Content

The Problem
The Solution

 Deficit Reduction White Paper #1

Deficit Reduction White Paper #1
Comparison of Federal Deficit Reduction Recommendations
December 14, 2010

 

With the recent surge of proposals to reduce the federal deficit, an array of recommendations have been made for discretionary spending, entitlement programs and the federal tax system to provide a sustainable path for America’s fiscal future. NCSL staff has accumulated the proposals from a few of the more prominent reports to provide an overview of various suggestions to restrain the soaring federal debt.


The Players
 

Bipartisan Policy Center (BPC)
Restoring America’s Future
November 17, 2002
http://bipartisanpolicy.org/sites/default/files/FINAL%20DRTF%20REPORT%2011.16.10.pdf

On January 25th, 2010, the Bipartisan Policy Center launched a Debt Reduction Task Force to develop a long-term plan to reduce the debt and place the nation on a sustainable fiscal path. The two Co-Chairs of the Commission are Pete Domenici, former Chairman of the Senate Budget Committee, and Dr. Alice Rivlin, former Director of the Office of Management and Budget.

 

Bowles-Simpson Proposal
CoChairs Proposal
November 10, 2010
http://www.fiscalcommission.gov/sites/fiscalcommission.gov/files/documents/CoChair_Draft.pdf

Erskine Bowles and Alan Simpson are Co-Chairs of President Obama’s National Commission on Fiscal Responsibility and Reform. Bowles served as Chief of Staff for President Bill Clinton and Simpson is a former Republican Senator from Wyoming.

 

Brookings Institution/New America Foundation
The Future is Now: A Balanced Plan to Stabilize Public Debt and Promote Economic Growth
September 30, 2010
http://www.brookings.edu/~/media/Files/rc/papers/2010/0930_budget_deficit_galston/0930_public_debt_galston.pdf

Bill Galston is Ezra Zilkha Chair in Governance Studies at the Brookings Institution. Maya MacGuineas is the Director of the Fiscal Policy Program at the New America Foundation.


Comeback America Initiative (CAI)
The Nation’s Fiscal Challenge and the Way Forward
October 20, 2010
http://ncf.uschamber.com/wp-content/uploads/David-Walker_Slides1.pdf

David M. Walker, former U.S. Comptroller General, formed the Comeback America Initiative after leaving the Peter G. Peterson Foundation.

 

The Committee for a Responsible Federal Budget (CFRFB)
http://crfb.org/

The Committee for a Responsible Federal Budget (CFRFB) has focused on several policies, such as tax expenditures, social security and health care in their Let’s Get Specific series. CFRFB is made up of some of the nation’s leading budget experts including many of the past Directors of the Budget Committees, the Congressional Budget Office, the Office of Management and Budget and the Federal Reserve Board.

 

Esquire
How to Balance the Federal Budget (in Three Days)

October 13, 2010
http://www.esquire.com/blogs/politics/federal-budget-statistics-1110

The Esquire Commission to Balance the Federal Budget — comprised of former U.S. Senators Bill Bradley, Bob Packwood, Gary Hart, and John Danforth, and chaired by MSNBC's Lawrence O'Donnell — met in New York in August, with the goal of creating an actionable plan to balance the federal budget.

 

The National Commission on Fiscal Responsibility and Reform
The Moment of Truth
December 1, 2010
http://www.fiscalcommission.gov/sites/fiscalcommission.gov/files/documents/TheMomentofTruth12_1_2010.pdf

President Obama created the bipartisan Commission on Fiscal Responsibility and Reform to address the nation’s fiscal challenges. The goal of the 18-member group is to improve the fiscal situation in the medium term and to achieve fiscal sustainability over the long run.

 

Peter G. Peterson Foundation/Pew Charitable Trusts/The Committee for a Responsible Federal Budget
Getting Back in the Black
November 10, 2010
http://budgetreform.org/sites/default/files/Getting_Back_in_the_Black.pdf

To modernize an outdated congressional budget process in light of the daunting economic challenges facing the nation, the Peter G. Peterson Foundation, The Pew Charitable Trusts and the Committee for a Responsible Federal Budget have launched a partnership to build a bipartisan consensus for a core set of reforms. The Peterson-Pew Commission on Budget Reform has convened the nation’s preeminent experts to make recommendations for how best to improve the nation’s fiscal future and how best to strengthen the federal budget process. The Commission began its work in January 2009 and issued its first report, Red Ink Rising.

