-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
1/43
REPUBLI
STUDY
COMMIT
CUT,CAPA Budget f
AN
EE
AND BALANrFiscal Year
Marsc.jordan.
E2013
ch 2012ouse.gov
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
2/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
Page
EE
DGET FOR FISCAL YEAR 2013
ntentionally Left Blank
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
3/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
T A B L E O
CHAPTER 1
CHAPTER 2 S
CHAPTER 3 J
CHAPTER 4 B
APPENDIX C
A
A
S
EE
DGET FOR FISCAL YEAR 2013
C O N T E N T
HE NEED FOR REAL
HANGE
PENDING
BS THROUGH GRO
UDGET PROCESS RE
ONSTITUTIONAL
UTHORITY STATEM
DDITIONAL RESOU
MMARY TABLES
S
5
14
TH 27
FORM 31
E
NT 34
CES 35
39
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
4/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
Page
EE
DGET FOR FISCAL YEAR 2013
ntentionally Left Blank
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
5/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
CHAPTER 1AN OPENLETTERFROMTHEREPUBLICANSTUDYCOMMI
or the past three years, our nalumbered under the strangleh
excessive debt, record levels ospending, and job-killing governmeregulation. There is no doubt aboutPresident Obama and the Democratin the United States Senate have beedangerously asleep at the wheel of tAmerican economy. In February, thsubmitted a budget to Congress wit
the same tax and spend policies. Amore than 1000 days since the Senatpassed a budget, its clear that the SDemocrats have taken a pass at leaas a resultthe tough choices that lerequires.
As a result of this leadership void,
families and businesses have been fnavigate a winding, rocky, and uncWhether it is balancing the family bmake ends meet or making payrollthe week, American families and bucutting back and being more produ
F
EE
DGET FOR FISCAL YEAR 2013
|THE NEED FOR REAL
TTEE(RSC)ion hasld of
federalntit: at best,c majoritynhee President
more of
d withe lastnateershipandadership
merican
rced tortain road.dget tot the end ofsinesses aretive. The
The evidence suggests thatfailed policies has been sub
President Obama, this natitwo punch of higher food apinching our pocketbooksthe shopping cart or the gapicture is not much better.most recent statistics, morethe unemployed have beenthan six months. And acro
hundreds of thousands offrustrated by fruitless attehave simply dropped out o
Our nation has reached a crand it will take strong andto guide the nation from itsand to fulfill the promise of
potential. The RSC believecontained within this budgBalancewill set the coursegrowth and job creation annation the opportunity to f
CHANGE
the cost of thesetantial. Under
n has seen the one-nd energy pricesvery time we fill uptank. The jobs
According to thethan 45 percent ofjobless for mores the country,
iscouraged workers,pts to find jobs,the labor force.
itical decision point,ffective leadershipeconomic slumberour countrys vast
that the policiestCut, Cap, andor economicwill give our
lfill its potential.
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
6/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
At a more fundamental level, the Rthat a budget should be anchored infoundational principles of individuliberty and a free-enterprise marketThis budget proposal reflects these
Specifically, Cut, Cap, and Balance laplan to balance the federal budget i
by cutting spending, getting governthe way so Americas businesses haability to grow and create jobs, refortax code to make our nation more cand providing for real improvemenMedicare, Medicaid, and Social Seclong-term.
The path this budget lays out woulevery American better off by creatinopportunity through a time-tested rtransforming economic stagnation ieconomic strength. As the old provthere is no time like the present. It imake a changereal changeand cnations challenges and set a true co
prosperity.
Jim JordanChairman, Republican Study CommittScott GarrettChairman, Republican Study Committand Spending Task Force
ROBBING FROM OUR CHILDREFUTURE. In February, President Oreleased his Fiscal Year (FY) 2013 bUnder the policies proposed by the
FY 2013 budget, the federal budget
EE
DGET FOR FISCAL YEAR 2013
C believesthe twolsystem.eliefs.
s out afive years
ment out ofe theming thempetitive,s tority in the
makeg economiccipe fortorb goes,
s time tonfront oururse to
e
e Budget
NSama
dget.residentsill never
Figure 1 shows that there isof red ink under the PresidCBO estimates that the bud2013 will total $977 billion.record levels of governmenbecome the norm since Preoffice in January 2009. If wpath, by FY 2022, our defici
billion. The net effect of cotough decisions means thatand FY 2022, the President$6.4 trillion in deficit spendIts important to remembercatastrophic levels of spennorm. As of September 30,
deficits in U.S. history willlast five years. In the pastnational debt has grown as
2008: Debt passes $ 2009: Debt passes $
trillion marks; 2010: Debt passes $ 2011: Debt passes $trillion marks.
Unfortunately, the debt is eto grow rapidly into the futmost recent budget proposdebt increase to nearly $26with substantial tax increas
small businesses and famili
no end to the tidents budget. Theget deficit for FYThis is a result oft spending that haveident Obama tookcontinue on this
t will remain at $728
tinuing to postponebetween FY 2013policies will total
ing.
that theseing are not the2012, the five largest
ave occurred in thefour years, thefollows:
0 trillion mark;1 trillion and $12
3 trillion mark;
4 trillion and $15
pected to continueure. The Presidentsd that the nationalrillion by 2022, evens on American
es.
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
7/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
DEBT AND MORE DEBT.Much lindividual or family overspends, w
federal government spends more thin tax revenues, it goes into debt. Yyear, as the U.S. continues to overspborrow money to cover its overspenadd to our national debt.
Figure 2 shows how the Presidentsto address our nations debt. Begin2013, debt held by the public totalsof the economy. By FY 2022, this shat an historically high level of 76.3 p
h l f l h k f h l
977
702
539
0
200
400
600
800
1,000
1,200
2013 2014 201
BillionsofDolla
rs
Figure 1. The Pres
SOURCE: Congressional Budget Office
EE
DGET FOR FISCAL YEAR 2013
ke when anen thean it collectsar-after-endanddingwe
budget failsing in FY8.7 percent
are remainsercent.
b
familys monthly income.the outstanding debt will rthe family becomes a greatthe credit card company thstarted spending recklessly.increased risk, the credit caincreases the interest rate o
Much like the example aboborrowing gets charged tonational credit card. In realis really just the sum of thedebt. We pay interest on ocardor our national debt.
d d b l
529488 510
602638
2016 2017 2018 2019 2020
dent's Budget: Deficits
t a certain point,ach a level at whichr financial risk ton before the familyTo adjust for this
d companythe credit card.
e, our nationshat amounts to aity, this credit cardnationalr national creditAs the national
f f
678728
2021 2022
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
8/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
INTEREST PAYMENTS AND THDOWNGRADE. When the U.S. ma
interest payments on its debt, therespend on other priorities such as nasecurity, scientific research, and heaFigure 3 shows just how much interpaying on our national debt.
Under the Presidents budget, in FYnation will collectively owe $237 bilinterest on our national credit card.amount in perspective, this equals nthe spending by the Departments ofAgriculture, Education, HomelandHousing and Urban Development, JState combined Under President
78.780.4
79.4
60
65
70
75
80
85
90
2013 2014 2015
Percentage
Figure 2. The PresiEconomy
SOURCE: Congressional Budget Office
EE
DGET FOR FISCAL YEAR 2013
DEBTkes large
s less toionallth care.st we are
2013, ourion inTo put thisearly all of
ecurity,ustice, andbamas
The truth is that uncontrollvery real consequences. Othe first time in our nationnations long-term credit radowngraded from the goldrating. The rating agency,
justified the downgrade bathe US had not taken crediour nations overspending.as our nation continues to arun up the balance on ourour credit rating will be indowngrade. This could lecatastrophe that would impAmerican.
78.277.2 76.6 76.4 76.3
2016 2017 2018 2019 2020
ent's Budget: Debt As a Share of th
d spending hasAugust 5, 2011, forhistory, our
ting wasstandard AAAtandard & Poors,ed on the fact thatle steps to addressMuch like a family,ccumulate debt andational credit card,anger of anotherd to a financialact every single
76.3 76.3
021 2022
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
9/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
237 255300
0
200
400
600
800
2013 2014 2015
BillionsofDolla
rs
Figure 3. The Presi
SOURCE: Congressional Budget Office
9
8
9
4
6
8
10
12
14
16
Percenta
ge
Figure 4. The Presi
Share of T
EE
DGET FOR FISCAL YEAR 2013
370
442
513
581
642
2016 2017 2018 2019 2020
ent's Budget: Net Interest Paymen
1011
1314
15
ent's Budget: Interest Payments as
ax Revenues
692743
021 2022
s
15 15
a
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
10/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
The danger we face lies in our excesspending and the growing interestthat result. As the interest paymentnational credit card take up an increlarge share of our nations income (trevenues), our already damaged crebecomes at risk of another downgra
Figure 4 shows just how much of ainterest payments are on the federal2013, interest will take up nine perctax revenues. The credit rating ageour credit rating on a number of facincluding how much the country spinterest payments on our national cThe so-called danger zone for do
generally occurs at a 14 percent interevenue share. According to the noCBOs latest analysis of the Presidethe U.S. will cross that threshold in
-585
-345-26
-409
-34
000
-800
-600
-400
-200
0
BillionsofDollar
s
Figure 5. Added
EE
DGET FOR FISCAL YEAR 2013
siveayments
s on ourasinglyaxdit ratingde.
urdenbudget. Innt of ourcies baseors,nds on
edit card.ngrade
rest-to--partisants budget,019.
