Balance the Budget
Can you fix the federal deficit using the Congressional Budget Office's own menu of options? Policy estimates come from CBO; combined results and interest savings are this page's illustrative calculations.
CBO priced these 76 options in December 2024 against its June 2024 projections, which showed $22.1 trillion in deficits over 2025 to 2034. Its latest projections, from February 2026, show $24.4 trillion over 2027 to 2036, with debt held by the public reaching 120.2% of GDP. Pick options to see how far they go.
The calculator starts on CBO's June 2024 projections, the ones its option estimates match. You can switch to the February 2026 projections as an illustrative scenario. The options were estimated before the 2025 tax and spending law, so several would score differently under the 2025 law; those carry a note. See how this works.
Illustrative calculation: CBO's option estimates added together, plus this page's estimate of lower interest costs. · Spending cuts Revenue increases · · See your plan
01Choose Your Options
Choose at most one version of each option. Where CBO describes several ways to do something, the versions are listed under the option with their own estimates. Some options overlap with others (for example, a cut to the overall defense budget and cuts to specific weapons programs), so those cannot be combined here.
02Your Plan
Debt held by the public, share of GDP
Annual deficit, share of GDP
03What Happened Last Time
Congress has tried versions of many of these options before. Each entry says how closely it compares to the CBO option, whether it passed, and what happened afterward. Elections turn on many things at once, so what happened afterward is not necessarily what the policy caused, and none of this is an estimate of how a plan built here would affect elections.
Show all 15 historical episodes
1983The 1983 Social Security rescue
What was proposed or enacted: Signed April 20, 1983: full retirement age to rise in steps to 67 by 2027; up to half of benefits taxed above $25,000 single/$32,000 joint income; scheduled payroll tax increases moved up; federal workers hired from 1984 covered.
Passed or failed: Passed March 24, 1983, 243-102 in the House and 58-14 in the Senate, with majorities of both parties voting yes; signed April 20.
What happened afterward: In the 1984 election Reagan won 49 states and 525 electoral votes, and House Republicans went from 166 to 181 seats.
Related CBO options: Raise the Full Retirement Age for Social Security (closely comparable); Impose a New Payroll Tax (related policy debate: 1983 moved up payroll tax increases already scheduled; CBO's option is a new tax); Expand Social Security to Include Newly Hired State and Local Government Employees (related policy debate: 1983 covered new federal workers; CBO's option covers new state and local workers). Sources: Social Security Amendments of 1983 - Legislative History (SSA); 1983 Amendments: Vote Tallies (SSA); 1984 Electoral College Results (National Archives); Party Divisions of the House of Representatives, 1789 to Present - History, Art and Archives, U.S. House.
1990The 1990 budget deal and the 'no new taxes' pledge
What was proposed or enacted: Signed Nov 5, 1990: top income tax rate 28% to 31%, gas tax up 5 cents a gallon, higher taxes on cigarettes, liquor, beer and wine, 10% luxury surtax, higher Medicare deductible and premiums; about $490 billion in 5-year deficit cuts.
Passed or failed: Passed the House 228-200 on Oct 26, 1990, with Republicans voting 126-47 against; signed Nov 5.
What happened afterward: House Republicans went from 175 to 167 seats in the 1990 midterms. In 1992 Bush lost with 37.5% of the vote to Clinton's 43% and Perot's 19%.
Other context: Bush had pledged no new taxes in 1988. His Gallup approval was 29% in July 1992.
Related CBO options: Increase the Premiums Paid for Medicare Part B (closely comparable); Increase Individual Income Tax Rates on Ordinary Income (closely comparable); Eliminate or Limit Itemized Deductions (closely comparable); Increase Taxes on Alcoholic Beverages (closely comparable); Increase Excise Taxes on Tobacco Products (closely comparable); Increase Excise Taxes on Motor Fuels and Index Them for Inflation (closely comparable). Sources: Highlights of Budget Deal (Christian Science Monitor/UPI, Oct 29, 1990); Roll Call 528, H.R. 5835 Conference Report, 1990 (Clerk of the House); George Bush Retrospective (Gallup); Party Divisions of the House of Representatives, 1789 to Present - History, Art and Archives, U.S. House.
