REP. KHANNA UNVEILS PROGRESSIVE DEFICIT REDUCTION PLAN TO REDUCE THE DEFICIT BY $12 TRILLION OVER THE NEXT DECADE
Washington, DC — Today Representative Ro Khanna (CA-17) announced a new Progressive Deficit Reduction Plan to reduce the deficit by $12 trillion over the next decade – allowing for investment in essential programs for ordinary Americans: childcare, universal healthcare, affordable housing, free college, advanced manufacturing, and good-paying jobs.
Watch Rep. Khanna’s floor speech unveiling the plan
The plan will cut spending by modernizing the Pentagon, tackling Medicare Advantage upcoding and fraud, negotiating drug prices, and ending fossil fuel subsidies. It will also increase revenue through taxing corporations and billionaires fairly while ending the cap that allows the wealthy to stop paying into Social Security each year after their first $176,000.
The Republican’s reconciliation bill would raise the deficit-to-GDP ratio to 7-8.6% and add $3 trillion to the debt by 2034. On top of that, it doubles interest costs alone to almost $2 trillion over a decade.
In contrast, Khanna's Progressive Deficit Reduction Plan brings the deficit-to-GDP ratio to 3% in 2034 and cuts interest payments on the debt by more than $1.9 trillion over a decade, bringing total savings to $14 trillion.
Spending Cuts Over 10 Years
- Modernize Military and Reform Contracting — Nearly $1 Trillion spending cuts
- Get Rid of Upcoding and Fraud in Medicare Advantage — $830 Billion spending cuts
- Negotiate Medicare Drug Prices — $200 Billion spending cuts
- End Fossil Fuel Subsidies — $170 Billion spending cuts
- Implement Smarter Procurement and Contracting — $300 Billion spending cuts
Increased Revenue Over 10 Years
- Tax Corporations Fairly — $2 Trillion increased revenue
- Tax Billionaires — $4.7 Trillion increased revenue
- Protect Social Security — $2.9 Trillion increased revenue
For the full plan, click here.
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