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.
* 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
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
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.