1993Clinton's 1993 deficit package, passed by one vote
What was proposed or enacted: Signed Aug 10, 1993: new 36% and 39.6% income tax rates (39.6% above $250,000), gas tax up 4.3 cents, up to 85% of Social Security benefits taxable above $34,000/$44,000. A broad BTU energy tax was dropped in June.
Passed or failed: Passed the House 218-216 and the Senate 50-50 with Vice President Gore breaking the tie; no Republican in either chamber voted yes. The BTU energy tax was dropped before passage.
What happened afterward: In the 1994 midterms House Republicans went from 176 to 230 seats, a gain of 54.
Related CBO options: Increase Individual Income Tax Rates on Ordinary Income (closely comparable); Increase Excise Taxes on Motor Fuels and Index Them for Inflation (closely comparable); Impose a Tax on Emissions of Greenhouse Gases (related policy debate: the BTU tax would have taxed energy content and was dropped; CBO's option taxes emissions). Sources: Individual Income Tax Rates: 1989 through 2007 (CRS RL30007); When did the Federal Government begin collecting the gas tax? (FHWA); Social Security: Taxation of Benefits (CRS RL30581); Clinton's BTU Tax: An Unmourned Death (Oil and Gas Journal, June 14, 1993); Roll Call 406, H.R. 2264 Conference Report, 1993 (Clerk of the House); Senate Roll Call Vote 247, 103rd Congress (U.S. Senate); Party Divisions of the House of Representatives, 1789 to Present - History, Art and Archives, U.S. House.
1997The 1997 Balanced Budget Act and the surplus years
What was proposed or enacted: Cut Medicare hospital payment updates, tied physician fees to GDP, put nursing homes and home health on fixed payments, and created Medicare+Choice with slower plan payment growth. CBO: about $112 billion in Medicare savings, 1998-2002.
Passed or failed: Passed 346-85 in the House and 85-15 in the Senate.
What happened afterward: Medicare spending fell almost 1% in FY1999, its first decline, and Congress restored about $16 billion over five years in 1999.
Other context: Surpluses followed: $69 billion in FY1998, $124B, $236B, then $127B in FY2001.
Related CBO options: Reduce Medicare Advantage Benchmarks (closely comparable); Reduce Payments for Hospital Outpatient Departments (related policy debate: 1997 slowed hospital payments broadly; CBO's option targets outpatient departments). Sources: Budgetary Implications of the Balanced Budget Act of 1997 (CBO, Dec 1997, archived); Roll Call 345, H.R. 2015 Conference Report, 1997 (Clerk of the House); Medicare Provisions of the Balanced Budget Refinement Act of 1999 (CRS RL30860); The Budget for Fiscal Year 2001 (CRS RL31461); Senate Roll Call Votes, 105th Congress, 1st Session (U.S. Senate).
2005Bush's 2005 Social Security personal accounts push
What was proposed or enacted: Proposed letting workers born 1950 or later put up to 4 points of the 12.4% payroll tax into personal accounts from 2009, with traditional benefits offset; later floated 'progressive price indexing' to slow benefits for higher earners.
Passed or failed: Never introduced as formal legislation or voted on.
What happened afterward: In the 2006 midterms Democrats went from 202 to 233 House seats and won Senate control (51 with 2 independents).
Other context: Gallup, Apr 29-May 1, 2005: 35% approved of Bush on Social Security, 58% disapproved.
Related CBO options: Reduce Social Security Benefits for High Earners (related policy debate: the 2005 debate centered on personal accounts; slower benefit growth for higher earners was floated but never voted on). Sources: Social Security Reform: President Bush's 2005 Individual Account Proposal (CRS RL32879); Bush Fails to Ignite Public Support for Reform (Gallup, May 4, 2005); More Social Security Bunk (FactCheck.org, Oct 2008); Party Divisions of the House of Representatives, 1789 to Present - History, Art and Archives, U.S. House; Party Division - U.S. Senate.
