CHAIRMEN Common Ground in Debt Limit Negotiations

BILL FRENZEL
Exceeds $200 Billion
JIM NUSSLE
TIM PENNY May 20, 2011
CHARLIE STENHOLM
Rumors about the current negotiations between Vice President Biden and
PRESIDENT
MAYA MACGUINEAS
several members of Congress suggest the group may have identified $200
billion in spending cuts as part of their efforts to reduce the deficit and
DIRECTORS raise the debt ceiling. There is enough overlap between recent budget
BARRY ANDERSON
proposals that we believe significant more savings can be found.
ROY ASH
ERSKINE BOWLES
CHARLES BOWSHER “What this country really needs is a $4 trillion deficit reduction plan for
STEVE COLL
DAN CRIPPEN
the coming decade,” said Maya MacGuineas, president of the Committee
VIC FAZIO for a Responsible Federal Budget. “But given time limitations and the
WILLIS GRADISON need to responsibly raise the debt ceiling as soon as possible, lawmakers
WILLIAM GRAY, III
WILLIAM HOAGLAND
should at least be looking at substantial down payments on areas where
DOUGLAS HOLTZ-EAKIN consensus already exists.”
JIM JONES
LOU KERR
JIM KOLBE Compiling common policies from a variety of fiscal plans including the
JAMES MCINTYRE, JR. President, the House Republicans, the White House Fiscal Commission,
DAVID MINGE
and the Domenici-Rivlin Commission, CRFB has identified significant
JUNE O’NEILL
PAUL O’NEILL overlap. We believe there could be potential consensus on between one
MARNE OBERNAUER, JR and two and a half trillion dollars worth of savings.
RUDOLPH PENNER
PETER PETERSON
ROBERT REISCHAUER “In addition, given the severe fiscal threats we face, the more savings we
ALICE RIVLIN can agree on, the better. Debt targets and triggers – such as those
CHARLES ROBB
MARTIN SABO
recommended by the Peterson-Pew Commission on Budget Reform – can
ALAN K. SIMPSON help require further rounds of deficit reduction, as well as keeping any
JOHN SPRATT budget reform plan on track,” added MacGuineas.
GENE STEUERLE
DAVID STOCKMAN
JOHN TANNER
LAURA TYSON
GEORGE VOINOVICH
PAUL VOLCKER
CAROL COX WAIT
DAVID M. WALKER
JOSEPH WRIGHT, JR.

SENIOR ADVISORS
ELMER STAATS
ROBERT STRAUSS

1899 L Street NW • Suite 400 • Washington, DC 20036 • Phone: 202-986-2700 • Fax: 202-986-3696 • www.crfb.org
 Overlapping Policies Among Fiscal Plans

10-Year Savings House Domenici-

Deficit-Reducing (Billions) President’s Fiscal
Republican Rivlin
Policies Framework Commission
Low High Budget (BPC)
Discretionary Caps $580 $1,600 X X X X
Reduce Farm
$5 $35 X X X X
Subsidies
Enact Tort Reform $0 $55 X X X X
Reform PBGC $5 $10 X X X X
Eliminate In-School
Interest Subsidies on $20 $65 X X X
Student Loans
Auction Spectrum
$25 X X X
Licenses
Sell Excess Federal
$10 $15 X X X
Property
Reduce Health Fraud
$10 $35 X X X
and Overpayments
Eliminate Fossil Fuel
$20 $40 X # # X
Tax Preferences
Reduce Medicare
Payments to Drug $55 $110 X X X
Companies
Reduce State
$20 $50 X X
Medicaid Gaming
Increase Federal
Civilian Pension $65 $120 X X
Contributions
Use Chained CPI For
All Inflation-Indexed $255* X X
Programs
Increase Medicare
$25 $130 X X
Cost-Sharing

Total Savings $1,095 $2,545

Note: All numbers rounded to nearest $5 billion. This list is not exhaustive of overlapping policies.
*Switching to the chained CPI would increase revenues by $87 billion, reduce Social Security outlays by $112 billion,
and reduce other spending by $56 billion over ten years. To read more about the merits of switching to the chained
CPI, see the Moment of Truth project's latest paper.
#Policy could be included as part of comprehensive tax reform plan.

_______________________________________________________________________________________________________________

Committee for a Responsible Federal Budget │2