The negotiators already know the main elements of an agreement. Spending cuts should exceed the amount of new revenues. That should not be hard because $2tn of cuts are already agreed; $1.2tn in reduced discretionary spending was enacted last year and an additional $800bn will be realised by ending the Iraq and Afghanistan deployments. But it is also time to restrain entitlement spending, which has been soaring. Steps such as means testing Medicare, modernising cost of living adjustment formulas and others could save another $600bn. When the resultant interest savings are added in, total spending is reduced by $3.2tn over 10 years.
参与协商的人已经清楚协议中的要点。支出削减应该超过新增财政收入。这一点不难做到,因为有两万亿美元的减支已获各方同意。去年已经通过自主性减支1.2万亿美元,从伊拉克和阿富汗撤兵将节省8000亿美元开支。但现在还需要限制之前飙升的福利支出。采取通过资产测查确定哪些人可以享受“联邦医疗保险计划(Medicare)、更新生活成本调整公式(cost of living adjustment formula)等措施,可能还能节省6000亿美元开支。再加上由此节省的利息,10年内将减少支出3.2万亿美元。
It is also important to include a growth initiative. The 2010 payroll tax cut and bonus depreciation should be extended together with emergency unemployment insurance and other expiring provisions. These would cost $200bn annually, reducing the net spending cuts to $3tn.
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