 

Rep. Jan Schakowsky’s Deficit Reduction Plan
November 16, 2010
http://schakowsky.house.gov/images/stories/1118_Schakowsky_Deficit_Reduction_Plan.pdf

Rep. Jan Schakowsky, a member of the National Commission on Fiscal Responsibility and Reform, released an alternative proposal to the Bowles-Simpson recommendation with the goal of balancing the primary budget in 2015.

 

Rivlin-Ryan Health Care Proposal
Alice Rivlin and Rep. Paul Ryan
November 17, 2010
http://www.cbo.gov/ftpdocs/119xx/doc11966/11-17-Rivlin-Ryan_Preliminary_Analysis.pdf

Alice Rivlin, former Director of the Office of Management and Budget, and Rep. Paul Ryan from Wisconsin, proposes specific recommendations on social security, Medicaid and Medicare.

 

Rep. Paul Ryan’s Roadmap 2.0
A Roadmap for America’s Future
January 2010
http://www.roadmap.republicans.budget.house.gov/UploadedFiles/Roadmap2Final2.pdf

The Roadmap, updated since its previous introduction in 2008, draws on Americans’ strengths to restore the nation’s legacy of leaving the next generation better off. The document was prepared by Ranking Member of the House Budget Committee Rep. Paul Ryan.

For more information on NCSL’s report, please contact NCSL staff below.

Michael Bird
444 North Capitol Street, NW
Washington, DC 20001
Phone: (202) 624-8686
Fax: (303) 363-7800
Email: michael.bird@ncsl.org

Corina Eckl
7700 E. First Place
Denver, CO 80230
Phone: (303) 856-1388
Fax: (303) 364-7800
Email: corina.eckl@ncsl.org

Jeff Hurley
444 North Capitol Street, NW
Washington, DC 20001
Phone: (202) 624-7753
Fax: (303) 363-7800
Email: jeff.hurley@ncsl.org

 


 

The Problem 

Projected Spending Revenues for Long-Term Budget Scenarios
(as percentage of gross GDP)

Extended Baseline Scenario

 

Spending

Revenue

Deficit

Debt

2010

24.3

14.9

-9.4

62

2020

23.5

20.7

-2.7

66

2035

27.6

23.3

-4.3

79

Alternative Fiscal Scenario

 

Spending

Revenue

Deficit

Debt

2010

24.3

14.9

-9.4

62

2020

25.9

19.3

-6.6

87

2035

35.2

19.3

-15.9

185

Source: Congressional Budget Office, June 2010
Note: The extended-baseline scenario adheres closely to current law, following CBO’s 10-year baseline budget projections through 2020 (with adjustments for the recently enacted health care legislation) and then extending the baseline concept for the rest of the long-term projection period. The alternative fiscal scenario incorporates several changes to current law that are widely expected to occur or that would modify some provisions that might be difficult to sustain for a long period. 


The Solutions
 

Revenue

Taxes Generally

BPC

  • Tax all capital gains and dividends as ordinary income (top rate of 27%) with $1,000 exclusion for capital gains (or losses)
  • Reduce income tax rates to 15% and 27%
  • Reduce corporate tax rate to 27%
  • Repeal the alternative minimum tax
  • Introduce a 6.5% “Debt Reduction Sales Tax, phased in over 2 years (3% in 2012, 6.5% in 2013)
  • Extend estate tax at 2009 levels (baseline assumption)
  • 1-year social security payroll tax holiday for employees and employers
  • New revenues from health and social security policies
  • Enact a new 6.5% national sales tax

CAI

  • Reform the alternative minimum tax
  • Address the tax gap
  • Enact comprehensive individual tax reform
  • Impose a consumption tax and a carbon tax
  • Increase aviation security fees

 

Esquire

  • Increase the gasoline tax from 18 cents per gallon to $1.18 per gallon
  • Keep tax rates low for the next decade
  • Include all new state and local government workers in Social Security
  • Reform the alternative minimum tax
  • Eliminate biofuel subsidies

NAF/Brookings

  • Reduce the payroll tax by imposing a carbon tax
  • Address growing income inequality
  • Implement a war surtax
  • Enact revenue neutral corporate tax reform
  • Provide an exclusion for lower-wage earners on the payroll tax and increase the cap

 

National Commission

  • Have three tax rates of 12, 22, and 28%
  • Repeal alternative minimum tax
  • Tax all capital gains and dividends at ordinary income rates