Families facing outsized cresee their interest rates rise,interest payments increase.card is no different. If we srates because of a credit dopressures such as inflation,event, our national credit cskyrocket.
Figure 5 shows how signifiinterest rates on our debt coverall budget picture. TheCBOs deficit projections oassuming no changes to cubars represent our deficitsin interest rates. According
will total nearly $3 trillion2022. If our nations borrointerest rates on governmebondsincrease by just onefor the next ten years, our n$1 trillion deeper in debt ovthrough-2022 period.
9 -302-220 -196
-258 -280
4-388
-317-302
-372-403
ost of One Percent Interest Rate In
Blue bars represent current
dit card balancesnd as a result,Our national credite higher interestngrade, economic
or some unforeseenrd tab could
antly higheruld impact ourblue bars representer the next ten yearsrent law. The greenssuming an increaseto the CBO, deficits
etween 2013 anding costsor thet notes, bills, and
-percentage pointation will be nearlyer the 2013-
-279-339
-412
-482
rease
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
11/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
CUT, CAP, AND BALANCE: THEupon the following common-sense
The budget should balance with Our proposal balances the
The budget should strengthensustainability.
Our proposal makes comincreased choices and impprograms bank account.
The budget should reduce spenmore effective and efficient. Our proposal cuts agency
Americas businesses have
The budget should terminate fe Our proposal does what A
these tough economic time The budget should prohibit ear
Our proposal prohibits ear
The budget should embrace refoit. Our proposal puts fair rule
stifles private-sector job cr
The budget should keep taxes lo Our proposal prevents tax
historic average, and make
Specifically, this proposal sets the
REDUCE SPENDING. Repeal ObamaCare to eliminate $ Set discretionary spending at $93
EE
DGET FOR FISCAL YEAR 2013
PRINCIPLES. The Republican Study Commitrinciples:
in ten years without raising any taxes.federal budget in 2017.
edicare, Medicaid, and Social Security to ensu
on-sense reforms to strengthen Medicare andoved services, and saves Social Security by strhere are no changes for seniors currently 55 ye
ing and trim down the size of the federal gove
pending below 2008 levels and gets governmethe ability to grow and create jobs.
eral programs that are unconstitutional, duplimerican families across the country have beens.
arks.marks and eliminates pork-barrel spending.
rms that make it is easier to reduce spending t
s in place to prevent out-of-control Washingtoation.
w and include pro-jobs tax reform.increases, repeals ObamaCare tax hikes, keepss the tax code simpler, flatter, and fairer.
ollowing common-sense policies.
636 billion in additional spending over ten yea1 billion in FY 2013 (the level proposed in last y
tees budget is based
e their long-term
edicaid by offeringngthening thears and older.
rnment to make it
t out of the way so
ative, or harmful.equired to do in
an it is to increase
spending that
the tax burden at its
rs.ears House-passed
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
12/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
SAVE MEDICARE. Put Medicare on the path to lon
Medicare should transition to aRepublican budget, which provipower of competition among priwould not affect individuals cur
Strengthen Medicares long-terMedicare eligibility age for thosindividuals currently age 55 an
REFORM MEDICAID. Block-grant Medicaid and remo
empower the states with maximthereby improving the quality ovulnerable Americans. Based ofunding for Medicaid and the C
levels for the next ten years. Thi4160).
SAFEGUARD SOCIAL SECURIT Strengthen Social Securitys lon
the Social Security full-retiremeretirement age of 70. This polic
ENACT PRO-GROWTH TAX REF Prevent any new tax increases othat is simpler, flatter, and fairer
EE
DGET FOR FISCAL YEAR 2013
-term solvency. The RSC believes, that over tholvent, premium-support system as proposedes Medicare enrollees a greater menu of choicvate insurance plans, and improves the qualityrently age 55 and older.
finances. This budget would slowly phase inborn in 1958 and after. This policy makes noolder.
e Washington D.C.s burdensome red tape. Tum flexibility to determine Medicaid eligibility
care and access to vital services for the neediethe model set by the successful welfare reforildrens Health Insurance Program (CHIP) wil
s proposal follows the RSCs State Health Flexi
.-term finances. This budget would slowly phat age for individuals born in 1958 and after tomakes no changes to individuals currently ag
RM.the American people. This budget proposesin line with the RSCs Jobs Through Growth A
e long term,d by the Houses, harnesses theof care. This policy
an increase in thehanges to
is budget wouldand benefits,t and mosts of 1996, federall be set at current
ility Act (H.R.
se in an increase inn eventual full-55 and older.
smarter tax codect (H.R. 3400).
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
13/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
THE LAUNCHING OFF POINT.tough choices lie ahead. While not
that our country will be on the rightplace? Figure 6 shows that our budbalance in FY 2017. This means thatpushing our interest payments to trioff our national credit card debt whSocial Security, upon which so manbrighter future for his children and
-723
-382
-177
-800
-600
-400
-200
0
200
2013 2014 2015
BillionsofDollars
Figure 6. The RSC'
SOURCE: Republican Study Committee
EE
DGET FOR FISCAL YEAR 2013
here is no doubt that the road to a balanced bueasy, the proposals contained in this budget wi
path. What can Americans expect if this budget deficits would decrease from $723 billion inwe will not be irresponsibly charging our natillion-dollar levels. Instead, our nation will bele improving federal programs such as MedicaAmericans rely. Most importantly, every Amrandchildren.
-65
28 77 6289
125
2016 2017 2018 2019 2020 2021
s Path to Balance in 5 Years
Red bars represent deficits.
Blue bars represent surpluses.
dget will mean thatll be a guarantee
t were put intoY 2013 and reachnal credit card andble to start payingre, Medicaid, anderican can expect a
118
2022
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
14/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
CHAPTER 2
he American people know wpolitical class is unwilling oracknowledge: Washington D.
spending problem is threatening ou
prosperity. A recent Pew Researchstudy found that 7 in 10 Americansreining in our nations deficits shoulpriority for Congress. This represepercent increase from 2007. For theAmericans said taming deficits is juimportant to our nations future asagainst terrorist threatsechoing fo
Chairman of the Joint Chiefs of StaffMullens famous line that the singlthreat to our national security is ourThis recognition, and mounting convoters to pull the emergency brakespending in the 2010 election. WhilHouse Republican majority has fouthe tide, we must do more.
FREEZE DISCRETIONARY SPENIn FY 2013, the RSC budget proposediscretionary spending be at the levin last years House-passed budgetminus the sequestration under the B
T
EE
DGET FOR FISCAL YEAR 2013
|SPENDINGat thenable to
C.sr nations
enterelieve thatd be a topnts a 30first time,t asefendingmer
Admiral, biggestdebt.
cern, ledn runawaythe new
ht to stem
ING.s thatl proposedesolutionudget
Until the budget is balanceassumes that total discretiofrozen at this $931 billion abudget is balanced, from F
discretionary spending is alinflation. Within the discrtotal, the RSC budget fundslevel as the House Republicfrom $554 billion in FY 201FY 2022.
In order to meet the RSC b
spending cap, it will be necprograms that are wasteful,constitutionally questionabsense reforms put forwardRSC Sunset Caucus, the RSor the RSCs Spending Rednumber of options:
ELIMINATE THE CORPOPUBLIC BROADCASTINdefinition, should not havesupported media outlets, esoften convey political newsFurthermore, the Corporati
, the RSC budgetary spending isount. After the2018-22, total
lowed to grow withtionary spendingdefense at the samean budget, growingto $699 billion in
dgets discretionary
ssary to eliminateduplicative, ore. The common-o this end by the
Repeal Task Force,ction Act include a
RATION FOR. A free society, by
government-pecially ones that soand opinion.ons mission of
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
15/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
ELIMINATE THE ECONOMICDEVELOPMENT ADMINISTRAT(EDA). The EDA is an improper fufederal government, essentially rediwealth in the name of economicdevelopment.
ELIMINATE THE LEGAL SERVICCORPORATION. This entity has ncontinued to offer services duplicatioffered by states, localities, bar assoand private organizations, but alsoin lobbying, advocacy of leftist causlitigation against the federal govern
ELIMINATE THE NATIONALENDOWMENT FOR THE ARTS.arts is an inappropriate function of tgovernment and is nowhere justifieConstitution. Support for the arts cand more properly be supported byfundsand local government funds.ELIMINATE THE NATIONAL LA
RELATIONS BOARD. The DepartJustice already oversees a wide varicriminal, and administrative issues,anti-trust, voting rights, and majoracquisitions and can surely handle cunfair labor practices. The departmdo so without the pro-big-labor biaspartisanship endemic to the NLRB.
ENTITLEMENT PROGREPEAL OBAMACARE. The RSCrepeals Obamacare and provides $0the next ten years This reduces ma
EE
DGET FOR FISCAL YEAR 2013
IONction of the
stributing
ESot merelyve of thoseiations,as engageds, andent.
unding thehe federal
in then easilyprivate
BOR
ment ofty of civil,includingergers and
laims ofent couldand
AMS
budgetfor it overdatory
MAKE MEDICAID MORACCOUNTABLE, AND AMedicaid is a voluntary fpartnership program that sservices for the most vulneincluding the poor, chronicchildren, the elderly, and pMedicaid is the largest fedewelfare program, and it accof all federal transfer paymBesides often failing to proeven access to care, it groweach year while hamperingWashington red tape.
