The Peterson Foundation’s Solutions Initiative brought together six think tanks — two conservative, two liberal and two centrist — and challenged each to present a detailed plan to solve our fiscal crisis-in-waiting, using the same uniform assumptions. Because everyone had to begin with the same set of facts, and everyone had to war-game the same budget scenario over the coming decade and beyond, the typical demagoguery that surrounds budget battles was rendered moot. The end result is a pure, apples-to-apples comparison of six visions for America.
All of the groups that took part are to be commended for sticking their necks out. But the liberal groups’ proposals demonstrate why there was a risk in doing so. In order to balance the budget over the long term, they both require far higher taxes than America has ever paid before. By 2035, the Center for American Progress wants the government to take 23.8 percent of the economy right off the top. The Economic Policy Institute sets an even more ambitious revenue projection of 24.1 percent of gross domestic product. Note that in our nation’s entire history — including the times when high earners paid punitive tax rates above 50 percent — total federal government receipts have never exceeded 21 percent of GDP (the level in 1944).
It is noteworthy that despite planning for huge tax increases and draconian cuts to the defense budget, the EPI plan actually increases the national debt over the next 25 years. The Heritage Foundation plan, on the other hand, provides for the fastest debt reduction, despite making far more realistic assumptions about the level of future revenues (18.5 percent of GDP).
This returns us to the question of why Senate Majority Leader Harry Reid, D-Nev., has said that Democrats would be “foolish” to present a budget. When multiple plans are compared fairly, side by side, it becomes clear that the Left’s vision for America bears little resemblance to the nation we know today.
Of course, if you rely on people like John McCain or other GOP establishment politicians to sell things like this, it too often ends up sounding like, “yeah, if I weren’t running against him I’d definitely be voting for Obama. He’s historic — and just look at the crease in his trousers!”
You’re never supposed to use an empty word like interesting but that’s exactly what this is. Interesting.
I’d really like to see the details.
Given the fact that it seems to be very difficult if not impossible to get tax revenue over 21% of GDP, not matter how hard they try, why do they keep trying to raise taxes?
I guess that’s a dumb question. It’s because progressives and reality rarely intersect.
Talk about a rigged result! The Economic Policy Institute and the Center for American Progress are both Soros funded, if that means anything.
This can’t be stressed enough, and underscored by the fact that the Democrats never wrote a budget for last year in order to avoid the political heat for revealing what their plans were…
Transparency!, THE MOST ETHICAL CONGRESS EVAH!
Speaking of budgets: WaPo Buries 97-0 Rejection of Obama Budget in Story Focused on Senate Rejection of Ryan Plan
Zero Senators support Obama’s budget, and…crickets.
I humbly suggest the voters of the United States make sure the Democrats are in position to offer and pass a budget in the future…
I’d really like to see the details.
The Peterson Foundation study can be found here. Look for the “Solutions Initiative.”
You gotta love the EPI/Demos/Century Foundation plan. Highest taxes of the six, and they still manage to grow the deficit.
Smartest guys in the room, that bunch.
LTC, I’m fairly sure you meant “NOT EVER in ANY position”….
Thanks, Squid.
But jeff, the right just loves to bite the heads off of those adorable Easter bunnies. The Democrats must be not only right, but re-elected to save those bunnies, and grandmother too.
#8 – Indeed – I THOUGHT it read “never, ever be in a position to”… when I hit ‘Submit Comment’. Gah.