Reducing the Deficit: Spending and Revenue Options

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Congress of the U.S., Congressional Budget Office, 1996 - 496 pages

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Contents

Broaden Taxes on Wealth and Capital Gains REV23 Tax Capital Gains from Home Sales
56
REV24 Tax Capital Gains Held Until Death
58
REV25 Increase Estate and Gift Taxes
61
Curtail Income Tax Preferences for Businesses REV26 Amortize a Portion of Advertising Costs
63
REV27 Eliminate PrivatePurpose TaxExempt Bonds
65
REV28 Reduce Tax Credits for Rehabilitating Buildings
67
REV29 Repeal the Possessions Tax Credit
68
REV30 Disallow Interest Deductions for CorporateOwned Life Insurance Loans
70
REV31 Repeal the LowIncome Housing Credit
71
REV32 Repeal the Tax Preference for BadDebt Reserves of Thrift Institutions
73
REV33 Tax Credit Unions Like Other Thrift Institutions
75
REV34 Repeal Tax Preferences for Extractive Industries
76
REV35 Capitalize the Costs of Producing Timber
78
REV36 Repeal the Partial Exemption for Alcohol Fuels from Excise Taxes on Motor Fuels
79
Impose BroadBased Taxes on Consumption REV37 Impose a ValueAdded Tax
81
REV38 Impose a BroadBased Energy Tax
83
Increase Excise Taxes REV39 Increase Excise Taxes on Tobacco and Alcoholic Beverages
86
REV40 Increase Taxes on Petroleum and Motor Fuels
88
THREE
97
Military Health Care
100
The International Affairs Budget
103
DEF13 Defer Modernization of Tactical Airlift
131
DEF14 Retire Excess KC135 Tankers
133
DEF15 Make the Army Responsible for Close Air Support
135
DEF16 Freeze Funding for Military Space Programs
137
Army Programs DEF17 Reduce the Number of Army Light Divisions
139
DEF18 Eliminate Four Guard Divisions
141
DEF19 Cancel the Armys Tank Upgrade Program and Lay Away Production Facilities
143
DEF20 Cancel the Armys Comanche Helicopter Program
145
DEF21 Preposition Army Forces on Land Rather Than Afloat
147
Other Investment DEF22 Cut Spending for DualUse Technology Programs to Historical Levels
149
Military Personnel DEF23 Assign a Wartime Function to Military Personnel in Training or Transit
151
DEF24 Restructure Military Housing Allowances
152
DEF25 Reduce the Basic Allowance for Subsistence of Enlisted Personnel
154
DEF26 Restructure Officer Accession Programs
156
97
158
DEF28 Restructure the Bonus Program for Nuclear Officers
159
DEF29 Restructure Reserve Compensation
160
DEF30 Deny Unemployment Compensation to Service Members Who Voluntarily Leave Military Service
162
DEF31 Adopt HMO Staffing Patterns in Military Medical Facilities
163
DEF32 Revise Cost Sharing for Military Health Care Benefits
165
DEF33 Downsize the Military Medical System
167
DEF34 Close the Uniformed Services University of the Health Sciences
169
Operation and Maintenance DEF35 Close and Realign Additional Military Bases
171
DEF36 Reduce Professional Development Education
173
DEF37 Reduce Funding for DOEs Cleanup Program
175
DEF38 Consolidate Pilot Training and Delay Buying the Joint Primary Aircraft Training System
177
DEF39 Increase Competition Between PrivateSector and Department of Defense Housing
179
DEF40 Raise Tobacco Prices in Military Commissaries to Near Market Levels
181
DEF41 Reduce the DoD Civilian Acquisition Workforce
183
DEF42 Encourage Private Ownership of Industrial Assets Used in Defense Production
185
DEF43 Eliminate Nonappropriated Fund Subsidies to Morale Welfare and Recreation Activities That Operate Like Businesses
187
DEF44 Privatize Public Maintenance Depots and Use Competition to Allocate Tasks
190
International Programs DEF45 Reduce State Department Funding and Eliminate Miscellaneous Foreign Affairs Activities
193
DEF46 Eliminate Overseas Broadcasting
195
DEF47 Recover the Full Cost of Military Exports
197
DEF48 Reduce Security Assistance
199
103
204
DOM30 Eliminate Airport GrantsinAid
259
DOM31 Eliminate the Essential Air Service Program
260
DOM32 Eliminate NASAs Support for Producers of Commercial Airliners
261
Community and Regional Development DOM33 Eliminate Certain Rural Development Programs
263
DOM34 Eliminate the Economic Development Administration
265
DOM35 Eliminate the Appalachian Regional Commission
266
DOM36 Eliminate or Restrict Community Development Block Grants
267
DOM37 Eliminate Federal Support for Tennessee Valley Authority Activities
269
DOM38 Consolidate Area Offices of the Bureau of Indian Affairs
271
DOM39 Eliminate the Neighborhood Reinvestment Corporation
272
DOM40 Eliminate the Minority Business Development Agency
274
Education Training Employment and Social Services DOM41 Eliminate Funding for Head Start
276
DOM42 Eliminate or Reduce Funding for Title I Education for the Disadvantaged
278
DOM43 Eliminate Funding for Bilingual Education
280
DOM44 Eliminate Funding to School Districts for Impact Aid
281
DOM45 Eliminate Funding for the Safe and DrugFree Schools and Communities Act
282
DOM46 Reduce Funding for Elementary and Secondary Education Programs
283
DOM47 Eliminate 18 Small Grant Programs in the Department
285
DOM51 Eliminate the Senior Community Service
291
DOM55 Eliminate Subsidies for Health Professions Education
298
Income Security
305
Veterans Benefits and Services
311
DOM63 Revise the Mandatory Sentencing System for Some
312
FIVE ENTITLEMENTS AND OTHER MANDATORY SPENDING
325
BOXES
335
ENT05 Raise Grazing Fees on Public Lands
339
ENT10 Increase Producer Assessments to Participants in the Federal
345
ENT15 Auction Advanced Television Licenses
352
Education
358
ENT21 Raise the Cost of the Student Loan Program to Lenders Guaranty Agencies and Schools
360
