Reducing the Budget Deficit: The President’s Fiscal Commission and Other Initiative
"President Obama created a bipartisan fiscal commission tasked with putting the nation on a
sustainable fiscal path. The commission had two main goals: balancing the budget excluding net
interest payments by FY2015 and examining ways to achieve fiscal sustainability over the long
run. The Fiscal Commission’s final report contained recommendations that would 1) reduce the
deficit by a combined $4 trillion by FY2020; 2) lower the budget deficit to 2.3% of GDP by
FY2015; 3) reduce tax rates and tax expenditures; 4) cap revenue collection at 21% of GDP; 5)
ensure the solvency of Social Security; and 6) reduce the federal debt to 60% of GDP by FY2023
and 40% by FY2035. In order to achieve these savings, the plan includes cuts to both security and
non-security discretionary programs, health care cost containment, additional mandatory savings
through cutting agriculture subsidies and the civil service retirement system, Social Security
reforms, comprehensive tax reform, and budget process changes.

This report discusses why the federal government’s fiscal path is unsustainable and provides an
overview of proposals of selected groups that have published detailed recommendations on how
to return the federal budget to a sustainable course..."