Ryan Plan

  • Holds revenue to no more than 19.0% of GDP for the foreseeable future
  • Offers taxpayers choice of paying income taxes under a new “Simplified Tax” or under the existing tax code
  • Simplified tax rate would clear existing tax deductions and credits and lowers tax schedule to two low rates
  • Tax rates of 10% and 25%
  • Repeals AMT
  • Eliminates corporate income tax and replaces with a business consumption tax of 8.5%

Schakowsky Plan

  • Tax capital gains and dividends as ordinary income
  • Reform estate tax with progressive marginal rates
  • Auction cap and trade emission allowances and rebate 50% to consumers
  • Raise rates private sector pays for use of public resources

 

 

 

Co-Chairs Proposal

Option #1

Option #2

Option #3

  • Establish three rates for individuals, one rate for corporations
  • Treat capital gains/dividends as ordinary income
  • Deduct savings from tax expenditure reforms and use for deficit reduction

 

  • Repeal Alternative Minimum Tax
  • Triple the standard deduction
  • One corporate income tax rate – 26%
  • Make the research and development credit permanent
  • Eliminate or modify several business tax expenditures

 

  • Enact tax reform by 2012

 

 

Tax Expenditures

BPC

  • Restructure itemized deductions and eliminate most tax expenditures
  • Replace the mortgage interest and charitable deductions with 15% refundable credits
  • Cap employer health exclusion in 2018 and then phase out over 10 years

 

CFRB

  • Repeal employer health exclusion and institute refundable health care tax credit
  • Phase down home mortgage deduction from $1 million to $500,000 and eliminate deduction for second home
  • Phase out state and local taxes deduction
  • Consolidate tax breaks for education and savings
  • Establish PAYGO for tax expenditures
  • Impose moratorium on new tax expenditures
  • Impose floor on charitable deductions at 2% of income
  • Simplify, redesign EITC, child tax credit, dependent exemption, standard deduction into a Work Credit and a Family Credit

Esquire

·         Limit itemized deductions for high earners

·         Keep tax rates low for the next decade

·         Include all new state and local government workers in Social Security

·         Repeal employer health exclusion and institute refundable health care tax credit

·         Limit personal exemptions

·         Limit state and local sales tax deduction

NAF/Brookings

  • Tax expenditures – cut by 10% and cap the growth thereafter
  • Phase down home mortgage deduction from $1 million to $500,000 and eliminate the tax break for vacation homes
  • Phasing out the deduction for state and local taxes
  • Replace employer health exclusion with flat credit
  • Restrict and reduce tax expenditures
  • Phase out state and local taxes deduction
  • Consolidate tax breaks for education and savings
  • Establish PAYGO for tax expenditures

National Commission

  • Eliminate all income tax expenditures
  • Include permanent or temporary provisions for the earned-income tax credit and mortgage interest for principal residences
  • Eliminate all tax expenditures for businesses

Ryan Plan

  • Holds revenue to no more than 19.0% of
  • GDP for foreseeable future
  • Offers taxpayers choice of paying income taxes under a new “Simplified Tax” or under the existing tax code
  • Simplified tax rate would clear existing tax deductions and credits and lowers tax schedule to two low rates
  • Tax rates of 10% and 25%
  • Repeals AMT
  • Eliminates corporate income tax and replaces with a business consumption tax of 8.5%

Schakowsky Plan

  • Close dividend loophole for foreign source income
  • Limit deductibility of financial corporate debt interest payments
  • Close active financing tax deferral for financial firms
  • Repeal tax subsidy for mergers and acquisitions
  • Eliminate deduction for business meals and entertainment

 

 

Co-Chairs Proposal

Option #1

Option #2

Option #3

  • Eliminate all of them
  • Keep child tax credit and EITC
  • Keep child tax credit and EITC and reform mortgage, health and retirement tax benefits at 80% of current levels

 

  • Repeal state and local tax deduction
  • Repeal cafeteria plan and miscellaneous itemized deductions
  • Reform mortgage deduction by eliminating deduction for second residences and home equity loans and restricting deduction on primary residence to mortgages $500,000 or less
  • Limit charitable deductions to a floor of 2% of AGI
  • Modify/repeal several tax expenditures
  • Cap income tax exclusion for employer provided health care at actuarial value of FEHBP standard option

 

  • Across-the-board “haircut” for itemized deductions, employer health exclusion, and general business credits in 2013 if tax reform not enacted
  • “Haircut” limited to 85% of individual deductions in 2015; same for business tax credits
  • “Haircut” increases over time until tax reform enacted

