Bipartisan Policy Center Budget Report Supported by Business Group
Washington, D.C. November 17, 2010 – The business-led Committee for Economic Development‘s Subcommittee on Fiscal Health said today that it supports the approach taken by the Debt Reduction Task Force of the Bipartisan Policy Center (BPC) in their report, Restoring America’s Future (released today). CED has a 68-year history of working to ensure the long-term financial health of the country through responsible federal spending.
“We applaud the Bipartisan Policy Center for taking a very hard look at the options that this country has for reducing the national debt. It is clear that we cannot continue to push this problem down the road and leave a real problem for future generations The BPC report illustrates clearly what choices and tradeoffs must be made if we are to build a sound financial future,” said Joseph Kasputys, CED Co-Chair, and Founder and Chairman, IHS Global Insight.
CED’s Trustees note several important aspects of Restoring America’s Future that are philosophically in line with past CED work on the federal budget:
- Stabilizing the debt at a sustainable level of 60 percent of GDP by 2020.
- Reforming the tax system to a simple, pro-growth model that broadens the base, reduces rates, and raises revenue to reduce the debt.
- Reducing healthcare cost growth from its current unsustainable rate through cost-responsible choice among competing private insurance plans.
- Making Social Security sound and sustainable for the foreseeable future, with protection for lower-wage workers, especially those in physically demanding work.
- Establishing an effective, transparent budget process that will cap and then restrain spending growth, to maintain control of the debt through 2020 and beyond.
“Without a serious plan to reduce the federal budget deficit, the United States will be spending $1 trillion, or 17 percent of all federal spending, just for interest payments in 2020. We cannot let the situation reach such a crisis point. This plan from the Bipartisan Policy Center, like the proposal of Co-Chairs Bowles and Simpson to the President’s Deficit Commission, shows us that there is a way to grow the economy, create jobs, and reduce our national debt. It won’t be easy, but we cannot delay any longer,” said W. Bowman Cutter, CED Trustee and Managing Director, The Cedars Capital Partners.
CED Senior Vice President and Director of Research Joseph Minarik is a member of the BPC’s Debt Reduction Task Force, which is chaired by former Senator Pete Domenici and the Former Director of the Office of Management and Budget, Dr. Alice Rivlin.