CBO Reducing the Deficit: Spending and Revenue Options

CBO
Reducing the Deficit: Spending and Revenue Options
Link

Abstract
The Congressional Budget Office (CBO) regularly issues a compendium of budget options to help inform federal lawmakers about the implications of possible policy choices. This volume—one of several reports that CBO produces regularly for the House and Senate Committees on the Budget—presents more than 100 options for altering federal spending and revenues. Nearly all of the options would reduce federal budget deficits. The report begins with an introductory chapter that describes the current budgetary picture and the uses and limitations of this volume. Chapters 2 and 3 present options that would reduce mandatory and discretionary spending, respectively.
Chapter 4 contains options that would increase revenues from various kinds of
taxes and fees.

Summary
Federal budget deficits will total $7 trillion over the next decade if current laws remain unchanged, the Congressional Budget Office (CBO) projects. If certain policies that are scheduled to expire under current law are extended instead, deficits may be much larger. Beyond the coming decade, the aging of the U.S. population and rising health care costs will put increasing pressure on the budget. If federal debt continues to expand faster than the economy—as it has since 2007—the growth of people's income will slow, the share of federal spending devoted to paying interest on the debt will rise, and the risk of a fiscal crisis will increase.

Options for Reducing Mandatory Spending

Of the 32 options in the mandatory spending chapter:
- Fifteen deal with spending for health care programs.
- Seven would make changes to Social Security or other retirement programs.
- Ten focus on Fannie Mae, Freddie Mac, and programs that deal with education, energy, or agriculture.

Summary Link

Comments: I will have the tax summaries up from Chapter 4 for all 36 Taxing Proposals tommorow.