Targeted Deficit Reduction Act of 2010 - Amends the Congressional Budget Act of 1974 to require each budget resolution for FY2011-FY2020 to include reconciliation directives to reduce the deficit to achieve the following goals: (1) primary budget balance by FY2015; (2) full budget balance by FY2020; and (3) a debt-to-gross domestic product (GDP) ratio of 60% by FY2020.
Requires any committee that receives such reconciliation directives to be ordered to report a reconciliation bill within 45 calendar days after adoption of such budget resolution.
Requires the Director of the Congressional Budget Office (CBO), on or before February 15 of each year through 2019, to report to the congressional budget committees a target deficit reduction, for the fiscal year commencing on October 1 of that year, necessary to achieve the applicable goals and the anticipated glide path for each such fiscal year until FY2020.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5008 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 5008
To amend the Congressional Budget Act of 1974 to require annual
progress toward meeting fiscally responsible 5- and 10-year deficit and
debt targets.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 13, 2010
Ms. Markey of Colorado (for herself, Mr. Baca, Mr. Berry, Mr. Boren,
Mr. Boyd, Mr. Bright, Mr. Childers, Mr. Cooper, Mr. Davis of Tennessee,
Ms. Giffords, Ms. Herseth Sandlin, Mr. Hill, Mr. Kratovil, Mr.
Marshall, Mr. Matheson, Mr. McIntyre, Mr. Melancon, Mr. Minnick, Mr.
Murphy of New York, Mr. Nye, Mr. Ross, Mr. Schiff, Mr. Schrader, Mr.
Shuler, Mr. Space, Mr. Tanner, and Mr. Wilson of Ohio) introduced the
following bill; which was referred to the Committee on Rules, and in
addition to the Committee on the Budget, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To amend the Congressional Budget Act of 1974 to require annual
progress toward meeting fiscally responsible 5- and 10-year deficit and
debt targets.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Targeted Deficit Reduction Act of
2010''.
SEC. 2. FINDINGS.
Congress finds that--
(1) the Federal deficit in 2009 was more than $1.4
trillion, or 9.9 percent of the United States gross domestic
product (GDP);
(2) our current deficits are unsustainable: under realistic
assumptions, the level of public debt will double over the next
ten years;
(3) the Federal debt held by the public at the end of 2009,
as estimated by the Congressional Budget Office (CBO), was
approximately $7.5 trillion or 53 percent of GDP;
(4) in a conservative CBO estimate assuming tax cuts will
expire by 2012, the debt will climb to $15 trillion by the end
of 2020, or 67 percent of GDP;
(5) other analysts, which take account many factors that
the CBO does not utilize, estimate that by 2020 publicly held
debt will be closer to 80 percent of GDP;
(6) in 2009, payment of interest on the national debt was
the fourth largest item in the Federal budget, reducing funds
available to vital programs such as education, homeland
security, and veterans affairs;
(7) United States debt held by foreign individuals and
nations whose interests are not always compatible with United
States interests has grown dramatically: at the close of 2009
overseas ownership of United States securities totaled nearly
$3.6 trillion and nearly $800 billion was held by China;
(8) creditors' willingness to lend to the United States is
decreasing, which greatly restricts the ability of the Nation
to respond to crises, both foreign and domestic;
(9) a growing debt directly increases inflation, further
eroding the power of the United States dollar abroad and
weakening the economy;
(10) succeeding generations will face greatly lower
standards of living because of the fiscal future created by
prolonged deficit spending;
(11) international trade has made the United States economy
the largest in the world, but tightened credit and weakened
international standing will reduce the Nation's ability to
compete in a global marketplace and will restrict the growth of
the economy;
(12) the United States supplies the International Monetary
Fund (IMF) with a great deal of its funding and is a leader in
formulating IMF economic policies that are promoted through the
world, yet the United States is dangerously close to exceeding
the IMF guideline limit of 60 percent debt-to-GDP;
(13) without a significant commitment to rein in our
deficits and debt, our economic and national security will be
threatened;
(14) the Federal budget should be developed each year
toward a target of attaining a maximum ratio of 60 percent
debt-to-GDP and achieving complete budget balance within ten
years (by fiscal year 2020);
(15) an interim goal, the Federal budget should achieve
primary balance, in which spending equals revenue excluding the
debt service, within five years (by fiscal year 2015);
(16) the reconciliation process is currently an optional
procedure under the Congressional Budget and Impoundment
Control Act of 1974 (Public Law 93-344), as amended) designed
to enhance the ability of Congress to reduce the deficit; and
(17) this Act creates achievable, long-term goals and
imbeds a process for annual progress toward that goal in the
Congressional budgetary process.
SEC. 3. TARGETED DEFICIT AND DEBT REDUCTION.
(a) In General.--Title III of the Congressional Budget Act of 1974
is amended by adding at the end the following new section:
``targeted deficit and debt reduction
``Sec. 316. (a) Content of Concurrent Resolution on the Budget.--
In addition to the items required to be included in a concurrent
resolution on the budget under section 301(a), the concurrent
resolutions on the budget for fiscal years 2011 through 2020 shall each
include, as applicable, reconciliation directives described in section
310 to reduce the deficit to achieve the goals set forth in subsection
(b).
``(b) Goals To Be Achieved Through Reconciliation.--
``(1) Primary budget balance by fiscal year 2015.
``(2) Full budget balance by fiscal year 2020.
``(3) A debt-to-GDP ratio of 60 percent by fiscal year
2020.
Any committee that receives reconciliation directives to achieve any of
these goals shall be ordered to report a reconciliation bill not later
than 45 calendar days after the concurrent resolution on the budget
containing such directives is agreed to.
``(c) CBO Report.--On or before February 15 of each year through
2019, the Director of the Congressional Budget Office shall submit to
the Committees on the Budget of the House of Representatives and the
Senate a report for the fiscal year commencing on October 1 of that
year containing the target deficit reduction for that fiscal year
necessary to achieve the applicable goals set forth in subsection (b)
and the anticipated glide path for each such fiscal year until fiscal
year 2020. In determining the necessary deficit reduction required for
each fiscal year through fiscal year 2020, the Director shall endeavor
to have such deficit reduction as uniform as possible for each such
fiscal year. Each such report shall also include the estimated deficit,
debt, and GDP for each fiscal year though fiscal year 2020.
``(d) Definitions.--For purposes of this section--
``(1) the term `primary budget balance' means outlays equal
receipts during a fiscal year, not counting outlays for debt
service payments;
``(2) the term `full budget balance' means outlays equal
receipts during a fiscal year;
``(3) the term `GDP' means the gross domestic product of
the United States; and
``(4) the term `debt-to-GDP ratio' means, for a fiscal
year, the quantitative relationship between the face amount of
obligations described in section 3101(b) of title 31, United
States Code, estimated to be outstanding at the end of that
year and the estimated GDP for that year.''.
(b) Conforming Amendment.--The table of contents set forth in
section l(b) of the Congressional Budget and Impoundment Control Act of
1974 is amended by inserting after the item relating to section 315 the
following new item:
``Sec. 316. Targeted deficit and debt reduction.''.
<all>
Introduced in House
Introduced in House
Referred to House Rules
Referred to the Committee on Rules, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to House Budget
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