ENT22 Reduce Student Loan Spending by Including Home Equity in the Determination of Financial Need and Modifying the Simplified Needs Test
361
Health ENT23 Increase User Fees on Products Regulated by the FDA
362
Income Security ENT24 Reduce the 50 Percent Floor on the Federal Share of AFDC Foster Care and Adoption Assistance Payments
364
ENT25 Reduce Matching Rates for Administrative Costs in the Foster Care and Adoption Assistance Programs
365
ENT26 Establish Work Requirements for Food Stamp Recipients
366
ENT27 Reduce Federal Employee Retirement Costs
367
ENT28 End or Scale Back Trade Adjustment Assistance
375
ENT29 Increase Targeting of Child Nutrition Subsidies
376
ENT30 Eliminate Small Food Stamp Benefits
378
ENT31 Reduce the 20 Exclusion from Income in Supplemental Security Income
379
ENT32 Eliminate Individual Functional Assessments as a Means for Children to Qualify for Supplemental Security Income
380
ENT33 Create a Sliding Scale for Childrens SSI Benefits Based on the Number of Recipients in a Family
381
ENT34 Restrict Legal Immigrants Eligibility for Welfare Programs
383
ENT35 Limit Spending in the Emergency Assistance Program
385
ENT36 Eliminate the 50 Child Support Payment to AFDC Families
386
ENT37 Replace Federal Programs Assisting Needy Families with Block Grants to the States
387
ENT38 Reduce the Federal Matching Rate and Increase Fees in
390
Veterans Benefits and Services
397
ENT48 Restrict CostofLiving Adjustments in NonMeansTested
404
ENT50 Charge Federal Employees Commercial Rates for Parking
412
DEFICIT REDUCTION
415
for Medicaid Benefits 19962002
435
SEVEN ADDRESSING THE IMPACT OF THE AGING POPULATION
447
and Two Illustrative Options
457
A Estimated Savings from the Administrations 1997 Request
475
Strategic Systems
477
GLOSSARY
485
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Page 488 - Government over the life of the loan after adjusting for estimated defaults, prepayments, fees, penalties and other recoveries. (C) The cost of a loan guarantee shall be the net present value when a guaranteed loan is disbursed of the cash flow from— (I) estimated payments by the Government to cover defaults and delinquencies, interest subsidies, or other payments, and (II) the estimated payments to the Government including origination and other fees, penalties and recoveries.
Page 223 - ... coal-producing regions in particular. DOM-08 ELIMINATE ENERGY CONSERVATION GRANT PROGRAMS Budget Authority Outlays Budget Authority Outlays From the 1996 Funding Level 138 34 138 110 138 131 138 138 138 138 From the 1996 Funding Level Adjusted for Inflation 142 35 146 115 150 139 155 150 159 155 138 138 164 159 828 689 916 753 This proposal would halt new appropriations for three block grant programs that support energy conservation activities by the states. In 1996, the biggest of those appropriations...
Page 493 - ... liquidated (and outlays occur) by the maturing of interest coupons in the case of some bonds, or by the issuance of bonds or notes (or increases in the redemption value of bonds outstanding). Outlays during...
Page 491 - A measure of additions to the capital stock that does not subtract depreciation of existing capital. gross national product (GNP): The total market value of all goods and services produced in a given...
Page 99 - Forces 550 107 360 500 126 432 500 154 336 SOURCE: Congressional Budget Office using data from Office of the Secretary of Defense, Annual Report to the President and the Congress (March 1996). NOTE: ICBMs = intercontinental ballistic missiles. a. The Bottom-Up Review did not provide goals for all types of forces.
Page iii - The policy options included in this report come from many sources, and most have been considered by the Congress at some time. In accordance with CBO's mandate to provide objective and impartial analysis, the discussion of each option presents the cases for and against it as fairly as possible. CBO does not endorse the options included, nor does exclusion of any proposal imply a recommendation. All divisions of the Congressional Budget Office contribute to this report.
Page 101 - ... suggest that R&D spending will decline considerably through 2000 as several expensive systems currently in development move to the procurement phase. That shift, together with a boost to procurement spending in future budgets, will return R&D spending to close to its historical level of about one-fourth of procurement spending. A few of the options would slow the development programs for new weapons. One (DEF-22) would reduce spending for dual-use technology programs. Roles and Missions The Commission...
Page 11 - without discretionary inflation" assume that discretionary spending remains frozen in dollar terms at the level of the 1998 caps. na = not applicable a These changes represent only one of a large number of possible paths that would lead to a balanced budget The exact path depends on when deficit reduction begins and the specific policies adopted by the Congress and the President The path illustrated in this table is not based on any specific policy assumptions but does assume that policies are fully...
Page 14 - Economic Assumptions (By fiscal year) Actual 1995 1996 1997 1998 1999 2000 2001 2002 Individual Income Taxes Corporate Income Taxes Social Insurance Taxes Excise Taxes Estate and Gift Taxes Customs Duties Miscellaneous Total On-budget Off-budget...
Page 485 - Appropriation Act A statute, under the jurisdiction of the House and Senate Committees on Appropriations, that generally provides legal authority for federal agencies to incur obligations and to make payments out of Treasury for specified purposes.

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