The Schakowsky plan would close the deficit without "Forcing the Middle Class" to pay all the bills is based on five key elements:
1) Increased economic stimulus to spur growth in the immediate term
· Provide $200 billion to invest over the next two years in measures to create jobs and spur economic growth, including passing the Local Jobs for America Act; and funding for education and law enforcement; Unemployment Insurance, Federal Medical Assistance Percentages (FMAP) and Supplemental Nutrition Assistance Program extensions; and infrastructure.
· Adopt the President’s proposals to eliminate overseas tax havens and incentives for outsourcing
2) Smart, targeted spending cuts
· Defense Discretionary – $110.7 billion in cuts from the 2015 defense budget, including efficiency savings, reducing our troop levels, cutting weapons systems we don’t need, and scaling back the wartime increases in the size of the military.
3) Mandatory spending cuts
* Health Care – at least $31.2 billion in savings by implementing measures to bring down the cost of health care to the federal government and lower health care inflation overall.
* Other – $7.7 billion in savings by cutting agriculture subsidies in half, and redistributing federal support to offer greater benefits to small family farms reduce subsidies to large corporate agribusiness.
4) Reductions in tax expenditures
* Raise $132.2 billion by closing tax subsidies for companies that ship American jobs overseas.
5) Increases in revenues
* Raise $144.6 billion in revenue through progressive reforms to the estate tax, treating capital gains and dividends as regular income, and enacting a cap and trade proposal that includes protections for lower-income people.
* Enact President Obama’s budget proposal to let the Bush tax cuts for the top 2 brackets expire and return to 2009 estate tax levels.
* Non-tax revenue – raise $7 billion by addressing places where the private sector is currently under-paying.
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