The Presidents Plan: $4 Trillion of Deficit Reduction Including the Last Offer to Speaker Boehner

(in $ billions)

T HE P RESIDENT H AS S IGNED I NTO L AW M ORE R EDUCTION

THAN

$2.5 T RILLION

OF

D EFICIT

Spending cuts to discretionary programs enacted over the past two years, (not counting war savings) New revenue from wealthiest in fiscal cliff deal Interest savings Subtotal, Deficit Reduction to Date

$1,400 More than $600 More than $500 More than $2,500
THAN

T HE P RESIDENT S L AST O FFER TO S PEAKER B OEHNER IS S TILL ON T ABLE : M ORE $1.5 T RILLION IN A DDITIONAL D EFICIT R EDUCTION
Spending Reductions Even split between defense and nondefense discretionary savings
Non-defense discretionary spending Defense discretionary spending Reduce payments to drug companies Reduce hospital payments such as reimbursement for patients who dont pay Encourage efficient care after a hospital stay Encourage beneficiaries to seek high value health care and ask the most fortunate to pay more Medicaid, Pay-for-Delay, IPAB, program integrity Other health savings Eliminate certain subsidies for agriculture Reform Federal retirement programs Reform postal service and TSA passenger security fees Strengthen solvency of UI trust fund Other savings including Spectrum Fees, Sales of Excess Property, & Program Integrity

$200
$100 $100

Health savings could be achieved by:

$400
$140 $30 $50 $35 $25 $120

Non-health Mandatory Savings could be achieved by:

$200
$30 $35 $40 $50 $45

Spending Savings from Superlative CPI with protections for vulnerable Subtotal, Total New Spending Reductions Revenue Limit tax deductions to 28% for the wealthiest and close other loopholes Temporary Growth Measures Immediate investments in infrastructure

$130 $930 + $200 interest $580 billion (+$100 billion from CPI change) -$50

TOTAL DEFICIT REDUCTION

Deficit Reduction to Date New Deficit Reduction Total Deficit Reduction More than $2,500 $1,800 More than $4,300