 

 

Discretionary

Discretionary Spending Generally

BPC

  • Enforce spending freeze through caps and sequestration
  • Freeze non-defense discretionary spending for 4 years
  • Reduce farm spending by eliminating all farm payments to producers with AGI greater than $250,000
  • Terminate ineffective programs

CAI

  • Delay NASA missions
  • Increase tenant payments in federal-assisted housing
  • Reduce veterans’ disability payments to account for social security disability payments
  • Sell portion of TVA power assets
  • Eliminate New Starts transit program
  • Eliminate funding for the Clean Water and Safe Drinking Water State Revolving Funds
  • Eliminate or reduce flood insurance subsidies on certain structures
  • Eliminate state airport grants for large and medium hub airports
  • Prohibit re-enrollments in conservation reserve program
  • Eliminate Department of Energy applied research on energy efficiency and renewable technologies

Co-Chairs Proposal

  • Impose annual spending caps. Enforce with 60 vote point of order against excessive spending (Senate) and non-amendable point of order (House) and sequestration; establish firewall between domestic and defense spending with no borrowing from either through FY15
  • Use FY10 spending levels for FY12. Require 1% cut each year for FY13, FY14, FY15; index budget authority to inflation for FY15-20
  • Cut $200 billion by 2015; $100 billion each from defense and domestic spending
  • Cut the federal workforce by 10%
  • Slow foreign aid
  • Eliminate earmarks
  • Eliminate regional subsidies
  • Drop wealthier communities from the Community Development Block Grant program
  • Protect Infrastructure, education, research and development
  • Establish separate budget for disaster funds
  • Establish bipartisan Cut and Invest Committee to deauthorize outdated, inefficient, low-priority programs and recommend high-priority, long-term investments
  • Biennial budgeting
  • Eliminate earmarks

Esquire

  • Enact president’s proposed spending-program terminations
  • Cut federal workforce by 5%
  • Reform farm subsidies
  • Eliminate all earmarks
  • Delay NASA missions
  • Eliminate biofuel subsidies

NAF/Brookings

  • Freeze domestic discretionary for three years, limit to inflation through FY20
  • Protect Infrastructure, education, research and development
  • Index federal government salaries to private sector wage growth

National Commission

  • Cap discretionary spending through 2020
  • Enforce caps through point of order and abatement
  • Establish a disaster fund
  • Establish cut-and-invest committee
  • Reduce Congressional and White House budgets by 15%
  • Eliminate earmarks
  • Sell excess federal real property
  • Impose three-year pay freeze on Congressional members and federal workers
  • Reduce agriculture program spending through 2020

Ryan Plan

  • Establish discretionary spending limits for FY11-19 and total spending limits FY11-83 accompanied by spending reduction orders

Schakowsky Plan

  • Provide $200 billion in additional funds in FY11 and FY12 for education, law enforcement, unemployment insurance, food stamps, Medicaid, infrastructure and the Local Jobs for America Act 
  • Eliminate the Overseas Private Investment Corporation
  • Sell excess federal property
  • Reduce unnecessary federal printing costs
  • Implement GAO recommendations to reduce improper federal payments

 

Transportation

CAI

  • Reduce highway spending

Co-Chairs Proposal

  • Move to mandatory side of budget and prohibit general revenue fund bailouts
  • Raise gas tax gradually by 15 cents beginning 2013

Esquire

  • Increase federal gas tax by $1 per gallon

National Commission

  • Fully fund the transportation trust fund, dedicating a 15-cent per gallon gas tax increase between 2013 and 2015

Schakowsky Plan

  • $200 billion in FY11 and FY12 for infrastructure and other investments

 

Defense

BPC

  • Freeze defense discretionary spending for 5 years

CAI

  • Reduce military personnel numbers
  • Achieve spending reductions through reduced activity in Afghanistan and Iraq
  • Reform military compensation
  • Reduce nuclear arsenal
  • Scale back fleets
  • Reform Department of Defense health care system
  • Numerous illustrative spending reduction outlines 

Co-Chairs Proposal

  • Cut $100 billion from defense
  • Freeze federal bonuses for Department of Defense employees for 3 years/freeze non-combat military pay at 2011 levels for 3 years
  • Numerous illustrative spending reduction outlines 

Esquire

  • Enact administration’s proposed weapons-systems cuts
  • Restructure the military along strategic lines
  • Achieve spending reductions through reduced activity in Afghanistan and Iraq
  • Reduce military personnel numbers

