Policy modifications for CPC FY2018 budget alternative (billions of dollars)
| Total | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2018–2022 | 2018–2027 | 2017–2027 | |
| Total deficit under CBO January 2017 current law baseline | -559 | -487 | -601 | -684 | -797 | -959 | -1,000 | -1,027 | -1,165 | -1,297 | -1,408 | -3,528 | -9,426 | -9,984 |
| 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. | 58 | 147 | 153 | 158 | 164 | 170 | 177 | 183 | 190 | 197 | 680 | 1,597 | 1,597 | |
| Repeal the step-up basis for capital gains at death | 6 | 11 | 12 | 13 | 15 | 17 | 19 | 22 | 24 | 27 | 57 | 166 | 166 | |
| Cap the value of itemized deductions at 28% | 38 | 48 | 51 | 54 | 57 | 60 | 63 | 66 | 69 | 72 | 248 | 577 | 577 | |
| End exclusion of foreign-earned income | 5 | 7 | 8 | 8 | 8 | 9 | 9 | 10 | 10 | 10 | 36 | 84 | 84 | |
| Deny the home mortgage interest deduction for yachts and vacation homes | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 4 | 11 | 11 | |
| Ensure all pass-through entities are subject to SECA and NIIT | 17 | 26 | 28 | 30 | 32 | 33 | 35 | 37 | 39 | 41 | 133 | 318 | 318 | |
| End deferral and reform foreign tax credit | 241 | 238 | 181 | 196 | 210 | 135 | 59 | 67 | 77 | 86 | 1,066 | 1,491 | 1,491 | |
| Anti-inversion provisions | 2 | 3 | 3 | 4 | 4 | 5 | 5 | 5 | 6 | 6 | 16 | 44 | 44 | |
| End Active Financing Exception | 5 | 8 | 8 | 8 | 9 | 9 | 10 | 10 | 11 | 11 | 38 | 89 | 89 | |
| Curb corporate deductions for stock options | 2 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 4 | 14 | 31 | 31 | |
| Limit deductibility of executive bonus pay | 4 | 7 | 6 | 6 | 6 | 5 | 6 | 5 | 5 | 4 | 29 | 54 | 54 | |
| Eliminate corporate jet provisions | 0 | 0 | 1 | 1 | 1 | 0 | 0 | 0 | 0 | 0 | 3 | 4 | 4 | |
| Reduce the deductibility of corporate meals and entertainment (25%) | 5 | 7 | 7 | 7 | 7 | 7 | 7 | 8 | 8 | 8 | 32 | 70 | 70 | |
| End direct advertising of certain foods | 1 | 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 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 17 | 33 | 33 | |
| Eliminate fossil fuel preferences (EPWA) | 10 | 14 | 14 | 14 | 15 | 15 | 15 | 16 | 16 | 16 | 67 | 145 | 145 | |
| Price carbon at $25 (refunding 25%) | 51 | 70 | 72 | 74 | 76 | 78 | 81 | 84 | 86 | 89 | 343 | 762 | 762 | |
| Reinstate Superfund taxes | 1 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 10 | 21 | 21 | |
| Unemployment Insurance Solvency Act | 2 | 3 | 4 | 4 | 5 | 7 | 6 | 6 | 7 | 7 | 19 | 52 | 52 | |
| Financial transactions tax | 179 | 184 | 189 | 195 | 200 | 206 | 212 | 218 | 225 | 746 | 1,808 | 1,808 | ||
| Excise tax on systemically important financial institutions | 8 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 49 | 101 | 101 | |
| Progressive estate tax reform | 3 | 18 | 22 | 24 | 26 | 27 | 29 | 31 | 33 | 35 | 93 | 247 | 247 | |
| Repeal excise tax on high-premium insurance plans | 0 | 0 | -5 | -9 | -11 | -14 | -17 | -20 | -25 | -31 | -25 | -132 | -132 | |
| Eliminate highway fund shortfall with $10.25 per barrel tax on oil | 7 | 15 | 21 | 28 | 35 | 38 | 38 | 39 | 39 | 39 | 106 | 299 | 299 | |
| Enact comprehensive immigration reform (total budgetary effect) | -12 | 19 | 20 | 24 | 30 | 32 | 38 | 44 | 50 | 57 | 80 | 301 | 301 | |
| Additional spending policy adjustments (Impact on primary budget deficit, billions of dollars) | ||||||||||||||
