This paper outlines proposals which should reduce the deficit by more than the goal of $4 trillion, increase growth, reduce the deficit/GDP ratio, and put the country on a more sustainable path. It offers an enunciated set of criteria against which we can judge the framework of shared sacrifice proposed by the Fiscal Commission.
Key findings:
Deļ¬cit reduction is not an end in itself, but a means to other objectives.
Spending that increases debt but simultaneously (over the long run) increases GDP can lower the debt-to-GDP ratio.
Proposals from the Fiscal Commission Chairmen will lead to a less progressive tax system and a more divided society.
Deficit reduction goals must not be achieved on the backs of the less politically powerful or sacrifice the national interest to special interest groups.
Read Working Paper 5: "Principles and Guidelines for Deficit Reduction"