 

NAF/Brookings

  • Assume war spending will decrease
  • Reduce outdated weapons systems
  • Reduce increased compensation for military personnel
  • Reform defense contracting
  • Cover all war costs beyond 2015 with a war tax
  • Reduce nuclear arsenal
  • Cancel unneeded programs
  • Scale back fleets
  • Scale back research and development

National Commission

  • President must propose annual limits for war spending
  • Numerous illustrative spending reduction outlines 

Schakowsky Plan

  • Apply savings endorsed by Secretary Gates
  • End missile defense programs
  • Reduce military personnel
  • Reduce strategic nuclear arsenal
  • Numerous illustrative spending reduction outlines 

 

 

Mandatory / Entitlements

Health Generally

 

BPC

  • Implement Medical Malpractice Tort Reform

 

Co-Chairs Proposal

  • Implement Medical Malpractice Tort Reform
  • Reduce graduate medical education
  • Set global target for total federal health expenditures after 2020 (includes Medicaid, CHIP, exchange subsidies, Medicare). If target is breached, consider additional reforms such as increased premiums, fee-for-service system.

Esquire

  • Implement Medical Malpractice Tort Reform
  • Reform Fee-for-Service Insurance System

NAF/Brookings

  • Implement Medical Malpractice Tort Reform

National Commission

  • Medical malpractice reform
  • Establish a global budget for total federal health care costs and limit the growth to GDP plus 1%

Rivlin-Ryan Plan

  • Implement Medical Malpractice Tort Reform
  • Repeal CLASS program for long-term insurance

Ryan Plan

  • Institute grants to state for tort litigation alternatives
  • Increase monthly contribution limits for health savings accounts
  • Expand association health plans
  • Establish system of state-based health care exchanges for purchase of private health insurance and enhanced marketability of private health plans
  • Supplement costs of private health insurance for eligible low-income families through distribution of supplemental debit cards
  • Repeal CHIP program

Schakowsky Plan

  • Create public option
  • Ban anticompetitive patent settlements regarding brand-name/generic drugs

 

Medicare

BPC

  • Raise premiums for Part B for well-off to cover 35% of program costs
  • Increase rebates from pharmaceutical companies
  • Modernize Medicare benefits package, including co-payments
  • Bundle Medicare payments for post-acute care
  • Transition Medicare to premium support system and limit growth in per-beneficiary federal support; or beneficiaries purchase private plan on the exchange
  • Implement permanent fix to mechanisms establishing physician reimbursements

Co-Chairs Proposal

  • Reduce doctor reimbursements – reward quality through payment reforms and drug rebates
  • Expand cost-sharing in Medicare and expand cost containment demonstrations
  • Place dual eligibles in Medicaid Managed Care

CFRFB

  • Raise eligibility age gradually to 67 and index for longevity
  • Increase Cost Sharing
  • Put into separate budget or transform into premium support system

NAF/Brookings

  • Raise premiums for Part B for well-off to cover 35% of program costs
  • Raise eligibility age gradually to 67 and index for longevity
  • Raise Medicare copayments with exemptions for low-income retirees

National Commission

  • Increase government authority and funding to reduce Medicare fraud
  • Reform Medicare cost-sharing rules

 

Schakowsky Plan

  • Require full drug rebates from drug manufacturers to full premium subsidy eligible individuals in Part D
  • Establish a Medicare-administered Part D drug plan to compete with private plans
  • Require Medicare to negotiate for drug prices

Rivlin-Ryan Plan

  • Raise eligibility age gradually to 67 and index for longevity
  • Individuals turning 65 in 2021 would not enroll in Medicare; instead, would receive private health insurance voucher
  • Dual eligibles would no longer receive premium payment assistance from Medicaid; instead, federal government would establish and fund medical savings accounts
  • Modify Medicare’s cost-sharing provisions and change cost-sharing requirements that can be covered by supplemental insurance provided through Medigap policies starting 2013 and indexing thereafter

Ryan Plan

  • Establish separate program for new Medicare beneficiaries beginning in 2021, revise various Medicare program features, establish formula for reducing Part D premium subsidies based on income, raise eligibility age

 

Medicaid

BPC

  • Apply managed care principals to all states for aged SSI beneficiaries
  • Commencing 2018, reduce per-beneficiary cost growth by 1% annually by reforming shared state-federal financing arrangement or through a negotiated program responsibility allocation agreement that each level of government would finance and administer