2009Waxman-Markey cap-and-trade passes the House, dies in Senate
What was proposed or enacted: H.R. 2454 capped greenhouse gas emissions from power plants and industry over 2012-2050, with allowances partly auctioned. CBO: about $846 billion in new revenue over 2010-2019 and a net cost of about $175 per household in 2020.
Passed or failed: Passed the House 219-212 on June 26, 2009 (44 Democrats no, 8 Republicans yes). In July 2010 Senate leaders dropped the emissions limits, lacking 60 votes; it never became law.
What happened afterward: In the 2010 midterms House Republicans went from 178 to 242 seats.
Related CBO options: Impose a Tax on Emissions of Greenhouse Gases (related policy debate: cap-and-trade limits emissions and sells permits; CBO's option is a direct tax). Sources: Roll Call 477, H.R. 2454, 2009 (Clerk of the House); CBO's First Cost Estimate of Cap-and-Trade Legislation for the 111th Congress (CBO); Estimated Costs to Households From the Cap-and-Trade Provisions of H.R. 2454 (CBO); Harry Reid: Senate will abandon cap-and-trade energy reform (Christian Science Monitor, July 22, 2010); Party Divisions of the House of Representatives, 1789 to Present - History, Art and Archives, U.S. House.
2010Affordable Care Act pay-fors
What was proposed or enacted: The 2010 law froze Medicare Advantage benchmarks in 2011 and then cut them toward 95% of fee-for-service in high-cost areas, phased in from 2012, and added a 0.9-point Medicare tax on wages over $200,000/$250,000 and a 3.8% tax on high earners' investment income (2013).
Passed or failed: Enacted in March 2010 as part of the Affordable Care Act.
What happened afterward: In the November 2010 midterms House control flipped: Democrats held 257 seats to 178 at the start of the 111th Congress; Republicans held 242 to 193 at the start of the 112th.
Other context: The law also scheduled a 40% tax on high-cost employer plans for 2018 (see the Cadillac tax entry).
Related CBO options: Reduce Medicare Advantage Benchmarks (closely comparable); Modify Payments to Medicare Advantage Plans for Health Risk (related policy debate: the 2010 law cut benchmarks; CBO's option targets risk coding); Impose a Surtax on Individuals' Adjusted Gross Income (related policy debate: the 2010 surtaxes hit wages and investment income above $200,000; CBO's surtax is on all income above a threshold); Expand the Base of the Net Investment Income Tax to Include Active Participants in S Corporations and Limited Partnerships (closely comparable). Sources: KFF - Summary of the Affordable Care Act; U.S. House History - Party Divisions of the House of Representatives.
2011Budget Control Act caps and the 2013 sequester
What was proposed or enacted: The Budget Control Act (signed August 2, 2011) set annual caps on defense and nondefense discretionary spending through FY2021 and ordered automatic across-the-board cuts (sequestration) if a joint 'supercommittee' failed to agree on $1.2 trillion in further savings, which it did.
Passed or failed: Signed August 2, 2011. The supercommittee failed, and the sequester took effect on March 1, 2013: CBO put the FY2013 cut at $85 billion in budget authority and $42 billion in outlays.
What happened afterward: Bipartisan deals raised the caps in 2013, 2015, 2018 and 2019 - in 2018 by $80 billion (defense) and $63 billion (nondefense) for FY2018.
Related CBO options: Reduce the Department of Defense's Annual Budget (closely comparable); Reduce Funding for International Affairs Programs (related policy debate: caps on all nondefense spending, not this program specifically); Reduce Selected Nondefense Discretionary Spending (related policy debate: caps on all nondefense spending, not these grants specifically); Reduce Funding for Certain Grants to State and Local Governments (related policy debate: caps on all nondefense spending, not these grants specifically). Sources: CBO - Automatic Reductions in Government Spending, aka Sequestration (Feb 2013); CRS - Increasing the BCA Spending Limits: Characteristics of Previously Enacted Legislation; CRS - The Bipartisan Budget Act of 2019: Changes to the BCA and Debt Limit.
