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This volume compiles more than 200 specific policy options for increasing federal revenues or reducing spending in a wide variety of programs. It is the 17th such compendium that the Congressional Budget Office (CBO) has prepared as part of its annual report to the House and Senate Committees on the Budget.

In addition to the introductory chapter and the four chapters that present the options, this year's report has two new features. First, instead of providing a series of individual policy options for reducing the growth of spending for Medicare and Medicaid, Chapter 6 presents several integrated packages of options for those two major federal health care programs. The discussion highlights the trade-offs and interactions that must be considered when combining detailed policies into comprehensive proposals. A second new section--Chapter 7--examines the problems of sustaining Social Security and Medicare over the longer run, beyond the normal budgetary window. It analyzes various policy options for containing spending on those programs as the population ages with the retirement of the baby-boom generation.

The report begins with an introductory chapter that provides general background information on CBO's latest medium-term deficit projections and the longer-run budgetary outlook as the result of coming demographic changes. Chapter 1 also explains how to use the options presented in this volume. The second chapter presents more than 40 revenue-generating options. The next three chapters include more than 160 options for reducing spending, organized by broad categories that have become the focus for deficit reduction efforts--defense and international discretionary spending, domestic discretionary spending, and entitlement and other mandatory spending. The report concludes with the two chapters discussed above, an appendix listing the spending options by the budget functions that would be affected, and a glossary of budget and economic terms.

The policy options included in this report come from many sources, and the Congress has considered most of them at some time in the past. In keeping with CBO's mandate to provide objective and impartial analysis, the discussion of each option presents the cases for and against it as fairly as possible. CBO does not endorse the options included, nor does exclusion of any proposal imply a recommendation for or against it.

All divisions of the Congressional Budget Office contributed to this report, which was coordinated by James L. Blum. Edward Davis prepared Chapter 1. The options presented in Chapters 2 through 5 were coordinated by Mark B. Booth, David H. Moore, R. Mark Musell, Constance Rhind, and R. William Thomas. Joseph R. Antos and Linda Bilheimer prepared Chapter 6, and Sandra Christensen and Ralph E. Smith prepared Chapter 7. Budget authority and outlay estimates were coordinated by Paul R. Cullinan, Peter H. Fontaine, Michael A. Miller, and Murray N. Ross. The staff of the Joint Committee on Taxation prepared most of the revenue estimates. The longer-term Social Security estimates were made by the Social Security Administration, Office of the Actuary. CBO developed the longer-term Medicare estimates using information provided by the Health Care Financing Administration, Office of the Actuary.

Paul L. Houts and Sherry Snyder supervised the editing and production of the report. Major portions were edited by Paul L. Houts, Sherwood D. Kohn, Leah Mazade, and Sherry Snyder. Christian Spoor provided editorial assistance during production. The authors owe thanks to Cynthia Cleveland, Sharon Corbin-Jallow, Denise Jordan, Angela Z. McCollough, Ronald Moore, L. Rae Roy, and Simone Thomas, who typed the many drafts. Kathryn Quattrone and Jill Sands prepared the report for publication.

ONE         INTRODUCTION
 

                The Deficit: How Big a Problem?
                Major Proposals for Balancing the Budget
                How to Use This Report
                Some Specific Uses for the Options
                Other General Caveats in Using This Volume
 

TWO     REVENUES

                Trends and International Comparisons
                Revenue-Raising Options

Raise Income Tax Rates
 

REV-01 Raise Marginal Tax Rates for Individuals and Corporation
REV-02 Amend or Repeal the Indexing of Income Tax Schedules
REV-03 Tax All Corporate Income at a 35 Percent Rate

Restrict Itemized Deductions and Credits Under the Income Tax
 

REV-04 Eliminate or Limit Deductions for Mortgage Interest
REV-05 Eliminate or Limit Deductions of State and Local Taxes
REV-06 Eliminate or Limit Deductions for Charitable Giving
REV-07 Limit the Tax Benefit of Itemized Deductions to 15 Percent
REV-08 Phase Out the Dependent-Care Credit

Restrict the Tax-Favored Treatment of Nonretirement Fringe Benefits
 

REV-09 Impose an Excise Tax on Nonretirement Fringe Benefits
REV-10 Tax Employer-Paid Health Insurance
REV-11 Tax Employer-Paid Life Insurance

