1Center for American Progress | Budgeting for Growth and Prosperity
Budgeting for Growth and Prosperity
A Long-term Plan from the Center for American Progressto Balance the Budget, Grow the Economy, and Strengthenthe Middle Class
Michael Ettlinger, Michael Linden, and Seth Hanlon May 2011
The highlights
• Achieves“primarybalance”by2015,withthefederalbudgetintheblackexceptforpaymentsonthenationaldebt•Hitsfullandpermanentbalanceby2030,andreducesthedebttojustover40percentofgrossdomesticproductby2035•Deliverstwo-thirdsofthedecitreductionfromspendingcuts,andone-thirdfromrevenueincreases•Istheonlylong-termplanforsustainedbalancedbudgetsthatinvestsinthemiddleclassratherthanaskingthemtobearthebruntofdecitreduction
Our plan makes room for crucial investments, protects middle-classservices, and fights poverty
•Makesroomforsubstantialnewinvestmentsinalllevelsofeducation,renewableandcleanenergytechnologies,transportationandinfrastructure,andbasicscienticresearchanddevelopmentevenwhilebalancingthebudget—investinganannualaverageofabout$70billionabovecurrentlevels•Includessubstantial,targetedbooststosuccessfulantipovertyprogramsthatcutthepovertyrateinhalfby2030
Our plan controls health care costs for everyone, not just those in thepublic programs
•Strengthensexistingcost-containmentmeasuresintheAordableCareAct•Fullypaysforapermanent“DocFix”forMedicare•Buildsinacost-containment“failsafe”toslowthegrowthofhealthcarecostsacrosstheentireeconomywhileensuringthequalityofcare