State and federal Medicaid
$400 billion in FY 2010, andannual increases of 10 percyears. Medicaids open-endstructure encourages statesexchange for receiving betpercent of federal matchingObamacares planned enrolnew beneficiaries, spendin
budgets. Even now, stateson Medicaid than anything
Separately, the ChildrensProgram (CHIP) provides afamilies above Medicaids ilevel. In both of these progrfocusing on the specific nee
states must maneuver thromaze of one-size-fits-all rulStates may petition the fedeexemptions, yet it can takedecision.
EFFECTIVE,FORDABLE.deral-statebsidizes healthcare
able Americans,lly ill and disabled,egnant women.ral means-testedounts for 40 percentnts to states.ide quality care ormore unaffordable
states with more
spending surpassed
estimates predictnt over the next tened entitlementto spend more ineen 50 and 74funds. With
lment of millions ofwill bankrupt state
re spending moreelse.
ealth Insuranceid to children income-eligibility
ams, instead ofds of their citizens,
gh a bureaucratics and mandates.
ral government forears to get a
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
16/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
H.R. 4160, the State Health Flexibilitlegislation would create a Medicaidblock grant that answers governorsmore independence to use federal fway that works for their state. Freespending at the FY 2012 level savesover ten years compared to the projincreases under current law.
This legislation would also encourabetter control waste, fraud, and abuproviding state policymakers certaiamount of federal assistance they caupon. Continuing these welfare prowithout such reforms is immoral anstates most vulnerable citizens wit
promises.
STRENGTHEN MEDICARE. Theadopts the Republican House budgsave Medicare from bankruptcy anchanges to Medicare for those curreyears and older. However, the RSCrecognizes that the U.S. is facing un
demographic challenges. Medicarecovers more than 47 million seniors,baby boomers reach retirement ageClearly, we live in an aging nation,roughly 40 million Baby Boomers wthe demands on the Medicare progrUnfortunately, Medicares financial
will be unable to meet the additionaplaced on the system. For FY 2012,revenues will account for more thanof all Medicare expenditures, and thwill spend $25.7 billion more than itAccording to the Congressional Bu
EE
DGET FOR FISCAL YEAR 2013
y Act. Thisand CHIPcalls fornding in aing2 trillioncted
e states toe, whilety of the
n relygramsd leavesempty
SC budgetts plan tomakes notly 55
alsorecedented
urrentlyand 10,000very day.nd the
ill doubleam by 2023.
resources
l demandseneral50 percente trust fundtakes in.get Office,
daunting challenge. Medicwe do not improve the prothan later. Unless we take cto strengthen Medicares fiimprove the programs quaMedicare will not be in a pcurrent, let alone future, beTo address these challengesour budget proposes graduMedicare into a health insusimilar both to the system tCongress and their staffs ecurrent Medicare Part D prwhich allow seniors to choprovided on a regulated ex
changes would not affect acurrently 55 years of age or
By introducing the powerfchoice and competition inplans and providers will bedeliver value for taxpayer adollars. The similar approa
Employee Health Benefitsthe Medicare Part D progrademonstrated success in coof healthcare costs while insatisfaction and quality of cBeginning in 2023, enrolleecreated private insurance
premium subsidies to heltheir health insurance policdirect this premium supporplan of their choice offeredexchange. This includes pras a traditional fee for servi
re will go broke ifram sooner rather
ommon-sense stepsancial footing and
lity of care,sition to helpeficiaries.
, beginning in 2023,ally transformingance programat Members of
joy, and to thegram, both ofse among planshange. These
y individualolder.
l forces of consumeredicare, health careincentivized tond beneficiaryhes used by Federal
rogram (FEHB) andm havetrolling the growthreasing patient
are.
in the newlyarket would receive
p offset the cost ofes. Seniors cant payment to theon a regulatedvate plans as welle option. To
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
17/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
Under the RSCs proposal, wealthiewould be required to pay slightly mannual premiums than those with ffinancial resources, and conversely,seniors would receive higher healthsubsidies. Even today, in the curreMedicare program, wealthier seniorhigher premiums in the Medicare Pservice program. This reasonable prwould help put the Medicare progrwhole on more sound financial footiExperts on both sides of the politicathat providing Medicare enrollees amenu of choices, harnessing the pocompetition among private insuran
and improving the quality of care wsubstantially improve Medicares lofiscal outlook.
ADJUST THE MEDICARE ELIGIAGE TO REFLECT LIFE EXPECTSince Medicares creation in 1965, inadvances in science and medical tec
have increased average life expectaresult, the average length of time inare covered by the program has incrwell. According to the U.S. CentersControl and Prevention, the averagexpectancy in the U.S. was 78.7 year1965, it was 70.2 years. We have evebelieve this trend will continue.
Not only are Americans living longare also living better. To address thedemands on Medicare, this budgetraising the age of Medicare eligibilitmonths every year beginning with t
EE
DGET FOR FISCAL YEAR 2013
seniorsore inwerpoorerinsurancet
s payrt B fee-for-
oposalm as ang.
aisle agreegreaterer ofe plans,
ouldng-term
ILITYNCY.dependentnology
cy. As aividualseased asfor Diseaselife
s in 2010. Inry reason to
r, but theyincreasedroposes
y by twoose born
the rising costs of health caGovernment Accountabilitthat each year, Medicare mbillion in improper paymefraudulent or erroneous ovhealthcare providers. MalcHarvard University, a top scare fraud, argues that estiauditors do not accuratelyimproper payments. Sparroimproper payments accounpercent of federal health sp$120 billion.
A separate analysis from thestimates that cutting the
payment rate by 50 percentbillion in savings for next yWhile this budget does notsavings from reductions infraud, and abuse, the RSCfraud, and abuse must be aSTRENGTHEN SOCIAL S
RSC budget makes no chanSecurity for those currentlyThis budget would slowlyin the Social Security full-reindividuals born in 1958 an
Social Security is the nationprogram and an essential p
millions of Americans. In 2time in the programs histobegan operating at a cash dmore on benefits than it coltaxes. Over time, this growdrain the Social Security tr
e. The independentOffice estimateskes about $17ts, defined asrpayments to
om Sparrow ofpecialist in health-ates by federaleasure all types of
w believest for as much as 20nding, or nearly
e Cato Instituteedicare error-
would result in $29ar alone.assume explicit
edicare waste,elieves waste,dressed.
ECURITY. The
ges to Social55 years and older.hasein an increase
tirement age ford after.
s largest singlert of retirement for
010, for the firsty, Social Securityficit and spendingects in payrolling cash deficit willst fund, and by
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
18/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
reforms are delayed, the deficit gromanageable. Fortunately, there is aThe RSC proposal would begin phareforms that protect seniors and preSecurity for future generations. Thiwould not affect those currently 55and older.
Specifically, we propose slowly incrretirement age to 70 years. This woaccomplished by increasing the full-age in two-month-per-year incremeworkers currently under 55 years olSpecifically, this proposal would infull-retirement age to 66 years and 2starting with those born in 1958. Th
retirement age would increase in twincrements per year, reaching 67 forin 1963 or later. For those born in 1the full-retirement age would remaiyears old.
This adjustment in the retirement arealign the Social Security normal re
age to account for dramatic increaseexpectancy since the programs creanoted by the Social Security Adminisince the program first began payinSocial Security benefits in 1940, theexpectancy for men reaching age 65increased nearly four years to age 8women reaching age 65, the averag
expectancy has increased nearly six84.
This common-sense, incremental approtects individuals near retirementchanges for younger workers comm
EE
DGET FOR FISCAL YEAR 2013
s lessbetter path.ing in
serve Socialproposalears old
asing full-ld be
retirementts for
d.rease themonths
en, the full-
o-monththose born78 or later,
n at 70
e wouldtirement
s in lifetion. Asstration,
monthlyverage lifehas. Forlife
years to age
proachand makes
ensurate
OTHER SAVINGBalancing our budget is notCongress does not addressspending. Once Congress cmandatory programs autotaxpayer dollars each year.almost two-thirds of our na
budget.
While Social Security, Mediare among the most well-kprograms, the federal budgother mandatory programstaxpayer dollars for other pFor example, other mandat
includes providing benefitsrecipients, federal employestudents, to name a few. Inprograms spend almost 20nations taxpayer dollars.
