Budgetary Reform Potential Budget Savings in 2020 (billions) Reductions in Mandatory Spending Repeal the expansion of health care coverage under the Affordable Care Act $150 Repeal the individual health insurance mandate $40 Raise the age of Medicare eligibility to 67 $30 Raise the full retirement age for Social Security $30 Link Social Security payments to average prices rather than average earnings $30 Limit malpractice torts $10 Increase the interest rates charged on student loans $10 Reductions in Discretionary Spending Allow the sequestration budget cuts to reduce military spending $75 Allow the sequestration budget cuts to reduce non-military spending $70 Limit highway funding to expected highway revenues $11 Reduce funding for the National Institutes of Health $4 Reduce Department of Energy funding for energy research $4 Eliminate certain education programs $2 Revenue Increases Allow all 2001, 2003, and 2009 tax cuts to expire as scheduled $550 Limit tax deductions to 15 percent of income $150 Institute a tax on greenhouse gas emissions $140 Eliminate the tax deduction for state and local income $110 Increase the earnings subject to Social Security taxes $60 Gradually eliminate the mortgage interest deduction $50 Increase the motor fuels excise tax by 25 cents per gallon $30 Table 16.3: Selected Budgetary Reforms, Congressional Budget Office Source: CBO, 2012
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