How I Solved the Debt Crisis

How I got the U.S. to an acceptable debt level at http://crfb.org/stabilizethedebt/. My selections are in bold below.


Iraq and Afghanistan

Reduce Troops to 60,000 by 2015
-$350B
Reduce Troops to 30,000 by 2013
-$740B
Maintain Current Funding Levels
$0

2001/2003 Tax Cuts
Renew All the Tax Cuts
$3,280B
Renew the Tax Cuts on Income Below $250k/200k
$2,590B
Reduce Lower Rate Cuts by Half and Let Upper-Income Cuts Expire
$2,060B
Allow All the Tax Cuts, Except for AMT Patches, to Expire
$480

Discretionary Spending Growth
Grow Regular Discretionary Spending with GDP
$1,290B
Adopt the Discretionary Spending Growth Rates in the President's Budget
$680B
Grow Regular Discretionary Spending with Inflation
$0

Defense, Diplomacy & Security
Enact Administration's Proposed Weapon System Cuts
-$30B

Foreign Aid
Cut Foreign Economic Aid in Half
-$110B
Increase Foreign Economic Aid by 50%
$110B

Veterans' Benefits
Reduce Veteran's Income Security Benefits
-$50B
Expand Veteran's Income Security Benefits
$30B

Cancel Missile Defense System
-$50B
Reduce Spending on Ship Building
-$50B
Increase Homeland Security Spending
$50B

Troop Levels
Increase Number of troops by 46,000
$70B
Reverse "Grow the Army" Initiative
-$90B

Domestic Social & Economic Spending
Cancel TARP and Rescind Unused ARRA Funds
-$350B
Enact New Jobs Bill
$210B

Food Stamps
Gradually Reduce Benefits to 2008 Levels
-$100B
Index Current (Post-Stimulus) Benefits to GDP
$140B

Freeze Average Unemployment Benefits at 2009 Levels
-$50B
Cut Temporary Assistance to Needy Families (TANF) Program
-$50B
Cut Federal Funding of K-12 Education by 25%
-$60
Eliminate the New Markets Tax Credit
-$40B
Cut School Breakfast Programs
-$30
Double Funding on Adoption and Foster Care
$70B
Increase Funding for the Education of Disadvantaged and Disabled Children
$290

Social Security
Raise the Normal Retirement Age to 68
-$110B

Slow Initial Benefit Growth
Gradually Reduce Scheduled Benefits (by 30% in 2080)
-$100B
Progressively Reduce Benefits, Protecting Low Earners
-$80B
Progressively Reduce Benefits, Protecting Low and Medium Earners
-$60B
Use An Alternate Measure of Inflation for COLAs
-$100B
Reduce Spousal Benefits from 50% to 33%
-$20B
Increase Years Used to Calculate Benefits
-$40B
Include all New State and Local Workers
-$80B
Institute a Minimum Benefit
$130B

Health Care
Modify Health Care Reform Law

Expand Coverage to an Additional 5 Million People
$130B
Reduce Insurance Subsidies by 20%
-$160B
Repeal Entire Legislation
$160B
Repeal Legislation, but Keep Medicare/Medicaid Cuts
-$260B
Increase Cost-Sharing for Medicare
-$100B
Raise Medicare Premiums to 35% of Costs
-$140B
Reduce Spending on Graduate Medical Education
-$20B
Enact Medical Malpractice Reform
-$50B
Increase the Medicare Retirement Age to 67
-$80B
Replace Traditional Medicare with Insurance Vouchers
-$120B
Modify Federal Medicaid Funding to States

Reduce Funding Removing Floor on Matches
-$130B
Increase Average Matches from 57% to 60%
$140B


Other Spending
Eliminate Certain Outdated Programs
-$40B
Reduce Federal Highway Funding
-$70B
Reduce or Eliminate Certain Transportation Programs
-$20B
Cut Federal Workforce by Five Percent
-$130B
Cancel NASA Missions to the Moon and Mars
-$40B
Reduce Farm Subsidies
-$80B
Expand Spending on Federal Research & Development
$100
Cut Earmarks in Half
-$80B
Increase Mass Transit Funding
$60B


Revenues
Increase User Fees Across the Board
-$40B
Sell Certain Government Assets
-$70B
Impose Financial Crisis Responsibility Fee
-$80B
Reform International Tax System
-$120B
Enact Carbon Tax or Cap-and-Trade
-$330B
Increase Gas Tax by 10 Cents per Gallon
-$80B
Enact Five percent VAT With Partial Rebate
-$630B
Gradually Increase Dependent Exemption by $3,500
$190B
Impose Surtax on Income above $1 million
-$190B
Gradually Increase Payroll Tax by One Percentage Point
-$130B

Raise Social Security Payroll Tax Cap
Raise Cap to Cover 90% of Earnings
-$420B
Institute Two Percent Surtax on Earnings Above Cap
-$190B
Reduce Corporate Tax Rate from 35% to 30%
$390B
Index Tax Code to Alternate Measure of Inflation
-$80B
Improve Tax Collection (Reduce Tax Gap)
-$20B

Tax Expenditures
Convert Mortgage Interest Deduction to a 20% Credit
-$190B
Limit Itemized Deductions for High-Earners
-$250B
Curtail State and Local Tax Deduction
-$470B
Eliminate Life Insurance Tax Benefits
-$220B
Eliminate Subsidies for Biofuels
-$110B
Make Research & Development Tax Credit Permanent
$80B
Extend $400/person Making Work Pay Credit
-$400B

Tax Credits for Children and Families
Cut the Earned Income Tax Credit (EITC)
-$70B
Expand the EITC and Child Tax Credit
$90B
Extend "American Opportunity" College Tax Credit
$60B

Tax Treatment of Employer Sponsored Health Insurance
Begin Excise Tax on High-Cost Plans in 2013 Instead of 2018
-$110B
Repeal Excise Tax on High-Cost Plans
$10B
Replace Employer Health Care Exclusion with a Flat Credit (In Place of Excise Tax)
-$340B