Policy modifications for CPC FY2017 budget alternative (billions of dollars)
Total | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2017–2021 | 2017–2026 | 2016–2026 | |
Total deficit under CBO January 2016 current law baseline | -544 | -561 | -572 | -738 | -810 | -893 | -1,044 | -1,077 | -1,089 | -1,226 | -1,366 | -3,575 | -9,378 | -9,922 |
Additional revenue policy adjustments (impact on primary budget deficit, billions of dollars) | ||||||||||||||
Immediately revert to 36% and 39.6% rates for those above $250k/$200k. Leave in place other Bush tax cuts permanently. Enact Fairness in Taxation Act, and tax rate equalization | 54 | 137 | 143 | 150 | 158 | 165 | 173 | 182 | 191 | 200 | 642 | 1,553 | 1,553 | |
Repeal the step-up basis for capital gains at death | 62 | 66 | 70 | 74 | 79 | 84 | 89 | 95 | 100 | 107 | 351 | 825 | 825 | |
Cap the value of itemized deductions at 28% | 31 | 50 | 55 | 60 | 64 | 68 | 73 | 77 | 82 | 86 | 260 | 646 | 646 | |
End exclusion of foreign-earned income | 7 | 7 | 7 | 8 | 8 | 8 | 9 | 9 | 10 | 10 | 36 | 83 | 83 | |
Deny the home mortgage interest deduction for yachts and vacation homes | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 4 | 10 | 10 | |
Subject all pass-through entities to the self-employment tax and the 3.8% ACA Medicare tax | 17 | 23 | 25 | 26 | 27 | 28 | 29 | 31 | 32 | 34 | 118 | 272 | 272 | |
End deferral and reform foreign tax credit | 71 | 75 | 79 | 82 | 87 | 91 | 95 | 100 | 105 | 110 | 393 | 895 | 895 | |
Anti-inversion provisions | 2 | 3 | 3 | 3 | 4 | 4 | 5 | 5 | 6 | 6 | 15 | 41 | 41 | |
End Active Financing Exception | 7 | 7 | 8 | 8 | 9 | 9 | 9 | 10 | 10 | 11 | 39 | 88 | 88 | |
Curb corporate deductions for stock options | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 4 | 15 | 32 | 32 | |
Limit deductibility of executive bonus pay | 4 | 5 | 5 | 5 | 4 | 4 | 4 | 4 | 3 | 3 | 24 | 42 | 42 | |
Eliminate corporate jet provisions | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 1 | 3 | 3 | |
Reduce the deductibility of corporate meals and entertainment (25%) | 5 | 7 | 7 | 7 | 7 | 7 | 8 | 8 | 8 | 8 | 33 | 71 | 71 | |
End direct advertising of certain foods | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 9 | 20 | 20 | |
Increase the excise tax on cigarettes by 50 cents per pack | 3 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 17 | 35 | 35 | |
Eliminate fossil fuel preferences (EPWA) | 12 | 13 | 13 | 13 | 14 | 14 | 14 | 15 | 15 | 15 | 65 | 139 | 139 | |
Price carbon at $25 (refunding 25%) | 79 | 111 | 117 | 123 | 130 | 137 | 144 | 152 | 158 | 166 | 560 | 1,317 | 1,317 | |
Reinstate Superfund taxes | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 10 | 22 | 22 | |
Unemployment Insurance Solvency Act | 0 | 3 | 3 | 4 | 4 | 5 | 7 | 6 | 6 | 7 | 15 | 46 | 46 | |
Financial transactions tax | 62 | 85 | 87 | 90 | 93 | 95 | 98 | 101 | 105 | 108 | 417 | 924 | 924 | |
Excise tax on systemically important financial institutions | 6 | 11 | 11 | 11 | 11 | 12 | 12 | 12 | 13 | 13 | 50 | 111 | 111 | |
Progressive estate tax reform | 3 | 14 | 18 | 23 | 25 | 26 | 28 | 30 | 32 | 34 | 82 | 231 | 231 | |
Repeal excise tax on high-premium insurance plans | 0 | 0 | 0 | -5 | -9 | -11 | -14 | -17 | -21 | -26 | -14 | -103 | -103 | |
Eliminate Highway Trust Fund shortfall with $10.25 per barrel tax on oil | 7 | 14 | 22 | 28 | 35 | 41 | 42 | 43 | 43 | 43 | 107 | 319 | 319 | |
Comprehensive immigration reform (total budgetary effect) | -15 | 14 | 16 | 17 | 21 | 25 | 27 | 32 | 37 | 43 | 43 | 216 | 216 | |
Additional spending policy adjustments (impact on primary budget deficit, billions of dollars) | ||||||||||||||
