washingtonscene
it would require several years of COLA forfeitures, plus maybe rolling back recent payments to SBP/Dependency Indemnity Compensation survivors or reinstituting some level of benefit reduction upon re- ceipt of Social Security. Other plans would cap spending at
lower percentages of the GDP and impose far more severe cuts. For example, the balanced budget amendment (H.J. Res. 1) introduced in the House would cap federal
outlays at 20 percent of the GDP. The Judi- ciary Committee subsequently amended it to reduce that to 18 percent. Neither version would exempt any spending category, allowing the ceilings to be waived only in years when war is formally declared or when Congress passes a joint resolution if the country is engaged in armed conflict that causes “an imminent and serious military threat to national security.”
What’s Your Budget-Cap Pain?
This chart illustrates the relative level of cuts that would be imposed by various budget-cap and balanced-budget proposals that have been introduced or in the news. (See the highlighted sections on page 31 and above for specific examples of cuts needed to meet the Corker-McCaskill plan alone.)
Federal Plan
Corker-McCaskill Budget Cap (S. 245)
Balanced Budget Amendment (H.J. Res. 1)
House Judiciary Version of H.J. Res. 1
House “Cut, Cap, and Balance” Plan (H.R. 2560)
Spending Limit
FY 2013: 25 percent of FY 2009-11 GDP outyears: Reduce by 0.17 percent a year
20 percent of GDP
Exemptions From Limits
None
Retired Pay/SBP/ TFL Impact
5-percent cut for FY 2013, rising to 16 percent by FY 2019
None
Uncertain but far larger than the Corker-McCaskill plan
18 percent of GDP None
Uncertain but far larger than the original version of H.J. Res. 1
FY 2012: 21-percent cut in nonexempt spending
FY 2012: Medicare, Social Security, VA, net interest only
FY 2013+: Add military personnel, re- tirement, TFL; large cut for FY 2012 before exemption kicks in to protect against further cuts in FY 2013+
“Gang of Six” Sen- ate Plan
Cuts by program, similar to 2010 deficit commission ($4.5 trillion over 10 years)
Sen. Tom Coburn (R-Okla.)
Cuts by program ($8 trillion over 10 years)
n/a
TFL: $3,000 cut a year per person; defer retired pay until 57 for new en- trants; raise TRICARE fees $1,000 to $2,000 a year; revise COLAs
n/a
TFL: $3,000 cut a year per person; drop TRICARE Prime for retirees; raise retiree fees to $2,000/$3,500 (single/family) a year for TRICARE Standard; defund commissaries; re- vise COLAs
32 MILITARY OFFICER SEPTEMBER 2011
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