Rival plans to cut spending: The details
Washington (AP) — Senate Democrats and House Republicans are pushing rival plans to reduce future budget deficits and avert a potential government default next week. Neither plan raises taxes or cuts major benefit programs such as Medicare, Medicaid or Social Security. Here's how the two plans compare.
• Cuts spending by $2.7 trillion over the next decade, while increasing the government's ability to borrow by $2.4 trillion.
• Extends borrowing authority through 2012.
• Cuts $1.2 trillion from discretionary programs. These are the day-to-day operating budgets, grants and programs of government agencies, such as the Interior, Education Justice and Defense departments and the Environmental Protection Agency.
• Claims savings of $1 trillion from winding down the wars in Iraq and Afghanistan.
• Saves $400 billion from lower interest payments.
• Cuts $100 billion from mandatory programs, including agriculture, Fannie Mae and Freddie Mac. Includes savings from reducing waste, fraud and abuse.
• Creates a bipartisan legislative committee to recommend future cuts, with a guarantee that if the panel can agree on a plan, it will receive a vote in Congress.
• Reduces spending by $1.2 trillion over 10 years, while increasing the government's ability to borrow by about $1 trillion.
• Extends borrowing authority until about February.
• All cuts would come from the day-to-day operating budgets of government agencies, known as discretionary programs.
• Imposes caps on future spending.
• Requires the House and Senate to vote on -- but not necessarily pass -- a balanced budget constitutional amendment by the end of 2011.
• Creates a bipartisan legislative committee to recommend $1.8 trillion in future cuts to programs such as Medicare, Medicaid and Social Security, in exchange for increasing the government's ability to borrow an additional $1.6 trillion.
(Copyright 2011 by The Associated Press. All Rights Reserved.)