Repeal Budget Control Act (BCA) mandatory and discretionary cuts (both phases) | -31 | -66 | -82 | -89 | -95 | -101 | -104 | -107 | -118 | -96 | -363 | -889 | -889 | |
Infrastructure investments | -104 | -104 | -109 | -113 | -113 | -113 | -114 | -117 | -118 | -120 | -122 | -551 | -1,143 | -1,247 |
Additional job creation credits and provisions | -190 | -68 | -20 | -23 | -25 | -27 | -29 | -31 | -34 | -36 | -39 | -163 | -332 | -521 |
Investments (nondiscretionary defense increases over removing BCA) | -1 | -24 | -59 | -91 | -124 | -155 | -179 | -199 | -219 | -238 | -259 | -453 | -1,548 | -1,549 |
Preschool for all | 0 | -1 | -3 | -5 | -7 | -9 | -10 | -11 | -10 | -9 | -17 | -66 | -66 | |
Affordable college and refinancing student loans | -94 | -32 | -33 | -34 | -34 | -35 | -36 | -37 | -38 | -39 | -227 | -412 | -412 | |
Extend Children’s Health Insurance Program (CHIP) funding through 2019 | 0 | -1 | -2 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | -2 | -2 | -2 | |
Restore Supplemental Nutrition Assistance Program (SNAP) benefit levels and child nutrition | -5 | -3 | -2 | -2 | -2 | -2 | -2 | -2 | -2 | -2 | -2 | -11 | -21 | -26 |
End Overseas Contingency Operations (OCO) after FY16 (both 050 and 150) | 43 | 61 | 70 | 75 | 78 | 80 | 82 | 83 | 85 | 87 | 326 | 744 | 744 | |
End supplemental spending* after FY16 | -3 | -1 | 0 | 1 | 3 | 5 | 5 | 6 | 6 | 7 | 0 | 29 | 29 | |
Base DOD adjustments | 6 | 9 | 13 | 16 | 17 | 18 | 20 | 19 | 21 | 26 | 60 | 164 | 164 | |
Negotiate Rx payments for Medicare | 0 | 4 | 8 | 11 | 13 | 15 | 17 | 21 | 24 | 28 | 35 | 140 | 140 | |
Establish Paid Leave Partnership | 0 | -1 | -1 | -1 | 0 | 0 | 0 | 0 | 0 | 0 | -2 | -2 | -2 | |
Public option | 2 | 17 | 20 | 23 | 24 | 27 | 28 | 29 | 31 | 32 | 86 | 233 | 233 | |
Reform rules for Rx development/release | 1 | 1 | 1 | 2 | 2 | 2 | 3 | 3 | 3 | 3 | 7 | 21 | 21 | |
Reduce fraud, waste, and abuse in Medicaid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2 | 2 | |
Payment and administrative cost improvements | 1 | 3 | 5 | 7 | 9 | 9 | 10 | 11 | 11 | 12 | 25 | 78 | 78 | |
Replace growth rate of civilian and veteran retirement programs with CPI-E | 0 | -2 | -4 | -6 | -9 | -12 | -14 | -17 | -21 | -24 | -20 | -108 | -108 | |
End Family Homelessness Initiative | 0 | 0 | -1 | -1 | -1 | -1 | -1 | -2 | -2 | -2 | -3 | -11 | -11 | |
Reduce agriculture subsidies | 1 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 8 | 18 | 18 | |
Public financing of campaigns | -1 | -1 | -1 | -1 | -1 | -1 | -1 | -1 | -1 | -1 | -6 | -12 | -12 | |
Net policy adjustments (primary) | -300 | 147 | 460 | 464 | 476 | 483 | 501 | 516 | 532 | 545 | 596 | 2,022 | 4,721 | 4,421 |
Debt service impact of policy adjustments | -1 | -3 | 5 | 20 | 36 | 55 | 74 | 95 | 117 | 141 | 166 | 113 | 706 | 1,525 |
Net impact of policy adjustments | -301 | 144 | 465 | 485 | 513 | 538 | 575 | 611 | 650 | 686 | 761 | 2,136 | 5,427 | 5,126 |
CPC FY17 deficit | -845 | -417 | -108 | -253 | -297 | -354 | -469 | -467 | -440 | -540 | -605 | -1,439 | -3,951 | -4,796 |
Memorandum | ||||||||||||||
CPC defense discretionary outlays relative to current law defense discretionary outlays (excluding OCO) | 15 | 14 | 12 | 10 | 10 | 9 | 9 | 10 | 9 | 5 | 61 | 103 | 103 | |
CPC defense discretionary budget authority relative to proposed discretionary BA (excluding OCO) in President’s FY17 budget | 0 | -22 | -20 | -14 | -14 | -10 | -8 | -2 | -1 | -4 | -70 | -95 | -95 |
* Supplemental spending includes disaster and emergency.
Note: Numbers may not add due to rounding.