Unfortunately, these progrregular oversight through
spending process. As a resperforming programs can cmoney indefinitely. The GAccountability Office (GAannual reviews in 2011 andduplicative or overlappingprograms. Indeed, Congreone significant program in
While these reports coveregovernment, they illustratechallenge confronting Conresponsibility that your taxused wisely. The savings obelow constitute a necessar
OPTIONSpossible if
mandatoryreates them,atically spend
They account fortions $3.6 trillion
care, and Medicaidown mandatoryt contains many
that redistributeurposes.ry spending
for welfares, farmers, andfact, theseercent of our
ms do not receiveongress annual
lt, poorlyontinue wastingvernment) released two2012 that list asmore than 1,500s has not eliminated
ore than a decade!
the entire federalthe scope of theress to fulfill itsayer dollars betions outlinedstep towards
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
19/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
INCOME SECURITYBUDGET FOR MEANS-TESTEDPROGRAMS. In 1996, a Republicapassed, and Bill Clinton signed, theResponsibility and Work OpportuniReconciliation Act. This law turnedFamilies with Dependent Children (
program into a reformed Temporarfor Needy Families (TANF) prograHowever, 16 years later, there are stapproximately 70 means-tested welfspending programs. Since Presiden
Johnson declared a War on PovertAmericans have spent $16 trillion otested welfare. All levels of govern
spend another $10 trillion over thebased on recent projections.
A means-tested welfare program prbenefits to individuals based on incin contrast to Social Security, Medicother such entitlement programs thbenefits linked to contributions ma
individual. In order to confine beneintended beneficiaries, means-testephase out as income increases. Theouts, along with the tax code, resultextremely high implicit marginal tamany individuals. These rates can epercent. In other words, some indivmade financially worse off by gettin
government assistance and earningmoney than by staying on governmassistance. The RSC proposes cappispending for these benefits, limitingof means-tested government benefitwill cause the return from work to i
EE
DGET FOR FISCAL YEAR 2013
ELFARECongress
Personaltythe Aid toAFDC)
Assistance.
illaret Lyndon in 1964,means-ent will
ext decade
videsme. This isre, andt providee by the
fits toprograms
e phaseinrates for
xceed 100iduals areg off
morent
ng totalthe growth
s, whichcrease
130 percent implicit marginSpend Til the End, authored
Kotlikoff and Scott Burns, apeople are better off quittinliving off the government tand earning a low-wage. Abook, a married couple, eacwill have more spending por her job.
The RSCs Welfare Reform1167, would limit overall femeans-tested welfare progr2007 plus inflation growth.begin when the unemploy
6.5 percent. This is an overit does not require cuts to aInstead, choices would bebudget process. ConsistentRSC budget would cap matested welfare programs atinflation. This saves $260 b
FEDERAL RETIREQUALIZE CONTRIBUTIEMPLOYEES PENSIONCBO report found that, oncivilian employees receivebenefits than the average pemployee with similar char
this excessive benefit structbenefit system. Federal em1984 are entitled to a hybriincludes a 401(k)-style plangovernment matches up todefined benefit payment
al tax rate on her.
by Laurence
rgues that someg their jobs andan being self-reliant
ccording to theh earning $17,500,wer if one quits his
ct of 2011, H.R.deral spending onams to the level ofThis limit wouldent rate falls below
ll cap, which meansy specific program.ade through thewith this policy, thedatory means-
the 2007 level plusllion over ten years.
MENTONS TO FEDERALLANS. A recentverage, federal8 percent more inivate-sectoracteristics. Part of
re is the retirementloyees hired sincepension, which
that theive percent and a
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
20/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
number of years they worked. For t
federal worker who earns $80,000 aafter 30 years, this works out to $26,
Considering that federal workers coonly 0.8 percent of their pay to the FEmployees Retirement System, thisfor a shortfall. Taxpayers now chip ipercent of employees' salaries to kesystem solvent. The Middle Class Tand Job Creation Act of 2012 requirfederal employees to contribute motheir retirement annuity. However,were made for current federal emplRSC budget would require all federemployees to pay more towards the
retirement. This saves $110 billionyears.
ADOPT ACCURATE INFLATIONMEASUREMENT. Federal retireesreceive inflation protection for theirpensions based on the CPI-W (the cprice index for urban wage earners
workers) instead of the CPI-U (the cprice index for urban consumers). Taccording to most analysts, overstatactual level of inflation in the econohigher cost to taxpayers. The RSC bwould more accurately measure inflfederal retirees by basing it on the CU, resulting in a savings of $26 billi
years.
REFORM THE PENSION BENEFIGUARANTY CORPORATION. TBenefit Guarantee Corporation (PBsupporting federal agency created t
EE
DGET FOR FISCAL YEAR 2013
e average
d retires400 a year.
ntributeederals a recipen 11.7p thex Reliefs newe towardsno changesyees. Thelr
ver ten
currentlyfederalnsumernd clerical
onsumere CPI-W,s they, at a
udgetation forhained CPI-n over ten
e PensionC) is a self-insure
insuring comparable risk b
private insurers, the PBGClevels to account adequatel
Congress alone has the autpremiums and has failed apremium levels. The inabiliproperly manage pensionpart, to the chronic and sevthe agency. At the end of Festimated liabilities exceedbillion. This budget recognreform the PBGC to ensuretaxpayer-funded bailout doSavings could potentially byears.
ADOPT A DEFINED COPLAN AND SLOW THEFEDERAL CONTRIBUTIFEDERAL EMPLOYEES HPROGRAM. The FederalBenefits Program (FEHB) pinsurance coverage to appr
million people, including feMembers of Congress, andThis is a consumer-drivencompeting private health plgovernment can pay up topremiums, and participantpercent of the premium pa
This level of premium suppwhat private sector compaprovide. This budget woulsupport for the FEHB progcover the first $5,000 of an ior the first $11,000 of a fami
cause, unlike
s unable to adjustfor risk.
ority to set pensionequately to adjustty of Congress toremiums has led, inre underfunding of2010, the PBGCs
d its assets by $23izes the need tothat a futurees not occur.
$10 billion over ten
TRIBUTIONROWTH OFNS FOR THEEALTH BENEFITSmployees Healthovides healthximately eight
deral workers,their dependents.rogram ofans. The federal5 percent of thepay, on average, 30ment.
ort is comparable toies currentlyoffer a premium
am that wouldndividual premiumly premium
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
21/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
AGRICULTURE SUBSIThe federal government distributes$10 billion and $30 billion in cash pfarmers and farmland owners eachof this money flows to producers ofwheat, cotton, corn, soybeans, and rbelieve agriculture cannot function
government subsidies, but fruit, velivestock, and poultry operations, wconstitute nearly two-thirds of the feconomy, receive relatively little assCongress directs most agriculture dlarge commercial farmers with averincomes of approximately $200,000.Government-wide spending reform
necessary to balance the budget, anfunded support for agriculture progshould not be exempt.
SUPPORT MARKET-BASED PROBY ELIMINATING THE DIRECT(DP) PROGRAM. The DP programcash subsidies, capped at $40,000 an
commodity producers. The paymebased on a historical measure of a fproduction acreage, and they do noon actual production or commodityDirect payments were originally est1996 as a transitional program. Hosubsidies have not been reduced ovThe Washington Post estimated that
2000 and 2006, the federal governm$1.3 billion in direct payments to pedo not even farm. Recently, the IowBureau proposed eliminating the DLike the Presidents FY 2013 budgetbudget would eliminate the Direct
EE
DGET FOR FISCAL YEAR 2013
DIESbetweenyments toear. Most
five crops:ice. Some
ithout
etable,hichrmistance.llars toge annual
s are
taxpayer-rams
GRAMSAYMENTprovides
nually, to
ts arermsvary based
prices.blished inever, ther time.etween
nt madeople whoa Farmprogram.the RSCayment
PROHIBIT NEW ENROL
CONSERVATION STEWPROGRAM. The ConservProgram (CSP) provides anproducers for five years inundertaking various land iHowever, payments undermade to producers who haundertaken conservation m
Beginning in FY 2013, newprohibited from entering inThis policy would result inbillion in savings over ten ystated that the criteria useimprovements in existing cpractices are not readily apabsence of objective measuin higher payments than neproposed option is based oCommission on Fiscal RespReforms recommendationprogram.
REDUCE THE PREMIUMCROP INSURANCE PROuse the Federal Crop Insurprotect their crops from perpolicies that are sold and sevendors. The federal goverabout 60 percent of the preprogram. Beginning in FY
governments subsidy woupercent of the crop insuranwould result in a savings often years. Reductions of thsubsidy rate are unlikely tothe level of program partici
MENTS IN THE
RDSHIPtion Stewardshipnual payments toxchange forprovements.
the program can bee already
easures.
nrollees would beto the program.approximately $10.5ears. The CBO
to determinenservationarent, and the
ements could resultcessary. The RSCs
the Nationalonsibility andto put limits on this
SUBSIDY IN THERAM. Farmersnce Program toils by purchasingrviced by privatenment subsidizes
iums paid for this013, the federal
d be reduced to 50e premium. This$12.8 billion overs magnitude in thesubstantially affectation.
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
22/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
years. The private sector should be
for promoting its own products as itthe profits from the sales of these pr
ELIMINATE THE MARKET ACCPROGRAM (MAP). The MAP is inpromote overseas marketing of U.S.agricultural products. MAP funds cpromotions, market research, tradeadvertising campaigns, and other pdesigned to subsidize the sale of braproducts in foreign markets by privcooperatives, trade associations, anbusinesses. Among other egregiousthe MAP program has provided funUSA Poultry and Egg Export Councincludes such profitable companiesButterball, Tyson, Wampler, and Pethe U.S. Grains Council (which inclMonsanto).
