Comparison of Budget Proposal Plans to Reduce the Deficit

July 31st, 2011
in econ_news

Econintersect: The Congressional Budget Office estimated that the Senate Majority Leader Harry Reid's apply named Budget Control Act of 2011 would reduce budget deficits between $2.1 and $2.4 trillion over 10 years.  Econintersect has estimated that the budget shortfall over ten years is likely in the range of $13 trillion to $17 trillion.

Follow up:

The Reid bill would:

  • Establish caps on discretionary spending through 2021, including separate caps on new funding for war-related activities;

  • Allow for certain amounts of additional spending for “program integrity” initiatives aimed at reducing the amount of improper benefit payments and enhancing compliance with tax laws;

  • Make changes to the Pell Grant and student loan programs;

  • Reduce certain payments to agricultural producers;

  • Establish a procedure for increasing the debt limit by $416 billion initially and subsequent procedures that could allow the limit to be raised in two additional steps, for a cumulative increase of as much as $2.4 trillion;

  • Reinstate and modify certain budget process rules; and

  • Create a joint Congressional committee to propose further deficit reduction.

For more reading on the debt ceiling, please see Debt Ceiling Debate Only Kicks the Can Down the Road

Before you get any ideas that the plan falls short in comparison to the Republican plan, the CBO has compared Reid's plan to House Speaker Boehner's plan.

They both come up short, even more than does the Reid bill.

source: CBO


Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved