Uh Oh!! You failed to reduce the debt to a sustainable level. Without further changes, a fiscal crisis is likely to occur.

Transcription

1 Uh Oh!! You failed to reduce the debt to a sustainable level. Without further changes, a fiscal crisis is likely to occur. Savings Relative to Current Law in Billions $ Savings Relative to Current Policy in Billions $ Dollars in Billions that you need to cut to get under 60% of the GDP by $ See your list of choices on page 2.

2 Choose Your Path Iraq and Afghanistan Reduce Troops to 60,000 by 2015 Reduce Troops to 45,000 by 2015 Maintain Current Funding Levels $0 2001/2003 Tax Cuts Renew All the Tax Cuts Renew the Tax Cuts on Income Below $250k/200k Renew Tax Cuts Available at Lower Incomes and Continue AMT and Estate Tax at 2009 Level Allow All the Tax Cuts to Expire, Except for AMT Patches and Estate Tax at 2009 Level Alter the Sustainable Growth Rate -$580B -$840B $4,530B $3,430B $2,660B $1,130B Freeze the Sustainable Growth Rate $320B Grow Sustainable Growth Rate at Medicare Economic Index Adopt the Bowles-Simpson Fiscal Commission Recommendations for the Sustainable Growth Rate $380B $280B Defense, Diplomacy & Security Replace the Joint Strike Fighter Program with F-16s and F/A-18s Foreign Aid Cut Foreign Economic Aid in Half -$90B Increase Foreign Economic Aid by 50% $90B Veteran Benefits Reduce Veteran Income Security Benefits Expand Veteran Income Security Benefits Reduce Spending Related to the Nuclear Arsenal Reduce US Navy Fleet to 230 Ships $40B -$170B Increase Homeland Security Spending $60B Troop Levels Increase Number of Troops by 46,000 $80B Reverse 'Grow the Army' Initiative -$110B

3 Domestic Social & Economic Spending Restart the NASA Moon Mission and Create a Moon Colony $160B Enact New Jobs Bill $300B Highway Funding Limit Highway Funding and Increase Fees for Aviation Security -$130B Enact Increased Transportation Funding $260B Block Grant Food Stamps and Reduce to 2008 Levels Cut Temporary Assistance to Needy Families (TANF) Program Cut Federal Funding of K-12 Education by 25% Eliminate the New Markets Tax Credit Cut School Breakfast Programs -$180B -$30B -$40B Double Funding on Adoption and Foster Care $80B Increase Education Funding by $10 Billion Each Year $130B Social Security Raise the Normal Retirement Age to 68 Slow Initial Benefit Growth Gradually Reduce Scheduled Benefits Progressively Reduce Benefits, Protecting Low and Middle Income Earners Progressively Reduce Benefits, Protecting Low Income Earners -$140B -$40B -$90B Use an Alternate Measure of Inflation for COLA -$110B Reduce Spousal Benefits from 50% to 33% Increase Years Used to Calculate Benefits Include All New State and Local Workers -$20B Institute a Minimum Benefit $200B

4 Healthcare Modify Health Care Reform Law Establish a Public Option in the Health Exchanges Repeal Insurance Mandate -$330B Repeal Entire Legislation $80B Repeal Legislation, but Keep Medicare/Medicaid Cuts Increase Cost Sharing for Medicare Raise Medicare Premiums to 35% of Costs Require Manufacturers to Pay a Minimum Drug Rebate for Medicare Low-Income Beneficiaries Enact Medical Malpractice Reform Increase Medicare Retirement Age to 67 Replace Traditional Medicare with Premium Support Modify Federal Medicaid Funding to States Reduce the Floor on Federal Matching Rates for Medicaid Block Grant Medicaid and Grow With Inflation Plus Population Growth -$700B -$130B -$190B -$110B -$140B -$150B -$300B Other Spending Use the Chained CPI for Other Indexed Programs Reduce Federal Civilian Employee Pay Increases and Cap Increases in Military Pay Introduce Minimum Out-of-Pocket Requirements Under TRICARE for Life Reform Federal Retiree Benefits Reform Fannie Mae and Freddie Mac Reduce Farm Subsidies Expand Spending on Federal Research & Development Reduce Funding for the Arts & Humanties -$70B -$70B -$30B $110B -$10B Increase Mass Transit Funding $60B

5 Revenue Raise Tax Rates on Capital Gains Sell Certain Government Assets Impose a Financial Crisis Responsibility Fee Repeal LIFO Accounting Methods and Eliminate Oil and Gas Preferences in the Tax Code Enact Carbon Tax or Cap-and-Trade Increase Gas Tax by 10 Cents per Gallon Enact Five Percent VAT with Partial Rebate Eliminate Taxes on Capital Gains, Dividends and Interest for Families Earning Below $200,000 Impose a 5.6% Surtax on Income Above $1 Million Enact the Buffett Rule Raise Social Security Payroll Tax Cap Raise Cap to Cover 90% of Earnings Institute Two Percent Surtax on Earnings Above Cap -$150B -$410B -$120B -$490B $230B -$540B -$410B -$200B Reduce Corporate Tax Rate to 30% $410B Index Tax Code to Alternate Measure of Inflation Improve Tax Collection (Reduce Tax Gap) -$10B Tax Expenditures Tax Fringe Benefits as Regular Income Gradually Phase Out Mortgage Interest Deduction Curtail State and Local Tax Deduction Eliminate Life Insurance Tax Benefits Curtail the Deduction for Charitable Giving Make Research & Experimentation Tax Credit Permanent -$240B -$590B -$280B -$180B $40B Reinstate $400/person Making Work Pay Credit $530B Cut the EITC and Child Tax Credit Expand the EITC and Child Tax Credit $110B Extend American Opportunity Tax Credit $50B Tax Treatment of Employer Sponsored Health Insurance Accelerate and Modify Excise Tax on High- Cost Health Plans in 2013 Repeal Excise Tax on High-Cost Plans $120B Replace Employer Health Care Exclusion with a Flat Credit (In Place of Excise Tax) -$450B