Taxpayers should not be forced to ptab for this kind of corporate welfarNational Commission on Fiscal Res
and Reform targeted this program aneed of change. This program woulterminated in FY 2013, resulting in $savings over ten years. According tsome analysts believe MAP does nadditional funding because the exteit has developed markets or replaceexpenditures with public funds is n
ELIMINATE WOOL AND MOHASUBSIDIES. The federal governmeenacted price support for wool and1947, and the National Wool Act ofestablished direct payments for wo
EE
DGET FOR FISCAL YEAR 2013
responsible
receivesoducts.
SStended to
nsumershows,ogramsnd-namete
funding,ding to theil (whichasdue) anddes
ick up the. Theonsibility
s one ind be2 billion ino the CBO,ot warrant
t to whichprivate
t known.
IRnt firstmohair in954l and
taxpayers about $46 million
This budget would return cdemand, and price of woolfree market.
HOUSING AND
PRIVATIZE FANNIE MA
MAC. More than nine outissued today are purchasedFreddie Mac and guaranteetaxpayer. This guarantee isnearly $170 billion tab the talready been charged to baiIn October 2011, the maximmortgages the Government
(GSEs) are permitted to bulowered from $729,750 to $the National Association ofSeptember average sale priwas $212,700).
This was a crucial first stepprivate capital to the housi
since gradually reducing thlimits will slowly expose a lhousing finance market tosecuritization. However, tundermined by the raisingHousing Administration (FThis merely rearranged taxthe credit risk of these mort
from the GSEs to the FHA.measurable amount of privactivity, the government mremove itself from being thparticipant.
over ten years.
ontrol over supply,and mohair to the
INANCE
AND FREDDIE
f every ten loansby Fannie Mae ord by the Americanin addition to thexpayers have
l out these entities.um size ofSponsored Entities
was automatically25,500 (according toRealtors, thee for existing homes
to attracting moreg finance market,
e conforming loanarger portion of therivate sectoris change wasof limits for Federal
A) eligible loans.ayer exposure to
gages by moving it
To have anyte mortgage marketst graduallydominant market
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
23/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
the enterprises share of the mortga
The practice of corporate subsidiestaxpayer bailouts in housing financstop. It is estimated that the U.S. tainvest $400 billion in Fannie Mae anMac before they are removed fromownership.
This budget recommends privatizinMae and Freddie Mac, winding dogovernment guarantee, and endingsubsidies. It also calls for measuresbring transparency and accountabilitwo GSEs. The savings would amoleast $43 billion over ten years. Thesignificant concern that the FHA wiltaxpayer bailout this year. Its reserrecord low, and delinquencies andits insurance book continue to mouPresidents FY 2013 budget indicateFHA is expected to be short more thmillion. Both the GSEs and FHA resignificant reform, and they shouldfundamentally restructured to bette
taxpayers going forward.
PROHIBIT FURTHER OBLIGATIFROM THE TROUBLED ASSET RPROGRAM. The Troubled Asset RProgram (TARP) was created by theEconomic Stabilization Act of 2008 tadministration to purchase trouble
While authority to make new communder the program expired in 2010,projects program expenditures willbillion annually over the next four ybudget prohibits further obligationsTARP, saving $7 billion over ten ye
EE
DGET FOR FISCAL YEAR 2013
e market.
ndneeds topayer willd Freddieovernment
g Fannien their
taxpayerthat wouldty to thesent to ate is alsol need aes are at aefaults int. Even thethat the
an $600uiree
r protect
NSELIEFeliefEmergency
o allow theassets.
itmentsthe CBOaverage $2ears. Thisfromrs.
whatsoever of the CFPB an
new bureaucracy will increconsumers through the creburdensome regulations. Itfar-reaching rules on financto restrict credit for the verto protect. The RSC budgeteliminating the CFPB, saviapproximately $5.4 billion
END TOO BIG TO FAIL.Dodd-Frank went to great lbailouts, this law only sustthe Federal Deposit Insura(FDIC) the authority to accin order to bail out the credsystemically significant fiThe CBO projects the cost fauthority at $32.3 billion, alDirector Douglas Elmendorthe cost of the program wieconomic and financial eveinherently unpredictable. Ianother large-scale financia
creditors are guaranteed gocould cost much more.
Instead of rewarding corpotaxpayer dollars, this budgalternative to the FDICs toauthority by supporting a presponsibility of large, faili
hands of the shareholdersmanagers who run them, afinance them. This would sover ten years.
HIGHER EDUCA
its actions. This
se costs totion of news authority to writeial products is likelycustomers it seeksproposesg taxpayersver ten years.
hile the authors ofngths to denounce
ins them. It givesce Corporationss taxpayer dollarstors of large,nancial institutions.r this new
though CBOf has testified thatll depend on futurets that are
n other words,l crisis where
vernment bailouts
rate failure witht calls for an-big-to-fail bailoutolicy that places theg firms in the
ho own them, thed the creditors whoave $32.3 billion
ION
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
24/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
estimated to have provided more th
billion to about 8.5 million undergrstudents in FY 2010. While the profunded primarily through annualappropriations, a smaller part of thefunded through mandatory spendiRecent laws like the stimulus bill haprovided mandatory funding for thprogram to increase the maximum,discretionary grant award. This maadd-on is a permanent funding itemamount of money provided for it eaunspecified. Higher-education analHauptman has stated, We shouldincreases in Pell Grants may lead inreduce the amount of discounts theotherwise have provided to the reciare from poor families, and move thstudents would have received to otbudget eliminates the mandatory aPell Grants, which helps curb conceincreases in Pell Grants lead to highand less opportunity for those most
This saves $104 billion over ten year
END IN-SCHOOL SUBSIDIES FOUNDERGRADUATE STUDENTS.student aid costs continue to skyrocevidence that the provision of federaid has contributed to the increasincollege. In general, when financial a
programs make more money availaschools, these policies result in higheducation costs. This has negative ifor access and affordability. In fact,study found undergraduate educatihighly profitable business for nonpr
EE
DGET FOR FISCAL YEAR 2013
an $33
duateram is
program isg.
vePell Grant
ndatory, and thech year isyst Artorry thattitutions towouldients, who
e aid theseers. Thisd-on forns thatr tuition
in need.
s.
RFederalet despitel studentcosts ofd
le torplicationsrecent
on to be aofit colleges
federal budget, the govern
federal student aid resourcthose aspiring to attend, orfour-year college. PresidenReduction Commission notsubsidies are based on famithe students enrollment inon the students ability to p
According to a recent papeBoard, the most importantenrollment decisions is howill owe at the completionis no evidence that eliminatinterest is critical to that amindividual matriculation.Act of 2011 ended in-schoolgraduate students, and theproposes a policy that woulsubsidies for undergraduatwould save $46.5 billion ov
ENERGY
APPROVE THE KEYSTOOPEN FEDERAL LANDSPRODUCTION. Gas pricedoubled since President Oband energy analysts predicAmericans than ever beforegallon this year. With increMiddle East, the United Sta
afford to ignore the policy rdependence on foreign oil.
The entire Keystone Pipelinheld up for more than threed d i t ll
ent can reduce
s without harmingalready attending, at Obamas Deficitd student loan
ly income prior tocollege, rather thanay after completion.
by The Collegeonsideration inmuch the studentf studies, and there
ing in-schoolount or tohe Budget Controlsubsidies forSC budget
d end in-schoolstudents. Thisr ten years.
E PIPELINE ANDO ENERGY
s have nearlyamas inauguration,that morewill pay $5.00 per
asing unrest in thetes can no longer
isks associated with
e has already beenyears, despite being
d P hi thi
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
25/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
Refuge (ANWR), Outer Continental
(OCS), Gulf of Mexico, and Rockyrepresent several areas in the Unitehave resources that would help redreliance on the Middle East, lower gcreate jobs, and boost our national sincreasing domestic production.
This budget calls for a policy that grthe Keystone Pipeline and opens feto oil and natural gas production, gtaxpayers at least $4.3 billion in auctproceeds over ten years.
TRANSFER THE TENNESSEE VAAUTHORITYS (TVA) ELECTRICFUNCTIONS. The TVA currentlyfederal corporation operating as onlargest electric utilities in the countrcompetition with private electric prContinued operation of TVAs electfunctions will require substantial cainvestments in the future. The costsold by TVA includes federal subsi
operate as a hidden tax on all citizeencourage over-utilization contraryconservation policies. This budgetTVAs electric utility functions andassets and liabilities to a non-federaoperator. TVA would retain its hydassets and liabilities because they sefunctions, such as flood control and
This would result in a savings of $3.over ten years.
REPEAL THE WESTERN AREA PADMINISTRATION (WAPA) BOAUTHORITY. The $3.25 billion bo
EE
DGET FOR FISCAL YEAR 2013
Shelf
ountainsStates thatce our
as prices,curity by
een-lightseral landsneratingion
LLEYUTILITYxists as aof thein
viders.ic utilityitalf electricityies, which
s andtoould sellssociatedowner and
ropowerrve otherrecreation.
1 billion
WERROWINGrowing
without the opportunity fo
concern, the authority incluprovision that would requitaxpayers to pay outstandiprojects that private develoThis budget repeals WAPAauthority, saving $2.9 billio
ELIMINATE THE PRESI
ELECTION CAMPAIGNPresidential Election Campmatching funds to candidatpresidential primaries, funconventions, and funds forcandidates who qualify. Inare allowed to designate $3of their federal income tax tthe fund provides taxpayerpolitical candidates. The prin 1971 to reduce the influecampaigns and to reduce tcandidates to raise money.program argue it has failedThis budget eliminates the
Campaign Fund, saving taxover ten years.
