Menu
Share
Share this story
Close X
 
Switch to Desktop Site

Mondale's deficit reduction plan at a glance

To cut the fiscal year 1989 deficit from a projected $263 billion to $86 billion, Democrat Walter Mondale would... RAISE TAXES $85 billion by:

* Defering indexing for families earning more than $25,000.

About these ads

* Eliminating the third year of the Reagan tax cut for married

couples earning more than $60,000 a year and for single persons

earning more than $45,000 a year.

* Adding a 10 percent income-tax surcharge to married couples earning

more than $100,000 and single people earning more than $70,000.

* Adopting a 15 percent minimum tax on corporate economic income.

* Limiting tax shelters, loopholes, and accounting abuses, improving

About these ads

compliance with tax laws, and continuing the postponement of tax

cuts that benefit individuals and businesses.

This tax income would be placed in a deficit-reduction trust fund. CUT SPENDING $54 billion by:

* Holding defense spending to annual increases of 3 to 4

percent after inflation.

* Trimming money for health programs.

* Reducing funds for agriculture programs.

* Running the government more efficiently. SPEND $30 billion on:

* Federal aid to education.

* Restoring Reagan's cuts in the US Environmental Protection

Agency's budget.

No new spending without a new source of revenue to pay for it. SAVE $51 billion through:

* Lower interest payments on the federal debt. EARN $17 billion through economic growth.


Follow Stories Like This
Get the Monitor stories you care about delivered to your inbox.