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.

View the underlying data on epi.org.