A principled comprehensive deficit reduction proposal
A new version of "Measuring Up: The Case for the Chained CPI"
“Addressing our fiscal challenges will require many tough choices and policy changes – but switching to the chained CPI represents neither.”
In order to locate resources for needed investments in the context of deficit reduction, the federal government should create a bipartisan “Cut-to-Invest Commission” (CIC) to identify $200 billion over 10 years in budget savings.
As the Joint Select Committee on Deficit Reduction (“Super Committee”) deliberates over how to reduce deficits and debt, it is important that they address growing Medicare costs, and that they do so with a special focus on “bending” the health care cost curve.
It was with this principle in mind – that the burden must be spread equally and that Washington must lead by example – that the Bowles-Simpson recommended that federal civil service and military retirement programs be re-evaluated by a federal workforce entitlement task force that would make recommendations for reforms to reduce the costs of those programs to taxpayers.
The Super Committee already has its work cut out for it in its quest to recommend $1.2 -- $1.5 trillion in savings. Fortunately, Go Big can boost their chances of success while also setting the country on a path to a sustainable fiscal future.
This report outlines MOT's re-estimates of the Fiscal Commission proposal, judged against an updated baseline.
Fiscal Commission senior staffers Paul Weinstein Jr. and Marc Goldwein give a detailed account of how and why the Modified Zero Plan for tax reform, as promoted by the Commission, is the best format for a new cleaner, fairer, more efficient tax code.