2011Ryan budget turns Medicare into premium support
What was proposed or enacted: The House GOP budget (passed April 15, 2011, 235-193, no Democrats in favor) would have ended direct Medicare payment from 2022 for people then under 55, giving them federal subsidies to buy private plans.
Passed or failed: Passed the House 235-193 on April 15, 2011; the Senate rejected the budget 57-40 on May 25, with five Republicans voting no. Never enacted.
What happened afterward: On May 24, 2011, Democrat Kathy Hochul won the special election in NY-26, a seat long held by Republicans, about 47% to 43% for Republican Jane Corwin, who backed the plan; Democrats made Medicare the issue.
Related CBO options: Increase the Premiums Paid for Medicare Part B (related policy debate: premium support would have replaced traditional Medicare for future retirees; CBO's option raises Part B premiums); Change the Cost-Sharing Rules for Medicare and Restrict Medigap Insurance (related policy debate: premium support would have replaced traditional Medicare for future retirees; CBO's option changes cost sharing). Sources: PBS NewsHour - House passes Ryan 2012 budget proposal (April 15, 2011); Roll Call - Democrat wins New York special election in upset (May 24, 2011); CNN - Senate rejects House GOP budget (May 25, 2011).
2013Obama proposes chained CPI for Social Security
What was proposed or enacted: President Obama's FY2014 budget (April 10, 2013) proposed indexing Social Security COLAs and other benefit programs to chained CPI, saving at least $230 billion over 10 years, with protection for the oldest beneficiaries.
Passed or failed: Proposed in the FY2014 budget; never enacted. On February 20, 2014, the White House said the FY2015 budget would drop it.
What happened afterward: Liberal groups such as MoveOn welcomed the reversal and Speaker Boehner's office criticized it.
Other context: The proposal divided Democrats and drew protests.
Related CBO options: Use an Alternative Measure of Inflation to Index Social Security and Other Mandatory Programs (closely comparable). Sources: UPI - Budget outlines Social Security changes (April 10, 2013); Christian Science Monitor - Why new Obama budget drops Social Security reform (Feb 20, 2014); U.S. Senate - Party Division.
2013Fiscal cliff deal raises top rates
What was proposed or enacted: The American Taxpayer Relief Act made most 2001-2003 tax cuts permanent but restored a 39.6% top rate above $400,000 ($450,000 joint), raised the top capital gains and dividend rate from 15% to 20%, and let the payroll tax holiday expire.
Passed or failed: Passed January 1, 2013: the Senate voted 89-8 and the House 257-167, with 151 Republicans and 16 Democrats opposed.
Other context: The Tax Policy Center estimated full expiration of the earlier tax cuts would have raised 2013 taxes by more than $500 billion.
Related CBO options: Increase Individual Income Tax Rates on Ordinary Income (closely comparable); Raise the Tax Rates on Long-Term Capital Gains and Qualified Dividends by 2 Percentage Points (closely comparable). Sources: Tax Policy Center - What did the American Taxpayer Relief Act of 2012 do?; U.S. Senate - Roll Call Vote 112th Congress, 2nd Session, Vote 251 (H.R. 8); Office of the Clerk - Roll Call 659, H.R. 8 (Jan 1, 2013).
2017Tax Cuts and Jobs Act
What was proposed or enacted: Signed December 22, 2017: cut the corporate rate from 35% to 21%, cut the top individual rate from 39.6% to 37%, and capped the state and local tax deduction at $10,000; most individual changes were set to expire after 2025 (made permanent in 2025).
Passed or failed: Enacted December 2017 without Democratic votes.
What happened afterward: In the November 2018 midterms the House went from 241-194 Republican to 235-199 Democratic, while Republican Senate seats went from 52 to 53 (start-of-Congress counts).
Other context: Gallup found 29% approval and 56% disapproval on Dec. 1-2, 2017, and 33% to 55% on Jan. 2-7, 2018.
Related CBO options: Eliminate or Limit Itemized Deductions (closely comparable); Increase the Corporate Income Tax Rate by 1 Percentage Point (opposite direction: the 2017 law cut the corporate rate; CBO's option raises it). Sources: CRS - The 2017 Tax Revision (P.L. 115-97): Comparison to 2017 Tax Law; Gallup - Americans remain negative on tax bill after passage (Jan 10, 2018); U.S. House History - Party Divisions of the House of Representatives; U.S. Senate - Party Division.
