The nonpartisan Congressional Budget Office (CBO) released a report last week detailing various options for reducing the federal budget deficit over the next decade.

"The options come from a variety of sources, including legislative proposals, budget proposals from various Administrations, Congressional staff, federal agencies and private groups," explained CBO Director Phillip Swagel. "The options are intended to reflect a range of possibilities and not to set priorities or present a comprehensive list. The inclusion or exclusion of a particular option does not represent endorsement or rejection by CBO."

Earlier this year, the CBO projected that federal budget deficit expected to average $1.9 trillion, or about 5.4% of gross domestic product (GDP), over the next 10 years, well above the 50-year average of 3.7%. That is expected to push the federal debt held by the public — a measure economists use to compare government debt to the size of the economy — from about 99% this year to 122% in 2034 and 166% of GDP in 2054.

The CBO deficit reduction options report including reforms to both mandatory spending for programs like Social Security and Medicare, as well as discretionary spending and even changes to tax policy that would bring in more tax revenue. The report outlines 76 options that range in financial impact from a few billion dollars to over $1 trillion over the next decade.

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The CBO analysis offers 76 policy options to reduce the federal budget deficit. (FOX Business / Photo Illustration / Fox News)

Here are some notable deficit-reduction options from the report, including changes to mandatory and discretionary spending programs and tax policies designed to bring in more revenue.

Mandatory expenses

Establish uniforms Social Security Benefits to 150% of the federal poverty guidelines would reduce spending by $283 billion over 2025-2034, while setting benefits to 125% of the poverty guidelines would reduce spending by $607 billion over that period.

Modify payment to Medicare Advantage plans for health risks could save up to $1.049 trillion from 2025-2034 if a 20% across-the-board payment reduction is implemented. A smaller 8% reduction would lead to savings of $159 billion over the period.

CBO also analyzed the savings from limiting federal funds Medicaid spendinga health care program for low-income Americans funded jointly by the state and federal governments. Implementing an overall spending cap for each state would reduce the deficit by $742 billion over 2025-2034, while a per-participant cap would reduce the deficit by $893 billion over that period.

Reforms to Social Security and Medicare were examined in the CBO analysis. (Kevin Dietsch/Getty Images/Getty Images)

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Discretionary expenses

Reduce Department of Defense annual budget power of about $1 trillion over the next decade in 2025 dollar terms would translate into spending cuts totaling $959 billion in spending cuts from 2025-2034.

CBO's analysis notes achievements in a variety of ways, including reducing the number of active-duty military personnel by about 17% from 2025 to 2034, or reducing ground and air combat units, or de-emphasizing the use of US combat forces and vice versa. rely on allies to provide more of their own defenses.

CBO also analyzed reducing the non-defense discretionary budget. The analysis looked at reducing funding for the two largest areas of the non-defense discretionary budget - grants to state and local governments for transportation program and educational programs – as much as one third.

For transportation, highway and transit grants will be most affected, while education will impact funding for children from low-income households and those with disabilities. A one-third funding cut for those categories would reduce spending by $339 billion over the period 2025-2034.

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CBO analyzed several options for raising additional tax revenue. (Michael Bocchieri/Getty Images/Getty Images)

Tax revenue

Raising all tax rates on ordinary income by one percentage point would result in $1.185 trillion in deficit reduction over the period 2025-2034. Another alternative where income tax rates of two percentage points in only the top four tax brackets would have reduced the deficit by $569 billion over the period.

Eliminate deductions for state and local taxes (SALT) would reduce the deficit by $1.621 trillion from 2025-2034, while eliminating all itemized deductions would bring in $3.423 trillion in tax revenue over that period.

Imposing a new payroll tax of 1% on income would bring in $1.281 trillion over 2025-2034 to reduce the deficit, while a 2% payroll tax would bring in $2.54 trillion over that period.

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Implementing a federal consumption tax in the form of a value-added tax (VAT) could bring in trillions of dollars in tax revenue depending on how it is structured, the CBO found. A 5% VAT applied to a broad base including most goods and services would bring in $3.38 trillion from 2025-2034. If the 5% VAT were applied more narrowly to exclude certain goods and services necessary for subsistence – such as new residential housing, food purchased for consumption, health care and post-secondary education – the total would be $2.18 trillion over that time.

Imposing additional taxes on adjusted gross income (AGI) of taxpayers at various levels is also analyzed. A 1% surtax on AGI over $20,000 for single filers and $40,000 for joint filers would bring in $1.44 trillion in tax revenue over 2025-2034, while a 2% surtax on AGI over $100,000 for single filers and $200,001 would bring in $1.05. trillion in that period.