Deficit Reduction Plans and Options

Comprehensive Plans:

Recent Reports:

CBO Deficit Reduction Options: Mandatory Spending (Other than health)

# Title Savings, 2017–2026a(Billions of Dollars)
1 Change the Terms and Conditions for Oil and Gas Leasing on Federal Lands 3
2 Limit Enrollment in the Department of Agriculture’s Conservation Programs 10
3 Eliminate Title I Agriculture Programs 25
4 Reduce Subsidies in the Crop Insurance Program 27
5 Eliminate ARC and PLC Payments on Generic Base Acres 4
6 Limit ARC and PLC Payment Acres to 50 Percent of Base Acres 11
7 Raise Fannie Mae’s and Freddie Mac’s Guarantee Fees and Decrease Their Eligible Loan Limits 6
8 Eliminate the Add-On to Pell Grants, Which Is Funded With Mandatory Spending 60
9 Limit Forgiveness of Graduate Student Loans 19
10 Reduce or Eliminate Subsidized Loans for Undergraduate Students 8 to 27
11 Eliminate Concurrent Receipt of Retirement Pay and Disability Compensation for Disabled Veterans 139
12 Reduce Pensions in the Federal Employees Retirement System 7
13 Convert Multiple Assistance Programs for Lower-Income People Into Smaller Block Grants to States 367b
14 Eliminate Subsidies for Certain Meals in the National School Lunch, School Breakfast, and Child and Adult Care Food Programs 10
15 Tighten Eligibility for the Supplemental Nutrition Assistance Program 88
16 Reduce TANF’s State Family Assistance Grant by 10 Percent 14
17 Eliminate Supplemental Security Income Benefits for Disabled Children 104b
18 Link Initial Social Security Benefits to Average Prices Instead of Average Earnings 72 to 114
19 Make Social Security’s Benefit Structure More Progressive 8 to 36
20 Raise the Full Retirement Age for Social Security 8
21 Reduce Social Security Benefits for New Beneficiaries 105 to 190
22 Require Social Security Disability Insurance Applicants to Have Worked More in Recent Years 45
23 Eliminate Eligibility for Starting Social Security Disability Benefits at Age 62 or Later 17
24 Narrow Eligibility for Veterans’ Disability Compensation by Excluding Certain Disabilities Unrelated to Military Duties 26
25 Restrict VA’s Individual Unemployability Benefits to Disabled Veterans Who Are Younger Than the Full Retirement Age for Social Security 40
26 Use an Alternative Measure of Inflation to Index Social Security and Other Mandatory Programs 182

CBO Deficit Reduction Options: Revenues (Other than health)