Restrict the Tax-Favored Treatment of Certain Household Income
 

REV-12 Decrease Limits on Contributions to Qualified Pension and Profit-Sharing Plans
REV-13 Impose a 5 Percent Tax on Investment Income of Pension Plans and Individual Retirement Accounts
REV-14 Tax the Income-Replacement Portion of Workers' Compensation and Black Lung Benefits
REV-15 Increase Taxation of Social Security and Railroad Retirement Benefits
REV-16 Tax Investment Income from Life Insurance and All Annuities
REV-17 Tax a Portion of the Insurance Value of Medicare Benefits

Increase Taxes Dedicated to Social Insurance Trust Funds

REV-18 Expand Medicare and Social Security Coverage
REV-19 Increase the Payroll Tax Rate for Medicare Hospital Insurance by One Percentage Point
REV-20 Increase the Maximum Taxable Earnings for the Social Security Payroll Tax

Increase Taxes on Income from Worldwide Activity

REV-21 Curtail Tax Subsidies for Exports
REV-22 Impose a Minimum Tax on Foreign-Owned Businesses

Broaden Taxes on Wealth and Capital Gains

REV-23 Tax Capital Gains from Home Sales
REV-24 Tax Capital Gains Held Until Death
REV-25 Increase Estate and Gift Taxes

Curtail Income Tax Preferences for Businesses
 
REV-26 Amortize a Portion of Advertising Costs
REV-27 Eliminate Private-Purpose, Tax-Exempt Bonds
REV-28 Reduce Tax Credits for Rehabilitating Buildings
REV-29 Repeal the Possessions Tax Credit
REV-30 Disallow Interest Deductions for Corporate-Owned Life Insurance Loans
REV-31 Repeal the Low-Income Housing Credit
REV-32 Repeal the Tax Preference for Bad-Debt Reserves of Thrift Institutions
REV-33 Tax Credit Unions Like Other Thrift Institutions
REV-34 Repeal Tax Preferences for Extractive Industries
REV-35 Capitalize the Costs of Producing Timber
REV-36 Repeal the Partial Exemption for Alcohol Fuels from Excise Taxes on Motor Fuels 79

Impose Broad-Based Taxes on Consumption
 
REV-37 Impose a Value-Added Tax
REV-38 Impose a Broad-Based Energy Tax

Increase Excise Taxes

REV-39 Increase Excise Taxes on Tobacco and Alcoholic Beverages
REV-40 Increase Taxes on Petroleum and Motor Fuels
REV-41 Impose Excise Taxes on Water Pollutants
REV-42 Impose Excise Taxes on Air Pollutants
 

THREE         DEFENSE AND INTERNATIONAL DISCRETIONARY SPENDING 
 
                    The National Defense Budget
                    The International Affairs Budget 

Strategic Systems
 
DEF-01 Reduce Nuclear Delivery Systems Within Overall Limits of START II
DEF-02 Terminate Production of D5 Missiles After 1996
DEF-03 Reduce the Scope of DOE's Stockpile Stewardship and Management Program
DEF-04 Focus Theater Missile Defense Efforts on Core Systems 112
 
Navy/Marine Corps Programs
 
DEF-05 Cancel the New Attack Submarine
DEF-06 Reduce the Number of Aircraft Carriers and Air Wings to 10
DEF-07 Reduce Procurement of DDG-51 Destroyers
DEF-08 Cancel the Upgrade of the Navy's F/A-18 Fighter and Buy the Current Model
DEF-09 Cancel the Marine Corps's V-22 Aircraft Program and Buy CH-53E Helicopters
DEF-10 Reduce Air Force Tactical Forces

Air Force Programs
 
DEF-11 Cancel the Air Force's F-22 Aircraft Program
DEF-12 Buy No More Than 40 C-17s and Buy Commercial Airlifters Instead
DEF-13 Defer Modernization of Tactical Airlift
DEF-14 Retire Excess KC-135 Tankers
DEF-15 Make the Army Responsible for Close Air Support
DEF-16 Freeze Funding for Military Space Programs

Army Programs
 
DEF-17 Reduce the Number of Army Light Divisions
DEF-18 Eliminate Four Guard Divisions
DEF-19 Cancel the Army's Tank Upgrade Program and Lay Away Production Facilities
DEF-20 Cancel the Army's Comanche Helicopter Program
DEF-21 Preposition Army Forces on Land Rather Than Afloat