Co-Chairs Proposal

  • Reduce federal spending on Medicaid administrative costs
  • Increase nominal Medicaid copays
  • Reduce state provider tax levies
  • Accelerate Disproportionate Share Hospital payment cuts
  • Convert federal share of Medicaid payments for long-term care into a capped allotment

CFRFB

  • Put into separate budget or transform program
  • Institute premium support system

National Commission

·         Eliminate state gaming of Medicaid tax gimmick

·         Place dual eligibles in Medicaid managed care

·         Reduce funding for Medicaid administrative costs

·         Allow expedited application for Medicaid waivers in well-qualified states

·         Extend Medicaid drug rebate dual eligibles in Part D

Rivlin-Ryan Plan

  • Commencing 2013, convert federal Medicaid payments into a block grant which would increase annually to reflect Medicaid population growth and GDP
  • Federal government would fund incremental costs of the Medicaid expansion enacted in 2010 through 2020 and these costs would be added to the block grant amount

 

Ryan Plan

  • Amend Medicaid into program of grants to states for acute care for low-income and disabled individuals, long-term care services and supports, survey and certification of medical facilities, program integrity and administration

 

Other Mandatory/Entitlement Programs

BPC

  • Reduce crop subsidies
  • Reform federal crop insurance
  • Reform civilian retirement
  • Cap 16 conservation programs

CAI

  • Eliminate subsidized loans to graduate students
  • Reform and/or reduce COLA payments

Co-Chairs Proposal

  • Reduce crop subsidies
  • Reform and/or Reduce COLA payments
  • Reform military retirement system
  • Increase employee retirement contribution
  • Eliminate in-school interest subsidies for student loans
  • End payments to states and tribes for abandoned mines
  • Extend FCC authority to auction radio spectrum licenses
  • Index all fixed-dollar user fees to inflation

Esquire

  • Reduce crop subsidies
  • Establish means-testing for crop subsidies
  • Reform and/or Reduce COLA payments

NAF/Brookings

  • Need strong safety net for low-income individuals
  • Phase out crop insurance subsidies and replace with insurance against catastrophic loss

National Commission

  • Reduce agriculture program spending through 2020
  • Eliminate in-school subsidies in federal student loan programs
  • Give pension benefit guarantee board authority to increase premiums
  • Eliminate payments to states for abandoned mines
  • Extend FCC spectrum auction authority
  • Index mandatory user fees to inflation

Schakowsky Plan

  • Reduce crop subsidies

 

 

Social Security

BPC

  • Implement COLA reform
  • Compel new state and local government employees to participate
  • Create new minimum benefit/old age bonus
  • Slow benefit growth for middle and upper income earners
  • Index early retirement age for longevity
  • Gradually raise payroll tax cap over 38 years to 90% of wages

Co-Chairs Proposal

  • Increase the retirement age one month every two years
  • Implement COLA reform
  • Include newly hired state and local workers in Social Security after 2020
  • Increase payroll tax base minimum to capture 90% of wages by 2050

CFRB

  • Increase retirement age
  • Implement COLA reform
  • Create new minimum benefit/old age bonus
  • Establish mandatory 2% add-on accounts with progressive
  • Slow benefit growth for middle and upper income earners
  • Index early retirement age for longevity

Esquire

  • Increase retirement age
  • Implement COLA reform
  • Expand years of service in calculating benefit
  • Compel new state and local government employees to participate

NAF/Brookings

  • Increase retirement age
  • Implement COLA reform
  • Compel new state and local government employees to participate
  • Program indexation for high earners
  • Create new minimum benefit/old age bonus
  • Reduce payroll tax by instituting carbon tax
  • Establish mandatory 2% add-on accounts with progressive
  • Slow benefit growth for middle and upper income earners
  • Index early retirement age for longevity

National Commission

  • Make retirements benefit formula more progressive
  • Provide an enhanced minimum benefit for low-wage workers
  • Gradually increase early and full retirement ages bases on increases in life expectancy
  • Gradually increase taxable maximum to cover 90% of wages by 2050
  • Adopt the chained measure of CPI
  • Cover newly hired state and local workers after 2020

Ryan

  • Increase retirement age
  • Establish a new personal social security savings program, establishes requirements for investment of personal social security savings

Schakowsky Plan

  • Eliminate payroll tax on the employer side; raise cap on earnings on employee side to 90%
  • Impose 3-4% legacy tax on all earnings over cap