# Title Savings, 2017–2026a(Billions of Dollars)
1 Increase Individual Income Tax Rates 93 to 734
2 Implement a New Minimum Tax on Adjusted Gross Income 66
3 Raise the Tax Rates on Long-Term Capital Gains and Qualified Dividends by 2 Percentage Points 57
4 Use an Alternative Measure of Inflation to Index Some Parameters of the Tax Code 157
5 Convert the Mortgage Interest Deduction to a 15 Percent Tax Credit 105
6 Curtail the Deduction for Charitable Giving 229
7 Limit the Deduction for State and Local Taxes 955
8 Limit the Value of Itemized Deductions 119 to 2,232
9 Change the Tax Treatment of Capital Gains From Sales of Inherited Assets 68
10 Eliminate the Tax Exemptions for New Qualified Private Activity Bonds 28
11 Expand the Base of the Net Investment Income Tax to Include the Income of Active Participants in S Corporations and Limited Partnerships 160
12 Tax Carried Interest as Ordinary Income 20
13 Include Disability Payments From the Department of Veterans Affairs in Taxable Income 38 to 94
14 Include Employer-Paid Premiums for Income Replacement Insurance in Employees’ Taxable Income 336
15 Further Limit Annual Contributions to Retirement Plans 92
16 Tax Social Security and Railroad Retirement Benefits in the Same Way That Distributions From Defined Benefit Pensions Are Taxed 423
17 Eliminate Certain Tax Preferences for Education Expenses 195
18 Lower the Investment Income Limit for the Earned Income Tax Credit and Extend That Limit to the Refundable Portion of the Child Tax Credit 7
19 Require Earned Income Tax Credit and Child Tax Credit Claimants to Have a Social Security Number That Is Valid for Employment 37
20 Increase the Maximum Taxable Earnings for the Social Security Payroll Tax 633 to 1,008
21 Expand Social Security Coverage to Include Newly Hired State and Local Government Employees 78
22 Increase the Payroll Tax Rate for Medicare Hospital Insurance by 1 Percentage Point 823
23 Tax All Pass-Through Business Owners Under SECA and Impose a Material Participation Standard 137
24 Increase Taxes that Finance the Federal Share of the Unemployment Insurance System 13 to 15
25 Increase Corporate Income Tax Rates by 1 Percentage Point 100
26 Capitalize Research and Experimentation Costs and Amortize Them Over Five Years 185
27 Extend the Period for Depreciating the Cost of Certain Investments 251
28 Repeal Certain Tax Preferences for Energy and Natural Resource–Based Industries 24
29 Repeal the Deduction for Domestic Production Activities 174
30 Repeal the “LIFO” and “Lower of Cost or Market” Inventory Accounting Methods 102
31 Subject All Publicly Traded Partnerships to the Corporate Income Tax 6
32 Repeal the Low-Income Housing Tax Credit 34
33 Determine Foreign Tax Credits on a Pooling Basis 82
34 Require a Minimum Level of Taxation of Foreign Income as It Is Earned 301
35 Further Limit the Deduction of Interest Expense for Multinational Corporations 68
36 Increase Excise Taxes on Motor Fuels by 35 Cents and Index for Inflation 474
37 Impose an Excise Tax on Overland Freight Transport 343
38 Increase All Taxes on Alcoholic Beverages to $16 Per Proof Gallon 70
39 Impose a 5 Percent Value-Added Tax 1,770 to 2,670
40 Impose a Fee on Large Financial Institutions 98
41 Impose a Tax on Financial Transactions 707
42 Impose a Tax on Emissions of Greenhouse Gases 977
43 Increase Federal Civilian Employees’ Contributions to the Federal Employees Retirement System

CBO Deficit Reduction Options:  Health

# Title Savings, 2017–2026a(Billions of Dollars)
1 Adopt a Voucher Plan and Slow the Growth of Federal Contributions for the Federal Employees Health Benefits Program 31b
2 Impose Caps on Federal Spending for Medicaid 370 to 680
3 Limit States’ Taxes on Health Care Providers 16 to 40
4 Repeal All Insurance Coverage Provisions of the Affordable Care Act 1,236
5 Repeal the Individual Health Insurance Mandate 416
6 Introduce Minimum Out-of-Pocket Requirements Under TRICARE for Life 27
7 Change the Cost-Sharing Rules for Medicare and Restrict Medigap Insurance 18 to 66
8 Increase Premiums for Parts B and D of Medicare 22 to 331
9 Raise the Age of Eligibility for Medicare to 67 18
10 Reduce Medicare’s Coverage of Bad Debt 15 to 31
11 Require Manufacturers to Pay a Minimum Rebate on Drugs Covered Under Part D of Medicare for Low-Income Beneficiaries 145
12 Consolidate and Reduce Federal Payments for Graduate Medical Education at Teaching Hospitals 32
13 Limit Medical Malpractice Claims 62b
14 End Congressional Direction of Medical Research in the Department of Defense 9
15 Modify TRICARE Enrollment Fees and Cost Sharing for Working-Age Military Retirees 18b
16 End Enrollment in VA Medical Care for Veterans in Priority Groups 7 and 8 54b
17 Increase the Excise Tax on Cigarettes by 50 Cents per Pack 35
18 Reduce Tax Preferences for Employment-Based Health Insurance 174 to 429