MISCELLANEOUELIMINATE TRADE ADJASSISTANCE PROGRAprograms provide addition
benefits and training assistlose their jobs as a result ofThese programs, which sindisplaced workers for addicompared to other displaceeither created or greatly ex
debate. Of most
des a bailoute Americang balances oners fail to repay.
s borrowingn over ten years.
ENTIAL
UND. Theign Fund provides
es during thes for political
third-partyividual taxpayersor $6 for a couple,
o the fund. In short,subsidies togram was createdce of money in
e time required ofritics of the
to meet these goals.residential Election
payers $371 million
S
STMENTS (TAA). TAAl unemployment
nce to workers whoforeign competition.le out trade-ional benefits
workers, wereanded by the 2009
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
26/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
loses his job to a foreign competitor
receive the same treatment as the Blemployee who lost his job to Netflixlittle data that shows that TAA propositively impact the earnings of paIn fact, a Government Accountabilitreport concluded that TAA beneficimore likely to earn less in their nextBeginning in FY 2013, this budget w
eliminate TAA programs, saving tabillion over ten years.
SELL FIVE PERCENT OF FEDERAND ASSETS. The federal govern$2.8 trillion in federal land, mineralbuildings and equipment, and inveIn a 1997 report submitted to CongrPresident Bill Clintons DepartmentInterior, the Department identifiedapproximately 3.3 million acres of fas suitable for disposal. Unfortunat14 years later, these lands remain incontrol. Federal land agencies arevaluable resources by managing lan
Democratic administration determicompelling federal need. It is imthe federal government to prudentlassets deserving of federal protectioHowever, it is also important for thgovernment to eliminate surplus ascontrol. This budget calls for the salpercent of the federal assets currentl
the federal government, with total tsavings of at least $140 billion.
DIRECT COMMITTEES TO ELIMWASTE, FRAUD, AND ABUSE. Tbudget requires each congressional
EE
DGET FOR FISCAL YEAR 2013
should
ockbuster. There isramsrticipants.
Officeries are
job.ould
payers $7.4
L LANDSent owns
rights,tory.ss byof the
deral landly, nearlyfederalastingds that a
ed held noortant formanage its
n.federalets from itse of fivey held by
n-year
INATEe RSC
committee
savings every single year.
save taxpayers $270 billion
ELIMINATE SPENDINGUNIVERSAL SERVICE Fbudget zeroes out spendinService Fund. This prograto the telecommunicationsinternet services. More rec
has also been used to provion an income-eligibility baswould eliminate spending fsaving $102 billion over ten
his proposal would
over ten years.
OR THEND. The RSCfor the Universalsubsidizes access
etwork andntly, the program
e free cell phonesis. The RSC budgetor this program,years.
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
27/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
CHAPTER 3
he RSC believes that the numissue facing this nation is jobthat end, the RSC has advanc
comprehensive proposalthe JobsGrowth Actto jumpstart job creati
robust jobs proposal is the exact opPresident Obamas so-called jobs plnothing more than the same failed spolicies of the past. Rather than wasmore of the American taxpayers manother round of stimulus spendinwould jumpstart our economy withspending a dime of taxpayer dollars
The Jobs Through Growth Act has tcomponents: (1) simplifying the taxincreasing energy production, and (government red tape. These policietogether, would do much more to heconomic recovery than Presidentplan to take even more money out o
the pockets of American taxpayers tfailed stimulus projects.
SIMPLIFY THE TAX CIn his 1981 Inaugural Address, Ron
T
EE
DGET FOR FISCAL YEAR 2013
|JOBS THROUGH GROer onereation. Tod ahroughn. This
osite ofn, which is
timulusting evenney on, our planout.
reecode, (2)) cutting
s, takenlp spurbamasf
o spend on
DEld Reagan
The Presidents FY 2013 buspend $50.8 trillion and taxyears. The federal governproblem, not a lack of reveAmerican people cannot af
consent to, the kind of tax ibe necessary to pay for theproposed in the Presidents
The RSC will balance the bspending to meet revenue,of continually hiking taxesWashingtons voracious sp
That is why the RSC budgerevenue baseline as the Hobudget, which prevents taxunder current law. The RSrevenue-neutral tax reformThrough Growth Act (H.R.broken tax code, which holgrowth and prevents much
Under this plan, people cancurrent income tax code orto a system with just two radeductions for families, an
THget proposes to
$42.7 trillion over 11ent has a spendingue problem. Theord, and will not
creases that wouldpending increasesbudget.
dget by loweringnsteado satiatending appetite.
uses the samese Republicanincreases scheduledC budget providesbased on the Jobs3400) to fix ours back dynamicneeded job creation.
stay with thescrap it and switchtes, generousno marriage
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
28/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
Details of the RSCs pro-growth, pr
reform plan are outlined below:
ENACT TAXPAYER CHOICE ACon the RSCs Taxpayer Choice Act o3818 in the 110th Congress), the legigives taxpayers the choice of stayincurrent tax code or switching to a siflatter, and fairer system. The new
system would have:
just two rates15 percent (first $taxable income for single filers,for joint filers) and 25 percent (tincome above these amounts);
a standard deduction of $12,500filers and $25,000 for joint filers;
an additional deduction of $12,5dependent; and
no other individual deductionsexclusions.
By providing dependent deductions(compared to $3,700 in current law),
eliminating the marriage penalty, thcode is more pro-family than currenRegardless of whether a taxpayer onew system, the AMT is eliminatedtax rate on investment income is setpercent for all taxpayers.
CUT THE CORPORATE RATE T
PERCENT AND MOVE TO ATERRITORIAL- BASED SYSTEM.budget calls for reducing Americascorporate tax rate from 35 percent tThis budget directs the House WaysCommittee to identify tax deductio
EE
DGET FOR FISCAL YEAR 2013
-family tax
. Modeledf 2007 (H.R.slation
with theple,
ptional tax
50,000100,000xable
for single
00 for each
r credits or
of $12,500and by
is new taxt law.ts into theand the topat 15
25
Thistop25 percent.and Meanss and
ENCOURAGE REPATRIA
encourage businesses to bri$1.2 trillion of capital straninto the U.S. economy, the lthe tax on foreign-earned pU.S. corporations to 5.25 peREPEAL THE DEATH TAfor the elimination of the d
imposes heavy compliancethe survival of small businefarms.
INCREASE ENERPRODUCTIONThe RSC budget recognizes
amounts of attainable eneroff-limits because of interfegovernment. The RSC budunnecessary delays in theContinental Shelf (OCS) peopens up Arctic National(ANWR), the OCS, and watGulf of Mexico for energy e
development.
The budget also green lightPipeline, allowing for instareducing our dependency oin the Middle East. The plaadministrations Wild Lanrestricts hundreds of thousenergy development, repeaEnvironmental Protectiongreenhouse gas regulation,EPA from imposing regulatclimate change.
TION. To
ng the estimateded overseas back
egislation lowersofits repatriated by
rcent for one year.
. This budget callsath tax, which
costs and threatenssses and family
GY
the massive
y resources that areence by the federalet removesulf of Mexico Outermitting process andildlife Refugeers in the Easternxploration and
s the Keystone XLt job creation and
n unstable regimesn repeals theds Policy thatnds of acres froms thegency (EPA)
and prevents theions in the name of
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
29/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
Given Secretary Chus comments a
administrations lack of a workablecomprehensive energy policy, its nthat gas prices have been increasingpast few years. The administrationthat our nation should be poweredenergy and at every turn has takenblock domestic production of oil, conatural gas.
While renewable sources of energyimportant part of the nations totalrenewable energy by itself cannot pcountry now or even in the near fut120 million barrels of decreased eneproduction in the Gulf of Mexico beand 2012, 830,000 barrels of blockedcapacity through the Keystone XL P11 percent decrease in oil productiolands in 2011, and failures by the OAdministration to approve drillingno wonder that gas prices are skyroEXTEND OCS LEASES. This planone-year extension on OCS leases thdirectly impacted and delayed by thadministrations failure to move foroffshore drilling permitting process.
CUT RED TAPEAmericas entrepreneurial spirit hasdriven the economic growth of our
resulted in unrivaled prosperity. Athe unemployment rate remains higWashington seeks to spur job creatibusinesses throughout the United Sconstrained by the growth of federaregulations
EE
DGET FOR FISCAL YEAR 2013
d this
andsurprise
over theelievesn greensteps to
al, and
re annergy mix,wer there. With
rgytween 2009dailyipeline, an
on federalamalans, it isketing.
provides aat weree
ard in the
alwaysation and
d yet, ash andn, smallates are
For small businesses, this a
over $10,000 per employee.regulation is rising. From tthe Obama Administrationregulators have imposed $3costs on the American peopcomparable period on recorBurdensome and onerous g
regulations stand in the waof the American economy.of regulations, in both dollprevents the creation of neexpansion of existing ones.concerning, unnecessary rein the closing of businessesstruggling in the midst of oeconomic times.
