House Republicans have submitted a new fiscal cliff proposal to the White House. Here's the basic outline of the proposal, with some additional details from Speaker Boehner's letter today to Obama and my colleagues at the Post:
- Revenue through tax reform: $800 Billion
"New revenues would be generated through pro-growth tax reform that closes special-interest loopholes and deductions while lowering rates," according to Boehner's letter.
- Health Savings: $600 billion
The savings would be achieved through structural Medicare reform." One option for achieving this would be raising the Medicare eligibility age from 65 to 67**.
- Other mandatory savings: $300 billion
These cuts would include reductions to farm subsidies.
- Revision to the Consumer Price Index: $200 billion
Under this change, a less-generous measure of inflation would be applied throughout the government, including Social Security, slowing the growth of benefits over time.
- Further discretionary savings: $300 billion
NET SAVINGS: $2.2 Trillion
WHITE HOUSE ACCOUNTING: $4.6 trillion*
*This includes the BCA Cuts, interest savings, and money saved from ending the wars in the Iraq and Afghanistan, which Obama includes in the accounting for his own deficit proposal.
**Update: Further reports confirms that raising the Medicare age was one possibility, not the only proposal for reform that Boehner is offering.