americanprogress.org 1 michael ettlinger vice president, economic policy center for american...
TRANSCRIPT
americanprogress.org
1
Michael Ettlinger
Vice President, Economic PolicyCenter for American Progress
americanprogress.org
4
Budgeting for Growth and Prosperity:A Long-term Plan to Balance the Budget, Grow the Economy, and
Strengthen the Middle Class
Michael Ettlinger, Michael Linden, and Seth Hanlon
http://www.americanprogress.org/issues/2011/05/budgeting_for_growth.html
americanprogress.org
6
Federal health care spending, as a share of GDP, under CBO baseline and CAP plan, 2012-2035
Baseline
CAP
0
2
4
6
8
10
12
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
americanprogress.org
Security spending, as a share of GDP, under CAP plan, 2012-2035
0
1
2
3
4
5
6
20
12
20
14
20
16
20
18
20
20
20
22
20
24
20
26
20
28
20
30
20
32
20
34
Control discretionary spending
Security
• Create a unified security budget
• Cut defense spending by $110 billion in 2015
• Place a cap on security spending that grows at the rate of inflation +1%
7
Security spending, in billions of constant 2010 dollars, under CAP plan, 2012-2035
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
americanprogress.org
• Comprehensive income tax reform
• Reduce greenhouse gas emissions through a price on carbon and a foreign oil import fee
• Modest financial transactions tax
• Other bells and whistles
9
Major Elements of CAP’s revenue plan
americanprogress.org
Fairer
• Itemized deductions (mortgage, charitable) and retirement incentives become credits worth the same to all taxpayers
• Flat 15% marginal rate for taxpayers under $100,000 (singles under $50,000)
• Restore Clinton rate for top earners ($400,000 for couples; $200,000 for singles)
• Temporary 5% millionaires’ surtax until budget is balanced.
• Capital gains rate at 28%; dividends taxed as ordinary income.
• Child Credit expanded from $1,000 to $1,250 with no phase-out and greater refundability. EITC retained in its current, enhanced form
Comprehensive income tax reform
10