Other Investment
 
DEF-22 Cut Spending for Dual-Use Technology Programs to Historical Levels

Military Personnel
 
DEF-23 Assign a Wartime Function to Military Personnel in Training or Transit
DEF-24 Restructure Military Housing Allowances
DEF-25 Reduce the Basic Allowance for Subsistence of Enlisted Personnel
DEF-26 Restructure Officer Accession Programs
DEF-27 Restructure the Bonus Program for Pilots
DEF-28 Restructure the Bonus Program for Nuclear Officers
DEF-29 Restructure Reserve Compensation
DEF-30 Deny Unemployment Compensation to Service Members Who Voluntarily Leave Military Service

Military Health Care
 
DEF-31 Adopt HMO Staffing Patterns in Military Medical Facilities
DEF-32 Revise Cost Sharing for Military Health Care Benefits
DEF-33 Downsize the Military Medical System
DEF-34 Close the Uniformed Services University of the Health Sciences

Operation and Maintenance
 
DEF-35 Close and Realign Additional Military Bases
DEF-36 Reduce Professional Development Education
DEF-37 Reduce Funding for DOE's Cleanup Program
DEF-38 Consolidate Pilot Training and Delay Buying the Joint Primary Aircraft Training System
DEF-39 Increase Competition Between Private-Sector and Department of Defense Housing
DEF-40 Raise Tobacco Prices in Military Commissaries to Near Market Level
DEF-41 Reduce the DoD Civilian Acquisition Workforce
DEF-42 Encourage Private Ownership of Industrial Assets Used in Defense Production
DEF-43 Eliminate Nonappropriated Fund Subsidies to Morale, Welfare, and Recreation Activities That Operate Like
                Businesses
DEF-44 Privatize Public Maintenance Depots and Use Competition to Allocate Tasks

International Programs
 
DEF-45 Reduce State Department Funding and Eliminate Miscellaneous Foreign Affairs Activities
DEF-46 Eliminate Overseas Broadcasting
DEF-47 Recover the Full Cost of Military Exports
DEF-48 Reduce Security Assistance
DEF-49 Eliminate P.L. 480 Title I Sales and Title III Grants
 

FOUR         DOMESTIC DISCRETIONARY SPENDING

                    Recent Developments and Trends
                    Rationales For and Against Spending Reductions
                    Process and Presentation

General Science, Space, and Technology
 
DOM-01 Cancel the International Space Station Program
DOM-02 Scale Back and Delay NASA's Earth Observation System
DOM-03 Eliminate the Experimental Program to Stimulate Competitive Research

Energy
 
DOM-04 Reduce Basic Research Related to Energy and Materials Sciences by the Department of Energy
DOM-05 Eliminate R&D Programs for Nuclear Power and Fossil Fuels
DOM-06 Eliminate R&D for Energy Conservation and for Solar and Other Renewable Energy Resources
DOM-07 Eliminate Further Funding for the Clean Coal Technology Program
DOM-08 Eliminate Energy Conservation Grant Programs
DOM-09 Sell the Strategic Petroleum Reserve
DOM-10 Eliminate Electrification and Telephone Credit Subsidies Provided by the Rural Utilities Service

Natural Resources and Environment
 
DOM-11 Increase Net Receipts from National Forest Timber Sales
DOM-12 Eliminate Federal Grants for Water Infrastructure Programs
DOM-13 Impose a Five-Year Moratorium on Land Purchases by the Departments of Agriculture and the Interior
DOM-14 Eliminate the Superfund Program or Revise Its Cleanup Criteria
DOM-15 Redirect the Nuclear Waste Disposal Program Toward an Interim Storage Policy
DOM-16 Reduce National Weather Service Costs

Agriculture
 
DOM-17 Reduce Federal Support for Agricultural Research and Extension Activities
DOM-18 Reduce Department of Agriculture Spending for Export Marketing and International Activities
DOM-19 Eliminate Emergency Disaster Loans Made by the Department of Agriculture

Credit and Commerce
 
DOM-20 End Small Business Administration Loans and Loan Guarantees
DOM-21 Reduce the Budget of the Export Administration
DOM-22 Reduce Costs of the ITA by Eliminating Trade Promotion Activities or Charging the Beneficiaries
DOM-23 Eliminate the Advanced Technology Program
DOM-24 Eliminate the Manufacturing Extension Partnership and the National Quality Program
DOM-25 Eliminate New Funding for the Rural Rental Housing Assistance Program
DOM-26 Scale Back the Housing Loan Program for Rural Homeowners

