http://www.usatoday.com/news/washington/2011-04-13-Obama-proposes-budget-cuts.htm
Health care spending
•Obama: Cuts $340 billion over 10 years from projected increases in federal health care programs while preserving Medicare and Medicaid. Enforces the savings with a process that would implement cuts if a future Congress refused to make them.
•Fiscal Commission: Implements and expands Medicare changes in the 2010 health care law that were designed to reduce costs; sets limits for health care spending beyond 2020.
•Bipartisan Policy Center: Gradually raises Medicare Part B (doctor) premiums from 25% to 35% of program costs. Changes Medicare, starting in 2018, to a program that encourages the use of private plans, but keeps traditional Medicare as a backup system.
•House Republicans: Changes Medicare, starting in 2022, to a system in which the government would provide payments to beneficiaries to buy private insurance. The average payment, which would go to the insurer, would be $8,000 in 2022. Raises eligibility age to 67 by 2033. Cuts Medicaid by $750 billion over 10 years and turns it into a block grant to the states. Repeals key parts of Obama’s health care law.
Social Security
•Obama: Calls for bipartisan efforts to address the retirement program without privatizing it or slashing benefits in the future..
•Fiscal Commission: Gradually increases retirement age to 68 by 2050 and 69 by 2075; raises the amount of income subject to Social Security taxes in 2020 from about $168,000 to $190,000.
•Bipartisan Policy Center: Raises the taxable income ceiling to $190,000; trims benefits for wealthier beneficiaries; indexes the benefit formula to pay early retirees less and older retirees more.
•House Republicans: Creates a process under which Congress would have to address the retirement program’s fiscal problems, but does not propose specific changes.
Defense spending
•Obama: Saves $400 billion over 12 years.
•Fiscal Commission: Cuts several hundred billion dollars over 10 years from Obama’s 2012 budget.
•Bipartisan Policy Center: Freezes spending for five years, then allows only inflationary increases.
•House Republicans: Cuts about $78 billion over 10 years, $100 billion less than the amount recommended by Defense Secretary Robert Gates.
Domestic programs
•Obama: Cuts $770 billion over 12 years, including $400 billion already outlined in his proposed 2012 budget.
•Fiscal Commission: Cuts more than $200 billion over 10 years.
•Bipartisan Policy Center: Freezes spending for four years, then allows only inflationary increases.
•House Republicans: Reduces spending for the next five years to pre-2008 levels.
Taxes
•Obama: Allows tax rates to rise in 2013 and beyond on individuals with income above $200,000 and couples above $250,000. Eliminates about $320 billion in tax breaks over 10 years. Sets as a goal lowering individual and corporate tax rates, without details.
•Fiscal Commission: Eliminates much of the $1.1 trillion in annual special-interest tax breaks; reduces individual tax rates to 12%, 22% and 28%, and sets a 28% corporate rate; puts about $100 billion per year toward deficit reduction.
•Bipartisan Policy Center: Establishes a 6.5% “debt reduction sales tax.” Reduces individual tax rates to 15% and 27%, and the top corporate rate to 27%. Eliminates $1.9 trillion in special-interest tax breaks over 10 years, phases out the exclusion of employer-provided health benefits, and revises deductions for mortgage interest and charitable contributions.
•House Republicans: Slashes the top income tax rate from 35% to 25%. Eliminates some tax breaks but cuts taxes overall, rather than putting any new revenue toward deficit reduction.
Deficit
•Obama: Cuts $4 trillion over 12 years, including $1 trillion already outlined in his proposed 2012 budget.
•Fiscal Commission: Cuts $3.9 trillion over 10 years.
•Bipartisan Policy Center: Cuts $5.9 trillion over 10 years.
•House Republicans: Cuts $4.4 trillion over 10 years.
US Federal Budget Deficit
13 Apr '11 19:06
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