Into the environment described below comes the New Green Deal and any number of proposals for new “free” programs; all to be funded by higher taxes on millionaires and billionaires who we are told are not paying their fair share.
I’m in, it all sounds quite simple. First we get the wealthy to solve our exiting fiscal problems, then we get them to fund all the new promises.
As CBO explains, high and rising debt will slow wage growth, raise interest payments, reduce fiscal space, and increase the risk of an eventual fiscal crisis. Action must be taken to avoid these consequences.
The first step to prevent these outcomes is to stop making the fiscal situation worse. Policymakers must offset the cost of any new initiatives as well as any extensions of expiring tax cuts and any increase in statutory spending caps.
Beyond that, lawmakers must secure Social Security and other trust funds headed toward insolvency, control the growth of health care costs, increase revenue, reduce spending, and pursue a pro-growth economic agenda. Without ultimately including all of these elements, it would be incredibly difficult to truly fix our nation’s budgetary challenges and put the country on sound fiscal footing.
Source: Committee for a Responsible Federal Budget