Transportation
 
DOM-27 Reduce Federal Aid for Mass Transit
DOM-28 Eliminate the Intelligent Transportation Systems Program
DOM-29 Eliminate the Operating Subsidy for Amtrak
DOM-30 Eliminate Airport Grants-in-Aid
DOM-31 Eliminate the Essential Air Service Program
DOM-32 Eliminate NASA's Support for Producers of Commercial Airliners

Community and Regional Development
 
DOM-33 Eliminate Certain Rural Development Programs
DOM-34 Eliminate the Economic Development Administration
DOM-35 Eliminate the Appalachian Regional Commission
DOM-36 Eliminate or Restrict Community Development Block Grants
DOM-37 Eliminate Federal Support for Tennessee Valley Authority Activities
DOM-38 Consolidate Area Offices of the Bureau of Indian Affairs
DOM-39 Eliminate the Neighborhood Reinvestment Corporation
DOM-40 Eliminate the Minority Business Development Agency

Education, Training, Employment, and Social Services
 
DOM-41 Eliminate Funding for Head Start
DOM-42 Eliminate or Reduce Funding for Title I, Education for the Disadvantaged
DOM-43 Eliminate Funding for Bilingual Education
DOM-44 Eliminate Funding to School Districts for Impact Aid
DOM-45 Eliminate Funding for the Safe and Drug-Free Schools and Communities Act
DOM-46 Reduce Funding for Elementary and Secondary Education Programs
DOM-47 Eliminate 18 Small Grant Programs in the Department of Education
DOM-48 Eliminate State Student Incentive Grants
DOM-49 Eliminate Federal Funding for Campus-Based Student Aid
DOM-50 Eliminate Funding for the National and Community Service Act
DOM-51 Eliminate the Senior Community Service Employment Program
DOM-52 Consolidate Social Service Programs and Reduce Their Budgets
DOM-53 Eliminate or Reduce Funding for the Arts and Humanities

Health
 
DOM-54 Reduce the Maternal and Child Health Care Block Grant and the Preventive Health Services Block Grant
DOM-55 Eliminate Subsidies for Health Professions Education
DOM-56 Reduce Funding for Research Supported by the National Institutes of Health
DOM-57 Limit the Government's Cost for the FEHB Program by Adopting an Employee Voucher Plan

Income Security
 
DOM-58 Eliminate Low-Income Home Energy Assistance
DOM-59 End the Expansion of Programs for Building New Housing Units for Elderly and Disabled People
DOM-60 Reduce Federal Rent Subsidies by Shifting Some Costs to Tenants
DOM-61 Reduce the Number of Families Receiving Rental Assistance

Veterans Benefits and Services
 
DOM-62 Reduce Staffing at VA Medical Facilities by 5 Percent

Administration of Justice
 
DOM-63 Revise the Mandatory Sentencing System for Some Nonviolent Federal Crimes
DOM-64 Reduce Funding for Law Enforcement Efforts to Control Illegal Drugs

General Government, Allowances, and Multifunction Options
 
DOM-65 Reduce the Overhead Rate on Federally Sponsored University Research
DOM-66 Reduce the Number of Political Appointees
DOM-67 Eliminate the One-Dollar Bill and Replace It with a New Dollar Coin
DOM-68 Repeal the Service Contract Act
DOM-69 Repeal or Modify the Davis-Bacon Act
 

FIVE         ENTITLEMENTS AND OTHER MANDATORY SPENDING
 
                    Factors Underlying the Growth in Mandatory Spending
                    Pay-As-You-Go Rules
                    Program Trends and Options

Energy
 
ENT-01 Restructure the Power Marketing Administrations to Charge Higher Rates and End Direct Subsidies

Natural Resources and Environment
 
ENT-02 Change the Revenue-Sharing Formula from a Gross-Receipt to a Net-Receipt Basis for Commercial Activity on
                Federal Lands
ENT-03 Charge Royalties and Holding Fees for Hardrock Mining on Federal Lands
ENT-04 Reform Public Land Recreation Fee and Concessions Policies
ENT-05 Raise Grazing Fees on Public Lands
ENT-06 Recover Costs Associated with Administering U.S. Army Corps of Engineers Permitting Programs

Agriculture
 
ENT-07 Reduce Loan Guarantees Made Under the USDA's Export Credit Programs by Eliminating Guarantees for Loans to
            High-Risk Borrowers
ENT-08 Eliminate the Export Enhancement Program
ENT-09 Eliminate the Market Access Program
ENT-10 Increase Producer Assessments to Participants in the Federal Program Supporting the Price of Tobacco