2019The Cadillac tax is repealed before it starts
What was proposed or enacted: The ACA's 40% excise tax on the value of employer health plans above $10,200 (individual) and $27,500 (family), set to begin in 2018, was a cap on the tax exclusion for job-based coverage in all but name.
Passed or failed: Never took effect. Congress delayed it repeatedly; the House voted 419-6 to repeal it on July 17, 2019, and repeal was enacted on December 20, 2019.
Other context: CBO put the 10-year cost of repeal at $196.9 billion.
Related CBO options: Reduce Tax Subsidies for Employment-Based Health Benefits (closely comparable). Sources: KFF - Summary of the Affordable Care Act; KFF Health News - 'Cadillac Tax' dealt near-certain death blow by unlikely foe: Democrats (July 2019); The Tax Adviser - Tax provisions in the new government spending bill (Dec 2019).
2023Fiscal Responsibility Act debt-limit deal
What was proposed or enacted: The June 2023 debt-limit deal suspended the limit and capped base discretionary funding: $886 billion defense and $704 billion nondefense for FY2024, $895 billion and $711 billion for FY2025.
Passed or failed: Passed the House 314-117 on May 31, 2023 (149 Republicans and 165 Democrats for; 71 Republicans and 46 Democrats against) and the Senate 63-36 on June 1.
What happened afterward: The caps covered only two years.
Other context: CBO estimated it would cut deficits by about $1.5 trillion over 2023-2033.
Related CBO options: Reduce the Department of Defense's Annual Budget (closely comparable); Reduce Funding for International Affairs Programs (related policy debate: caps on total discretionary funding, not this program specifically); Reduce Selected Nondefense Discretionary Spending (related policy debate: caps on total discretionary funding, not these grants specifically); Reduce Funding for Certain Grants to State and Local Governments (related policy debate: caps on total discretionary funding, not these grants specifically). Sources: CBO - Letter on the budgetary effects of H.R. 3746, the Fiscal Responsibility Act of 2023 (May 2023); Office of the Clerk - Roll Call 243, H.R. 3746 (May 31, 2023); U.S. Senate - Roll Call Vote 118th Congress, 1st Session, Vote 146 (H.R. 3746).
2025One Big Beautiful Bill Act
What was proposed or enacted: Signed July 4, 2025: made the 2017 individual rates permanent, raised the SALT cap to $40,000 (phased down above $500,000 of income) and cut federal Medicaid and CHIP spending by $990 billion over 10 years.
Passed or failed: Passed the House 218-214 on July 3, 2025, with no Democratic votes; signed July 4.
What happened afterward: The first federal elections after it became law were set for November 3, 2026.
Other context: CBO estimated $3.4 trillion in added deficits through 2034 and 10 million more uninsured in 2034. KFF polls found 64% unfavorable in June 4-8, 2025, and 63% in July 8-14.
Related CBO options: Limit State Taxes on Health Care Providers (closely comparable); Reduce Federal Medicaid Matching Rates (related policy debate: the 2025 law cut Medicaid through several changes; CBO's option lowers matching rates); Eliminate or Limit Itemized Deductions (opposite direction: the 2025 law raised the state and local tax cap; CBO's options limit deductions); Require EITC and Child Tax Credit Claimants to Have a Social Security Number Valid for Employment (closely comparable). Sources: CBO - Estimated budgetary effects of Public Law 119-21 (July 21, 2025); Georgetown CCF - New CBO health coverage estimates of budget reconciliation law (Aug 2025); KFF - Poll: new tax and budget law remains largely unpopular (July 24, 2025); National Law Review - One Big Beautiful Bill locks in tax cuts, tweaks SALT.
04Every CBO Option, Ranked by 10-Year Savings
All 76 options in CBO's December 2024 volume (27 on benefit programs and other mandatory spending, 17 on annually appropriated spending and 32 on taxes and fees), with the range of savings across the versions CBO estimated. Savings are for 2025 to 2034 and do not include lower interest costs.
