Handout #10
O.K., You Fix the Budget Project: 15 points
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Use the interactive online budget puzzle to keep track of your decisions and track your savings for the budget.
Current projected 2015 shortfall: $418 billion
Your savings from tax increases: ______% Your savings from spending cuts: ______%
Current projected 2030 shortfall: $1,345 billion
Your savings from tax increases: ______% Your savings from spending cuts: ______%
Yes / No / Read each description before checking it. Briefly write your reason why you supported or opposed this. Your answer should indicate what good or bad effect you think would happen from supporting or opposing.Cut foreign aid in half
Eliminate Earmarks
Eliminate Farm Subsidies
Cut pay of civilian federal workers by 5%
Reduce federal workforce by 10%
Cut 250,000 government contractors
Other cuts to federal government
Cut aid to states by 5%
Reduce nuclear arsenal and space spending
Reduce military to pre-Iraq War size & further reduce Asia & Europe troops
Reduce Navy & Air Force fleets
Cancel or delay some weapons programs
Reduce noncombat military compensation & overhead
Reduce the troop numbers Afghanistan & Iraq to 60,000 by 2015
Reduce the troop numbers Afghanistan & Iraq to 30,000 by 2013
Enact medical malpractice reform
Increase the Medicare eligibility age to 68
Increase the Medicare eligibility age to 70
Reduce the tax break for employer-provided health insurance
Cap Medicare growth starting in 2013
Raise the Social Security retirement age to 68
Raise the Social Security retirement age to 70
Reduce Social Security benefits for those with high incomes
Tighten eligibility for disability
Use an alternative measure for inflation
Estate taxes
Lincoln-Kyl proposal for
Estate taxes
President Obama's proposal
Return the estate tax to Clinton-era levels
President Obama's proposal for investment taxes
Return investment taxes to Clinton-era levels
Allow expiration for income tax cuts for those above $250,000 year
Allow expiration for income tax cuts for those below $250,000 year
Payroll tax: make some incomes above $106,000 pay the tax
Millionaire's tax on income above $1million
Eliminate loopholes, reduce tax rates
Eliminate loopholes, but keep taxes slightly higher
Reduce mortgage deduction and others for high-income households
National sales tax
Carbon tax
Bank tax
In this space, describe the two hardest choices had to make for this budget puzzle. Explain why you had a hard time with them.