Complex sentence: This proposed budget was threatening to literally scuttle what was left of the Navy (including all the carriers) reducing it to escort and cargo ships, transfer the Marines to the Army and all aviation assets to the Air Force.
Split into simpler sentences: This proposed budget was threatening to literally scuttle what was left of the Navy (all the carriers) reducing it to escort and cargo ships. Transfer the Marines to the Army and all aviation assets to the Air Force.