The RSC believes that Ameafford a regulatory systembusinesses, and the lifes wat risk. Only by promotingfreedom that allows smalland create jobs without govinterference will our econolife reach new heights.
The RSC budget proposes ssense solutions that will unpotential of job creators anentrepreneurial spirit.
Call a timeout on all necreate significant costs funemployment falls to
Expand small businesscompanies with up to 2
Require congressional a
ounts to a cost of
And the cost ofe beginning of
to mid 2011,8 billion in newle, more than anyd.
overnment
of the resurgenceThe staggering costrs and hours, often
businesses and thePerhaps mostulation can result
that are alreadyr uncertain
ica can no longerhat puts jobs, familyrk of entrepreneursan environment ofusinesses to thriveernmenty and quality of
everal common-eash the vastthe American
regulations thator job creators until.7 percent or less.xemptions to0 employees.
pproval for
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
30/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
Require federal agencies to giveconsideration to the impact of pregulations on small businessespublishing a regulatory flexibili
Allow small businesses to opt oregulations imposed since the e(coinciding with the start of thebusinesses follow certain publicconsumer notification requirem
EE
DGET FOR FISCAL YEAR 2013
greater
oposedbyy analysis.t of federald of 2007ecession) ifandnts.
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
31/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
CHAPTER 4n February of 2012, the House ofRepresentatives took the first stefixing our broken budget proces
passed three key pieces of legislatiothe budget process. These bills will
increased transparency and accountthe budget process. The first of theslegislationthe Budget and AccounTransparency Actwould bring govsponsored enterprises (GSEs) FanniFreddie Mac on-budget and requireaccounting for federal credit prograsecond billthe Baseline Reform Acundo the requirement that the CBOautomatically increase discretionaryat the rate of inflation in its budgetThe third billthe Pro-Growth BudActwould require that, for major lthe CBO prepare an analysis of thelegislation would have on the broadeconomy.
While these three bills represent proRSC believes that additional reformnecessary to make reducing spendithan increasing it. Our proposal pu
I
EE
DGET FOR FISCAL YEAR 2013
|BUDGET PROCESS RE
ps towardandto reform
bring
ability toe pieces ofingernment-Mae and
fair values. The
twould
spendingrojections.etinggislation,ffect thater U.S.
gress, theare
g easiers fair rules
congressional budget procecommitment to a balancedadoption of this budget.
LIMIT USE OF ADVANC
APPROPRIATIONS. Theappropriations is a budgetavoid spending controls anhands of future congressesspending authority to a proyears beyond the year forappropriations act is passewould cap advance appropbillion in FY 2013.
DEFINE EMERGENCY SCongress has clearly abusedesignate spending as emin order to exceed spendinprevious budget resolutionCBO, net supplemental spebillion in the 1980s and $86In contrast, from 2000 to 20appropriations often exceesingle year, and the cumulayears was over $907 billion.
ORMss and to enforce theudget made by the
use of advanceimmick designed totie the budgetary
y appropriatinggram one or morehich an. The RSC budget
riations at $24
ENDING.its ability to
rgency spendinglimits set by. According to theding totaled $99
billion in the 1990s.9, supplementaled $100 billion in ative total over these
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
32/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
This budget would adopt in the Ho
clear, six-part definition for an emerprovide for a point of order againstconsideration of a bill including espending if a statement from the Cthe House Budget Committee werepreviously printed in the Congressiexplicitly explaining why suchspending meets each of the six crite
policy was included in H.R. 3964 (frCongress), the Spending, Deficit, anControl Act.
CONTINUE EARMARK BAN. UnRepublicans recent adoption of anmoratorium, the number of earmarin appropriations and authorization
soared over the past decade. The rediverted taxpayer resources to satisfinterests, greased the wheels of Wasspending ride, and set a poor examresponsibility. This budget would aHouse rules to make it out of orderHouse to consider any legislation wincludes an earmark. It would alsoRules Committee from reporting a rthat would waive such rule.
IMPLEMENT CUT RESOLUTIONbudget would require the Majoritybring a quarterly rescissions bill befHouse under an open rule. Any res
approved by the House would be ddeficit reduction via a reduction to tallocation for that fiscal year. This ion the Cut Resolution (H.Res. 323 inCongress).
EE
DGET FOR FISCAL YEAR 2013
se rules a
gency and
ergencyairman of
notnal Record
ia. This
om the 111thd Debt
til Housearmarks includedbills had
quests ofteny specialhingtonsle of fiscalend the
n theichrevent the
ule or order
. The RSCeader tore the
issions
dicated tohe 302(a)modeledthe last
amendments to an appropr
propose and prevents otherusing those savings to increanother account in the bill.improvement on the previospending cuts protected inAccounts are not applied aAppropriations Committeeallocation, and this allows t
redirected by the Committesubsequent appropriationswould change House rulesfunds cut from an appropriallocated to a Spending Rewould also be cut from theCommittees 302(a) allocaticuts from being spent laterappropriations process.
IMPROVE ENFORCEMERULES. The Budget Actsprovisions currently requirvote to waive, and this alloparty in Congress to ignorewill. This budget adopts atwo-thirds majority to waivauthorized by the Budgetof order to consider a rule orules waiving such points o
REQUIRE ACCOUNTABISPENDING AUTHORIZAthe House has allowed billsmillions of dollars in spendfive-year, and longer periovote. This budget adopts acall vote for any legislationspending authority of the f
ations bill they
Members fromase funding forWhile anus situation,pending Reductionainst thes overall 302(a)ose savings to be
e to spending inbills. This budgetto establish that anyations bill anduction Account
ppropriationsn, protecting then the
T OF BUDGETnforcementonly a majoritys the majority
its provisions atequirement for ae points of orderct and makes it outr suspension of thef order.
LITY FORTIONS. In the past,authorizingng over one-year,s to pass by voicerule requiring a rollthat increases thederal government
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
33/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
MAKE IT EASIER TO AMEND
APPROPRIATIONS BILLS. Thiswould amend the rules prohibitingamendments on appropriations billfloor so that funding for a programthe underlying text can be conditionmodified by amendment.
ESTABLISH POINT OF ORDER A
UNAUTHORIZED SPENDING. Tbudget would prohibit the Rules Cofrom reporting out a rule that waiveRule against unauthorized spendinappropriations bill. If a program isenough to receive taxpayer funding,be important enough to be reauthorregular basis.
DISCLOSE WELFARE SPENDINPRESIDENTS BUDGET. The RSCPresidents annual budget submissiinclude a figure on proposed aggrewelfare expenditures over the next twell as estimated state and local weexpenditures over this period. This
taxpayers information on how mucgovernment, and all levels of goverspending on means-tested welfare p
CONCLUSIONThere are countless voices in Ameriaround the worldthat have alread
the United States has permanently las the premier world power and theliberty. Sadly, there is plenty of evisupport this claimfrom tax rates togovernment growth to foreign polic
EE
DGET FOR FISCAL YEAR 2013
udgetuthorizingon the
ncluded ined or
GAINST
he RSCmmittees the Housein an
mportantit shouldzed on a
INdirects then toate federalen years, asfarewill give
the federalment, arerograms.
aanddecided
st its statusbeacon ofence to
y retreats.
unstoppable. Bold steps to
allow Americans to flouristherefore earn their own suto fully restore the God-givhappiness. Such bold stepsthis budget, a budget that cbalancesand restores therenewal.
advance liberty can
, to create andcess, andn right to pursueare embodied in
uts, caps, andromise of American
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
34/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
APPENDIX|CSTATEMENT,ADSUMMARY TABLE
CONSTITUTIONALA
he constitutional authority oncollect taxes, pay the debts, aUnited States as enumerated i
Additionally, Article I, Section 9, Clpurse and assigns Congress the roleof the Receipts and Expenditures o
The Congressional Budget Act of 19the budget. The budget resolution sfiscal actions taken by the legislativ
As ordained by the Constitution anentrusted with the adoption of a coThis budget resolution recognizes tgovernment to live within its meansfamilies and future generations to acreate jobs, result in ever-increasing
T
EE
DGET FOR FISCAL YEAR 2013
NSTITUTIONAL AUTHITIONAL RESOURCES, A
THORITYSTATEMENTwhich this resolution rests is the power of Cond provide for the common defense and generan Article I, Section 8, Clause 1 of the United Stuse 7 of the Constitution provides Congress wof the guardian of the public treasury by requif all public Moneybe published from time to
74 provides for the annual adoption of a concuerves as the guide created by and for Congressbranch during each congressional session.
required by law, the legislative branch is the sprehensive budget resolution for the federal g
e threats to individual liberty posed by the ina. Failing to address the debt crisis now wouldcrushing tax burden, smother the ability of sminterest rates, and set the nation on course for
RITY
ND
gress to lay andwelfare of the
tes Constitution.th the power of theing that an account
time.
rent resolution onfor all subsequent
ole authorityovernment.
ility of the federaloom American
ll businesses toconomic collapse.
