost of living adjustments for social security on chained

consumer price index.



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.



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.



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


Option 12

95 Mandatory

Spending

Social Security Switch to progressive price indexing for calculating social

security benefits.



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.



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.



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.



Option 24



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Comments



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Budget

Category


Yrs (FY 12 - 21)


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.



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.



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.



Option 31

102 Mandatory

Spending

Federal

Employees

Adjust the ratio of employer/employee contributions to federal

employee pension plans to equalize contributions.



December 2010.

103 Mandatory

Spending

Medicaid Extend Medicaid drug rebate to dual eligibles in Medicare Part

D.



December 2010.

104 Mandatory

Spending

Medicare Reduce Medicare provider payment rates for services offered

under Parts A and Parts B in high cost areas.



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 .



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.



Option 1

107 Mandatory

Spending

Education Eliminate income-based subsidies for federal student loan

borrowers and better target hardship relief for loan repayment.



December 2010.

108 Mandatory

Spending

Medicare Require a copayment equal to 10% of total cost for each home

health care episode for Medicare beneficiaries.



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)



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.





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Comments



13/26

Budget

Category


Yrs (FY 12 - 21)


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%.



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:


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.



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.



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.



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.



Option 19

118 Mandatory

Spending

Education Eliminate subsidized Stafford Loans to graduate students. $18,400,000,000 CBO report "Reducing the Deficit: Spending and


Option 10

119 Mandatory

Spending

Health Care Reduce funding for the State Children's Health Insurance

Program (SCHIP) by repealing 200 9 eligibility expansion.



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.



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.



December 2010.

122 Mandatory

Spending

Retirees Give Pension Benefit Guarantee Corporation power to raise

premiums.



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.



124 Mandatory

Spending

Medicaid Place dual eligibles in Medicaid managed care. $12,000,000,000 The Moment of Truth: Report of the National


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.



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.



15/26

Budget

Category


Yrs (FY 12 - 21)


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.



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.



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.



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.



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.



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.



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.


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.



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.



Option 8

135 Mandatory

Spending

Agriculture Eliminate the Ma rket Access Program intended to promote

overseas marketing of U.S. agricultural products.



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.


Commission on Fiscal Responsibility and Reform,December 2010.



16/26

Comments


S Ci i


17/26

Budget

Category


Yrs (FY 12 - 21)


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.



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


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


140 Mandatory

Spending

Currency Replace the dollar bill with a dollar coin. $215,000,000 FY 2012 Budget Alternative "Republican Study


141 Mandatory

Spending

Housing Eliminate Fannie Mae and Freddie Mac. No figure available. FY 2012 Budget Resolution "The Path to Prosperity:


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


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.



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.



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.



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.



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.



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




18/26

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


19/26

Budget

Category


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


December 2010.

152 Revenue Taxes -

Individual

Impose a 5% Value Added Tax (VAT) on most goods and

services.



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


Option 7

154 Revenue Energy Establish cap and trade program governing emissions of

greenhouse gases in US.



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


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


Option 5.1

157 Revenue Taxes -

Individual

Raise all ordinary tax rates, Alternative Minimum Tax (AMT)

rates, dividends and capital gains rates by 1%.



Option 1.3

158 Revenue Taxes -

Individual

Raise all ordinary tax rates and Altrenative Minimum Tax

(AMT) rates by 1%.



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.



Option 31

161 Revenue Taxes -

Individual

Limit the deduction for state and local taxes for individuals to

2% of adjusted gross income.



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


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.



Option 16


Comments


20/26

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 pre-

Bush levels at end of

2012.)




2012.)




2012.)



21/26

Budget

Category


Yrs (FY 12 - 21)


164 Revenue Taxes -

Individual

Tax social security a nd railroad retirement benefits in the same

way that distributions from defined-benefit pensions are taxed.



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.



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.



Option 30

167 Revenue Health Care Repeal the individual health care mandate. $282,000,000,000 CBO report "Reducing the Deficit: Spending and


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.



Option 22

169 Revenue Taxes -

Individual

Include investment income from life insurance and annuities in

taxable income for individuals.



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


Option 4

172 Revenue Taxes -

Business

Repeal the deduction for domestic production activities (oil and

gas)



Option 23

173 Revenue Taxes Allow Medicare Part D to negotiation pharmaceutical prices. $157,900,000,000 Economic Policy Institute, "The Peoples Budget: A


174 Revenue Taxes Replace the tax exclusion for interest income on state and local

bonds with a direct 15% subsidy to the issuer.



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


Option 1.6

176 Revenue Taxes -

Individual

Eliminate the child tax credit. $116,700,000,000 CBO report "Reducing the Deficit: Spending and


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


Option 1.5

178 Revenue Taxes -

Business

Tax foreign income of US corporations a s it is earned, not when

repatriated to USA.



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


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.



Option 3



22/26

Comments

Only Republicanms think

this will save money




2012.)




2012.)


Budget Category Description Savings over 10 Source Source Citation


23/26

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


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.



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.



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


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.



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.



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


Option 2

190 Revenue Taxes -

Individual

Eliminate tax pre ferences for education expenses including the

Hope Tax Credit, the Lifetime Learning tax credit.



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.



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


Option 19

193 Revenue Taxes -

Individual

Tax "carried interest " as ordinary income (impacts only Hedge

Fund managers and treats their salaries like everyone else)



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.



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.



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


Option 28


Comments


24/26




2012.)



25/26

Budget

Category


Yrs (FY 12 - 21)


199 Revenue Taxes -

Business

Eliminate subsidies for wool and mohair producers. $40,000,000 FY 2012 Budget Alternative "Republican Study


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:




26/26

Comments

20110916 debt reduction options

Documents