Commerce
 
ENT-11 Increase FCC User Fees
ENT-12 Charge a User Fee on Commodity Futures and Options Contract Transactions
ENT-13 Eliminate the Flood Insurance Subsidy on Pre-FIRM Structures
ENT-14 Extend and Broaden the FCC's Authority to Use Auctions to Assign Licenses to Use the Radio Spectrum
ENT-15 Auction Advanced Television Licenses

Transportation

ENT-16 Impose User Fees on the Inland Waterway System
ENT-17 Establish Charges for Airport Takeoff and Landing Slots
ENT-18 Establish User Fees for Air Traffic Control Service
ENT-19 Increase User Fees for FAA Certificates and Registrations

Education
 
ENT-20 Reduce Subsidies for Loans to Students and Parents
ENT-21 Raise the Cost of the Student Loan Program to Lenders, Guaranty Agencies, and Schools
ENT-22 Reduce Student Loan Spending by Including Home Equity in the Determination of Financial Need and Modifying
                the Simplified Needs Test

Health
 
ENT-23 Increase User Fees on Products Regulated by the FDA

Income Security
 
ENT-24 Reduce the 50 Percent Floor on the Federal Share of AFDC, Foster Care, and Adoption Assistance Payments
ENT-25 Reduce Matching Rates for Administrative Costs in the Foster Care and Adoption Assistance Programs
ENT-26 Establish Work Requirements for Food Stamp Recipients
ENT-27 Reduce Federal Employee Retirement Costs
ENT-28 End or Scale Back Trade Adjustment Assistance
ENT-29 Increase Targeting of Child Nutrition Subsidies
ENT-30 Eliminate Small Food Stamp Benefits
ENT-31 Reduce the $20 Exclusion from Income in Supplemental Security Income
ENT-32 Eliminate Individual Functional Assessments as a Means for Children to Qualify for Supplemental Security Income
ENT-33 Create a Sliding Scale for Children's SSI Benefits Based on the Number of Recipients in a Family
ENT-34 Restrict Legal Immigrants' Eligibility for Welfare Programs
ENT-35 Limit Spending in the Emergency Assistance Program
ENT-36 Eliminate the $50 Child Support Payment to AFDC Families
ENT-37 Replace Federal Programs Assisting Needy Families with Block Grants to the States
ENT-38 Reduce the Federal Matching Rate and Increase Fees in the Child Support Enforcement Program

Social Security
 
ENT-39 Reduce the Replacement Rate Within Each Bracket of the Social Security Benefit Formula
ENT-40 Lengthen the Social Security Benefit Computation Period by Three Years
ENT-41 Eliminate Social Security Benefits for Children of Retirees Ages 62 to 64
ENT-42 Consider Veterans' Compensation When Determining Social Security Disability Income Payments

Veterans Benefits and Services
 
ENT-43 End Future Veterans' Compensation Payments for Certain Veterans with Low-Rated Disabilities
ENT-44 End Veterans' Disability and Death Compensation Awards in Future Cases When a Disability Is Unrelated to
                Military Duties
ENT-45 Eliminate "Sunset" Dates on Certain Provisions for Veterans in the Omnibus Budget Reconciliation Act of 1993

Allowances (All Functions)
 
ENT-46 Eliminate the Presidential Election Campaign Fund and Raise the Limit on Presidential Campaign Contributions
            by Individuals
ENT-47 Impose a Cost-of-Capital Offset Fee on Fannie Mae and Freddie Mac
ENT-48 Restrict Cost-of-Living Adjustments in Non-Means-Tested Benefit Programs
ENT-49 Apply Means Tests to Federal Entitlements
ENT-50 Charge Federal Employees Commercial Rates for Parking
ENT-51 Make Permanent Various Expiring User Fees Included in the Omnibus Budget Reconciliation Acts of 1990 and 1993
 

SIX             MEDICARE AND MEDICAID: DEFICIT REDUCTION AND PROGRAM RESTRUCTURING 415
 
                    I. Medicare
                    II. Medicaid

SEVEN     ADDRESSING THE IMPACT OF THE AGING POPULATION ON THE LONG-TERM FEDERAL DEFICIT

                I. The Long-Term Budgetary Impacts of an Aging Population
                II. Social Security
            III. Medicare
 

APPENDIXES

A Estimated Savings from the Administration's 1997 Request for Selected National Defense Options
B Spending Options by Budget Function
 

