Reducing Long-Term Deficits
Federal Spending Target of 21% of GDP Is Inappropriate Benchmark
Some have suggested that the President’s Commission on Fiscal Responsibility and Reform should target spending at no more than 21 percent of GDP, the historical average of the last four decades.
Such recommendations, however, fail to take account of fundamental changes in society and government — the aging of the population, substantial increases in health care costs, and new federal responsibilities in areas such as homeland security, education, and prescription drug coverage for seniors. These factors make the expenditure levels of several decades ago inapplicable today.
Targeting federal expenditures at their average level for decades back to 1970 risks draconian cuts in Social Security, Medicare, and an array of other vital federal activities.
More: Federal Budget Analyses
Addressing the Nation's Needs
Letting High-Income Tax Cuts Expire Is Proper Response To Nation’s Short- and Long-Term Challenges
"Letting President Bush’s tax cuts for families making over $250,000 expire as scheduled at the end of 2010, while temporarily redirecting this money to more efficient ways of boosting the economy while it is weak, would help the nation address two key challenges: short-term economic weakness (with nearly one in ten Americans out of work) and unsustainable long-term deficits." Read more
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- Federal Budget Analyses
New From the Center
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Off the Charts Blog Post: In Case You Missed It...
July 30, 2010
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Health Reform Expands Medicaid Coverage For People with Disabilities
July 29, 2010
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“Grandfathering” Rules Strike a Balance for Consumers
July 29, 2010
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July 30 Data Release Will Capture Only a Portion of the Jobs Created or Saved by the Recovery Act
July 29, 2010
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Podcast: Health Reform Law Improves Access to Preventive Care Services
July 27, 2010
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Center in the News
Budget Crunch Hits Atlantic City Hard
NPR
July 29, 2010
In American politics, stupidity is the name of the game
Washington Post
July 29, 2010
In the blogs: Will Seniors Come Around On The Health Care Bill?
The Atlantic's Daily Dish by Andrew Sullivan
July 28, 2010
If the U.S. Budget Were Cupcakes
The Rachel Maddow Show
July 26, 2010
How To Fight The Tax Cut Wars
The New Republic









