People’s the Only Honest Budget

In three recent posts, I have mentioned and stated support for the People’s Budget, produced by the 75 Democrats on the House Progressive Caucus.  It has some unique features.  It actually  cuts the deficit, and it does not do so on the backs of poor and middle class Americans.  Here are some of the details.

The 75-member House Progressive Caucus has put out its own budget to counter Paul Ryan’s Medicare-gutting GOP plan.

This is more than a fantasy document. It’s sound policy. The conservative Economist magazine has called the budget "courageous." As a conversation-starter, it shows that the path out of our debt and deficit quagmire is not as steep as most imagine, and that getting America’s fiscal house in order isn’t incompatible with making critical investments in jobs and infrastructure.

The budget has more of what Americans say they want — new taxes on the rich and cuts to defense — than either the GOP’s or the president’s budget. And it has none of what Americans say they hate: changes to the social compact that’s guided America from the days of the New Deal and the Great Society. 

The Progressive budget would slash $5.6 trillion in deficits on the way to generating a small surplus in 2021—reaching a balanced budget two decades in advance of Paul Ryan’s plan.

Here, some highlights:

 

New Investments (Cost: $1.7 trillion)

• Job-creating public investments, largely infrastructure – highways, public transportation, high-speed rail; $1.5 trillion spent in the first five years to combat high unemployment

 

Defense Cuts (Savings: $2.3 trillion)

• Cuts off funding for the Iraq and Afghanistan wars… [more – click through]

 

Increased Taxes (New revenue: $2.8 trillion)

• Revokes the Bush tax cuts — for everybody — in 2012, with the exception of a few, targeted tax credits/fixes for married couples and families with children. Extension of Bush tax cuts for the wealthiest — a highlight of the lame-duck budget deal — is rescinded

• Taxes capital gains and dividends as normal income.  Ends preferential tax treatment of investment income… [more – click through]

 

Safety Net (New revenue: $1.2 trillion)

• Raises the maximum income subject to Social Security payroll taxes to $170,000

 

Health Reforms (Savings: $308 billion)

• Creates a ‘public option’ in health care exchanges… [more – click through]

 

Interest Savings (savings: $856.3 billion) [emphasis original]

Inserted from <Rolling Stone>

It actually accomplishes more than I listed, but I did not want to take the entire article.  Click the Rolling Stone link above to see the other items.

Note that, even though Social Security is not a budget item, the People’s Budget makes is solvent by adjusting the cap upwards.

This is the budget that does not kill the poor to give the rich more.

Tell your Representative and Senators.