[Gvl_M3]

I heard him on Hannity.

The explanation is that it finally does away with the “Base Line Budget” that assumes 7% increase per year.

So by eliminating the built in 7%, and then subtracting 1%, it adds up to big cuts.

If we start with $3.7T and use the two accounting methods we get:

Year 1 $3.663T vs. $3.959T (saving 0.296T)
Year 2 $4.236T vs. $3.636T (saving 0.610T)
Year 7 $3.449T vs. $5.941T (saving 2.493T)
This ads up to a total saving over 7 years of 9.377T

It really adds up fast when you eliminate the baseline budgeting.

I don’t know how it impacts guaranteed paying programs like Social Security, etc.

[casinva]

I’m still trying to learn more about this myself, and your question about how it impacts Social Security led me to this:

http://cookaerospace.newsvine.com/_news/2011/07/28/7187495-the-mackpenny-plan-for-balancing-the-budget-in-a-decade-the-best