| Repeal BCA mandatory and discretionary cuts (both phases) | -36 | -57 | -65 | -70 | -75 | -78 | -80 | -91 | -70 | -69 | -303 | -692 | -692 | |
| Infrastructure investments | -254 | -254 | -254 | -193 | -193 | -166 | -166 | -166 | -166 | -166 | -1,147 | -1,975 | -1,975 | |
| Additional job creation credits and provisions | -173 | -123 | -67 | -84 | -102 | -120 | -137 | -155 | -173 | -189 | -207 | -496 | -1,357 | -1,530 |
| Investments (NDD increases over removing BCA) | -79 | -80 | -90 | -110 | -142 | -171 | -194 | -213 | -232 | -251 | -271 | -593 | -1,754 | -1,833 |
| Preschool for all | -1 | -3 | -5 | -7 | -9 | -10 | -10 | -10 | -9 | -9 | -25 | -73 | -73 | |
| Affordable college and refinancing student loans | -93 | -35 | -36 | -37 | -38 | -39 | -40 | -41 | -42 | -43 | -239 | -443 | -443 | |
| Extend CHIP funding through 2019 | -1 | -2 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2 | -2 | -2 | |
| Restore SNAP benefit levels and child nutrition | -1 | -1 | -2 | -2 | -2 | -2 | -2 | -2 | -2 | -2 | -2 | -9 | -20 | -21 |
| End OCO after FY17 (both 050 and 150) | 50 | 70 | 80 | 85 | 89 | 91 | 93 | 95 | 97 | 99 | 375 | 851 | 851 | |
| End Supplemental after FY16 | -3 | 0 | 2 | 5 | 7 | 8 | 9 | 9 | 10 | 11 | 13 | 60 | 60 | |
| Base DOD adjustments | 0 | 2 | 4 | 4 | 5 | 6 | 5 | 6 | 10 | 16 | 14 | 56 | 56 | |
| Negotiate Rx payments for Medicare | 0 | 17 | 36 | 44 | 44 | 47 | 49 | 55 | 65 | 73 | 141 | 430 | 430 | |
| Establish Paid Leave Partnership | 0 | -1 | -1 | -1 | 0 | 0 | 0 | 0 | 0 | 0 | -2 | -2 | -2 | |
| Public option | 2 | 20 | 23 | 23 | 26 | 27 | 29 | 31 | 33 | 35 | 94 | 248 | 248 | |
| Reform rules for Rx development/release | 1 | 1 | 2 | 2 | 2 | 2 | 3 | 3 | 3 | 3 | 8 | 22 | 22 | |
| Reduce fraud, waste, and abuse in Medicaid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 2 | 2 | |
| Bundle Medicare’s payments to health care providers | 2 | 5 | 7 | 8 | 9 | 9 | 10 | 11 | 12 | 13 | 32 | 88 | 88 | |
| Replace growth rate of civilian and veteran retirement programs with CPI-E | 0 | -2 | -4 | -6 | -9 | -12 | -14 | -18 | -21 | -25 | -20 | -110 | -110 | |
| End Family Homelessness Initiative | 0 | -1 | -1 | -1 | -1 | -1 | -2 | -2 | -2 | -2 | -4 | -13 | -13 | |
| Reduce agriculture subsidies | 0 | 2 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 11 | 25 | 25 | |
| Public financing of campaigns | -1 | -1 | -1 | -1 | -1 | -1 | -1 | -1 | -1 | -1 | -5 | -11 | -11 | |
| Net policy adjustments (primary) | -253 | -77 | 444 | 407 | 468 | 472 | 411 | 327 | 324 | 364 | 382 | 1,714 | 3,521 | 3,268 |
| Debt service impact of policy adjustments | -2 | -3 | 1 | 8 | 20 | 36 | 52 | 66 | 79 | 93 | 109 | 60 | 460 | 458 |
| Net impact of policy adjustments | -255 | -81 | 444 | 415 | 488 | 508 | 463 | 393 | 403 | 457 | 491 | 1,774 | 3,981 | 3,726 |
| CPC FY18 deficit | -814 | -568 | -158 | -269 | -308 | -451 | -537 | -634 | -763 | -839 | -916 | -1,754 | -5,444 | -6,258 |
| Memorandum | ||||||||||||||
| CPC defense discretionary outlays relative to current law defense discretionary outlays (excluding OCO) | 8 | 10 | 9 | 10 | 9 | 9 | 10 | 9 | 5 | 0 | 46 | 78 | 78 | |
| CPC defense discretionary budget authority relative to President’s FY18 budget’s proposed discretionary BA (excluding OCO) | -14 | -30 | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | -30 | -30 | -44 |
Note: Figures are for fiscal years. Numbers may not add due to rounding. NIIT refers to net investment income tax; SECA refers to Self-Employment Contributions Act.