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
35/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
In accordance with our constitution
preserve the American way of life ffor the consideration of the 112th C
ADDITIONALRESOUDEBT REDUCTION RESOURCESits gross domestic product (GDP),
services produced in our nation in olandmark study by economists Kenbetween debt and GDP growth fropublic debt exceeds 90 percent of G
Despite this stark reality, the Demoand jobs opportunity plan. In fact, iLeader Harry Reid (D-NV) has said
resolution. This law exchanged a $federal spending over ten years. Thdeficits, record debt, and high unem
Since January 2011, the RSC, severalseven different plans to balance ourdemonstrate that Washington doesopportunity by paying down our de
Republican Study Committe
RSC Budget for FY2012: HoU.S. Senator Rand Paul (R-K
A Platform to Revitalize A(March 2012)
Budget of the U.S. GovernmU.S. Senator Pat Toomey (R-
Restoring Balance: A BudgeEncourages Economic Gro
EE
DGET FOR FISCAL YEAR 2013
l duty, adherence to the law of the land, and t
r this and future generations, this budget resolngress.
CES
. In January 2012, the United States debt surpahich means our debt is higher than the value o
ne year. A debt level this high destroys jobs.eth S. Rogoff and Carmen M. Reinhart examin44 countries, spanning roughly 200 years. ThP, economic growth (e.g., job creation) decline
rat-led U.S. Senate has failed to produce a credt has not produced a budget in almost three yethe Budget Control Act serves as the Congressi
.1 trillion debt increase over two years for a $2.at is a plan to preserve the status quo of more sployment.
U.S. Senators, and some outside groups havebudget and promote economic opportunity. Tot lack solutions; it simply lacks the will to pr
bt.
eest Solutions (April 2011)
)erica: Budget of the U.S. Government, Fisc
ent, Fiscal Year 2012 (May 2011)
A)t Proposal for Fiscal Year 2012 that Balanceth (May 2011)
e intention to
tion is submitted
sed 100 percent ofall goods and
or example, aed the relationshipy found when grosss.
ible debt reductionrs. Senate Majorityonal budget
1 trillion cut inending, record
roduced at leastese plans
mote job
l Year 2013
the Budget and
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
36/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
FreedomWorks
The Tea Party Budget: A CoGovernment, and Save Our
U.S. House of Representative
The Path to Prosperity: A BlBUDGET CONTROL ACT PRIME
trillion in new debt to be issued oveyears, 2012-21. The spending cuts asequestration. According to the CBThe law requires the House and Sen
DISCRETIONARY SPENDING CAPS
(Billions of dollars, budget authority)
2012
BCA Discretionary Levels 1,043
Spending above these cap levels is aspending, (2) war funding, and (3)FY 2001, appropriations for these ite$145 billion). The BCA would also i
$110 billion in cuts each year, 2013-defense spending would be reduce
Unlike the discretionary spending cmandatory accounts. However, thesequestration, including Social Secupresidents request), welfare prograrailroad retirement, and GSE prefer
sequestration cuts only up to two pMedicare providers). Prescription-and qualified individual premiums
When considered within the contex
EE
DGET FOR FISCAL YEAR 2013
mprehensive Ten-Year Plan to Stop the DeCountry (November 2011)
ueprint for American Renewal(March 201
R. The Budget Control Act (BCA, P.L. 112-25)
r two years in exchange for an equivalent spene structured in the form of caps on discretiona, the BCA would reduce the deficit by $2.1 tril
ate to adhere to the following discretionary sp
2013 2014 2015 2016 2017 2018 2019 202
1,047 1,066 1,086 1,107 1,131 1,156 1,182 1,20
llowed only for specific exceptions, including (rogram spending to eliminate waste, fraud, anms have ranged from $48 billion to $385 billion
plement a sequestration totaling $1.2 trillion
021. Defense spending would be reduced byby $55 billion.
ps, the sequestration cuts are applied to total sBCA fully or partially exempts certain mandatrity, Medicaid, veterans programs, military per
s, federal highway funds, federal retiremented stock agreements. Medicare spending is el
rcent of the programs non-exempt payments (rug coverage for low-income beneficiaries, cat
are fully exempt from sequestration.
of other laws governing sequestration, the $11
t, Shrink the
)llowed for $2.1
ing cut over teny spending andlion over ten years.nding levels:
2021
1,234
) emergencyabuse. Since
(averaging aboutver nine years, or
55 billion and non-
pending, includingry programs from
sonnel (upon thend disability,gible for
primarily toastrophic assistance,
0 billion cut
REPUBLICAN STUDY COMMITTEE
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
37/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
SEQUESTRATION: ALLOCATION OF THE $
(Billions of dollars, budget authority)
Discretionary
Discretionary
Mandatory Medicare
Other non-exempt
Additional (a)
Sub Total
NOTE: (a) This is the amount of sequestration alimited to no more than 2 percent.
SOURCE: Congressional Budget Office
Specifically, the $110 billion in redu
(1) Discretionary Spending in FY 2spending cap, then OMB will reducbillion non-defense) on January 2, 2
(2) Discretionary Spending for FY
further downward by the estimated
(3) Mandatory Spending. The Offito eligible accounts in each year fro
Similar to the spending caps, the labetween years. Unless the law chan
DISCRETIONARY SPENDING FY 2012-2021
(Billions of dollars, budget authority)
2
BCA Discretionary Level 1
BCA Sequestration Cut
EE
DGET FOR FISCAL YEAR 2013
110 BILLION ANNUAL CUT
DEFENSE
2013 2014 2015 2016 2017 2018 2019 2020 20
-55 -55 -55 -55 -55 -55 -55 -55 -5
NON-DEFENSE
-43 -38 -37 -37 -36 -36 -35 -33 -3
-6 -11 -12 -13 -13 -14 -15 -16 -1
-4 -3 -4 -3 -3 -3 -3 -4 -3
-2 -2 -2 -2 -2 -2 -2 -2 -2
-55 -55 -55 -55 -55 -55 -55 -55 -5
plied to other programs because the Medicare sequestration is
tions would be implemented in three parts:
13. If Congress appropriates up to the $1,047discretionary accounts by $97 billion ($55 billi13;
014-FY 2021. The discretionary spending caps
cuts outlined in the below table; and
e of Management and Budget (OMB) will applFY 2013 through FY 2021.
does not allow the $110 billion annual spendiges, discretionary spending levels will be as fol
012 2013 2014 2015 2016 2017 2018 2019
,043 1,047 1,066 1,086 1,107 1,131 1,156 1,182
0 97 93 92 91 91 90 89
1
5
3
7
illion discretionaryon defense and $42
will be revised
the required cuts
g cut to be shiftedlows:
020 2021
,208 1,234
88 88
REPUBLICAN STUDY COMMITTEE
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
38/43
REPUBLICAN STUDY COMMITT
CUT, CAP, AND BALANCE: A B
The intent of the BCA was to excha
$2.1 trillion decrease over the long-tachieved through a Joint Committeeprograms, or both. The law also punecessary $1.2 trillion savings if thefail safe was presumably include
Joint Committee did not achieve ansome other change in law that achiewill not be on a path to reach equiv
EE
DGET FOR FISCAL YEAR 2013
ge a $2.1 trillion increase to the debt limit in th
rm. The bulk of this savings was originally plprocess that would have altered laws governis into place a fail-safe optionsequestrationt
Joint Committee process failed to pass the neeto incentivize action by the Joint Committee.savings, sequestration is now the law of the laes at least $110 billion of additional savings ea
lency with respect to the recent $2.1 trillion de
short-term for a
nned to beg taxes, spendingachieve the
ed savings. Thisowever, since the
nd. Without it, orch year, Congresst limit increase.
REPUBLICAN STUDY COMMITTEE
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
39/43
REPUBLICAN STUDY COMMITTEE
CUT, CAP, AND BALANCE: A BUDGET FOR F
RSC's
2013
Revenues 2,734
Discretionary Spending 1,183
Medicaid and CHIP 267
Medicare 503
President's Health Care Law 0
Social Security 813
Other Mandatory 457Net Interest 234
Total Outlays 3,457
DEFICIT/SURPLUS -723
ISCAL YEAR 2013
39
ut, Cap, and Balance Outlays
(Nominal Dollars in Billions)
2014 2015 2016 2017 2018 2019 2020 2
2,980 3,232 3,449 3,642 3,811 3,986 4,184 4,
1,072 1,024 1,012 997 996 1,016 1,034 1,
267 267 267 267 267 267 267
525 547 593 606 625 683 727
0 0 0 0 0 0 0
856 900 948 1,002 1,061 1,125 1,194 1,
393 384 354 351 350 362 374249 287 340 391 435 471 499
3,362 3,409 3,514 3,614 3,734 3,924 4,095 4,
-382 -177 -65 28 77 62 89
Total
21 2022 2013-2022
88 4,601 37,007
53 1,079 10,466
67 267 2,670
74 855 6,438
0 0 0
65 1,340 10,504
90 414 3,82914 528 3,948
63 4,483 37,855
25 118 -848
REPUBLICAN STUDY COMMITTEE
-
7/31/2019 Rsc Budget Cut Cap and Balance--long Doc--final
40/43
REPUBLICAN STUDY COMMITTEE
CUT, CAP, AND BALANCE: A BUDGET FOR F
RSC's Cut, Ca
2013 20
Non-defense 377 3Defense 554 5Overseas Contingency
Operations 97
Total Budget Authority 1,028 9
Total Outlays 1,183 1,0
ISCAL YEAR 2013
40
, and Balance Discretionary Spendin
(Nominal Dollars in Billions)
4 2015 2016 2017 2018 201