GLOSSARY

TABLES
 
1-1. CBO Budget Outlook Under Current-Policy Economic Assumptions with Discretionary Inflation
1-2. Projections of Federal Receipts and Expenditures, Calendar Years 1995-2050
1-3. CBO Estimate of the President's 1997 Budget and the 1997 Budget Resolution Under Balanced Budget Assumptions
1-4. Illustrative Deficit Reduction Path
2-1. CBO Projections for Revenues Under Current-Policy Economic Assumptions
2-2. Individual Income Tax Brackets, 1996
2-3. The Size of Two Possible Tax Bases for a Value-Added Tax, 1994
3-1. U.S. Military Forces
3-2. Appropriations for National Defense for Fiscal Year 1996
3-3. Alternative Budget Paths for National Defense
3-4. Appropriations for International Affairs for Fiscal Year 1996
4-1. Budget Authority and Outlays for Domestic Discretionary Programs, by Budget Function, Fiscal Year 1996
5-1. Sources of Growth in Mandatory Spending
5-2. CBO Projections for Mandatory Spending Under Current-Policy Economic Assumptions
6-1. Projections of Medicare Outlays, 1996-2002
6-2. Projections of Medicare Benefits by Type of Service
6-3. Budgetary Impact of Illustrative Medicare Packages, 1997-2002
6-4. Illustrative Medicare Savings Options: Scenario I--$100 Billion Savings Target, 1997-2002
6-5. Projections of SMI Monthly Premiums
6-6. HI Trust Fund Status
6-7. Illustrative Medicare Savings Options: Scenario II--$200 Billion Savings Target, 1997-2002
6-8. Projections of Federal Medicaid Outlays, 1996-2002
6-9. Projections of Medicaid Beneficiaries and Federal Outlays for Medicaid Benefits, 1996-2002
6-10. Federal Medicaid Outlays Under the Block Grant Option, 1996-2002
6-11. Federal Medicaid Outlays Under the Option for a Per Capita Cap, 1996-2002
6-12. Federal Medicaid Outlays Under a Proportional Reduction in Federal Matching Rates, 1996-2002
7-1. Increases in Normal Retirement Age Under Current Law and Two Illustrative Options
7-2. Medicare Enrollment and Costs, 1975-1995
7-3. Medicare Enrollment and Costs Projected to 2070, Under Current Law
7-4. Medicare Enrollment and Costs Projected to 2070, Assuming Age of Eligibility Is Increased to 70 by 2032
7-5. Medicare Enrollment and Costs Projected to 2070, Assuming Collections from Enrollees Are Increased to Cover 50
           Percent of All Medicare Costs by 2010
7-6. Medicare Enrollment and Costs Projected to 2070, Assuming an Annual Increase of 4.3 Percent in Medicare's Defined
        Contribution After 2010
A-1. Estimated Savings from the Administration's 1997 Plan for Selected Department of Defense Options
 
 
FIGURES
 
2-1. Total Revenues as a Share of GDP
2-2. Revenues by Source as a Share of GDP
2-3. Total Tax Revenues as a Percentage of GDP, 1993
2-4 Taxes on General Consumption as a Percentage of Total Taxation, 1993
3-1. Budget Authority for National Defense
3-2. Outlays for International Affairs
4-1. Domestic Discretionary Spending as a Share of GDP
7-1. Growth in Social Security Outlays and Number of Beneficiaries, 1975-2070
7-2. Primary Insurance Amounts in Relation to Average Indexed Monthly Earnings Under Current Law for Workers
        Who Turned Age 62 in 1996
7-3. Illustrative Options for Reducing Growth in Social Security Outlays
7-4. Net Medicare Costs as a Percentage of GDP Under Alternative Options
7-5. Premiums as a Percentage of Enrollee Income Under Alternative Options
 

BOXES
 

1-1. A Look at Recent Efforts to Reduce the Deficit
4-1. Categories of Domestic Discretionary Spending
6-1. Options to Reduce Growth in Medicare Spending
6-2. Adjusting Payments for Favorable Selection
6-3. Options to Increase Medicare Revenues
6-4. Stacking Order and the Savings from Risk-Based Plans
7-1. The Outlook for Medicaid
7-2. The Advisory Council's Plans for Balancing the Trust Funds
7-3. Medicaid Supplements to Medicare

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