05How This Works
The starting point. Two sets of CBO projections are available. The default is CBO's An Update to the Budget and Economic Outlook: 2024 to 2034 (June 2024), the projections the option estimates were measured against: over 2025 to 2034, deficits of $22.1 trillion and debt held by the public reaching 122.4% of GDP. With it, the option estimates and the projections cover the same years under the same law. The alternative is CBO's latest, The Budget and Economic Outlook: 2026 to 2036 (February 2026, laws as of January 14, 2026): over 2027 to 2036, revenues of $70.2 trillion, outlays of $94.6 trillion (including $16.2 trillion of net interest) and deficits of $24.4 trillion. Using it is an illustrative scenario: the option estimates are moved two years later and applied to projections that include laws enacted after they were made. A baseline is a projection of current law, not a forecast of what Congress will do.
The options. Every saving comes from CBO's Options for Reducing the Deficit: 2025 to 2034, published December 2024. CBO estimated each option on its own, relative to its June 2024 baseline projections under the law then in effect. That was before the 2025 reconciliation law, which made most of the 2017 individual tax provisions permanent and changed several spending programs, so many estimates (income tax options especially) would be different under the 2025 law. Options most affected carry a note saying what changed. CBO makes no recommendations; the volume is a menu, not a plan.
The arithmetic. The page uses CBO's own year-by-year estimate for every version of every option. On the February 2026 projections, every estimate is moved two years later than CBO's years. Lower deficits mean less borrowing, so the page also estimates lower interest costs, using the average interest rate implied by CBO's baseline each year. Savings are added together; in reality some options interact (two changes to the same tax base, for example, raise less together than separately), and CBO's estimates do not include effects on economic growth. Where CBO says an estimate does not capture all budgetary effects, the option is flagged. For seven options on annually appropriated spending, CBO's summary figure covers appropriations only; this page also counts the effect on mandatory spending that CBO publishes for them. Results are shown against CBO's projected GDP.
Public opinion. Where a national poll has asked about substantially the same policy, the option shows the share who supported and opposed it, with a link to the poll. 19 of the 76 options have one. Labels follow the gap between support and opposition: popular when support leads by 15 points or more, unpopular when opposition leads by 15 or more, divided in between. Polls ask about policies in different ways and at different times, often not at the size CBO estimated; options marked "similar question" were polled with different wording or a different size of change. Several results come from the University of Maryland's Program for Public Consultation, whose surveys give respondents a short briefing and arguments on both sides before they answer, and some recent ones use opt-in online panels; older polls are shown with their dates. Polls sponsored by groups with a direct stake in the policy are not used. A poll is shown as applying to an option only when it asked about the same group of people and roughly the same policy; where it asked about something narrower (for example, taxes on income over $400,000 rather than everyone's tax rates), it is shown as related polling and not counted. Your plan's summary counts how many of your choices were popular, divided, unpopular or not polled. Polls measure attitudes toward each policy on its own, not toward a whole plan, and they are not an election forecast.
The goals. Holding debt means keeping debt held by the public at its level in the first year of the projections (99.0% of GDP in 2024, or 100.6% in 2026) through the final year, so that it grows no faster than the economy. A deficit of 3% of GDP is a widely cited target; with the economic growth CBO projects, a deficit of that size would slowly bring debt down as a share of GDP, while holding debt steady at about 100% of GDP would take a deficit of roughly 3.7%. Balancing the budget means no deficit in the final year.
Sources
- Congressional Budget Office: An Update to the Budget and Economic Outlook: 2024 to 2034 (Table 1-1)
- Congressional Budget Office: The Budget and Economic Outlook: 2026 to 2036 (Table 1-1)
- Congressional Budget Office: Options for Reducing the Deficit: 2025 to 2034 (each option links to its CBO page)
- Congressional Budget Office: How Changes in Revenues and Outlays Would Affect Debt Service, Deficits, and Debt
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Source data: the Congressional Budget Office (budget projections of June 2024 and February 2026; option estimates of December 2024). How we build our data pages.