Highlights
Balances the budget by 2020 with a modest surplus in 2021 Reduces publicly held debt to approximately 54.5 percent of GDP by 2021 Lowers spending to 18.4 percent of GDP Cosponsored by Sens. Jim DeMint (S.C.), David Vitter (La.), Tom Coburn (Okla.), Richard Burr (N.C.), James Risch (Idaho), Marco Rubio (Fla.), Ron Johnson (Wisc.) and Mike Lee (Utah)
Economy and Taxes
Promotes pro-growth economic policies that will create jobs and prosperity Simplifies the tax code by consolidating the current six brackets into three brackets Lowers marginal rates and eliminates special-interest tax loopholes and deductions Indexes the alternative minimum tax for inflation Reduces the corporate tax rate from 35 percent to 25 percent Implements a territorial tax system Returns revenue to 18.5 percent of GDP – well within the historical norm – and allows the federal government to fund essential programs while fostering economic growth
Health Care
Repeals Obamacare taxes, spending and entitlement programs Medicare Permanently reforms the sustainable growth rate so doctors do not face the prospect of devastating cuts each year. Implements medical malpractice reform Medicaid Promotes flexibility by implementing a block grant program to the states Gradually reduces spending to $14 billion more than pre-stimulus levels (2008 level) by 2019 Keeps spending above the 2000 level adjusted for population growth and inflation
Defense Spending
Uses the savings identified by Defense Secretary Robert Gates to slow the growth of defense spending without compromising America’s security Assumes full withdrawal from Iraq and Afghanistan by 2018 (contingent on security needs)
Non-Defense Discretionary Spending
Reduces to 2006 levels ($435 billion) in 2012 and freezes for the subsequent six years, after which it indexes to consumer price index
Other Mandatory Spending
Gradually reduces to just more than 2007 levels by 2014, after which it grows at CPI Reforms welfare programs by setting fixed annual spending caps
