FEDERAL BUDGET

I.O.U.S.A.

CED has strongly supported fiscal responsibility throughout 66 years of work on federal budget issues. Over the past two years, CED leaders, including Vice President and Director of Research Joseph Minarik, have taken part in the national “Fiscal Wake-Up Tour” with former U.S. Comptroller General David Walker. Mr. Walker is featured in the new documentary film, “I.O.U.S.A.” opening in movie theaters on August 21, 2008. We recommend “I.O.U.S.A.” to anyone interested in the long-term economic health of the United States.

Reuters has called I.O.U.S.A. an “’Inconvenient Truth’ for the U.S. economy.” The film spells out how America is on the brink, financially -- and how the government must mend its spendthrift ways or risk an economic disaster of epic proportions. Director and Sundance veteran Patrick Creadon (“Wordplay”) helps demystify the nation's financial policies as he follows former U.S. Comptroller General Dave Walker and Concord Coalition executive director Bob Bixby across the nation on their Fiscal Wake-Up Tour. The film is a tapestry of archival footage, timely economic data, and candid interviews with key financial experts and policymakers including Warren Buffett, Alan Greenspan, Robert Rubin and Paul O’Neill. Pointedly topical and consummately nonpartisan, I.O.U.S.A. drives home the message that the only time for America's financial future is now. For more information about the film, visit the official movie website; to buy tickets for I.O.U.S.A. LIVE, an exclusive one-night event featuring Walker, Warren Buffett, and other financial leaders on August 21, visit Fathom Events.

You may also be interested in the article on I.O.U.S.A. which appeared in the Economist.

A New Tax Framework: A Blueprint for Averting a Fiscal Crisis

Press Release

Executive Summary

Full Report

CED Trustee and Chair of the CED Subcommittee on Tax Reform, W. Bowman Cutter, provided the keynote address and outlined the CED tax reform plan.

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Continuing its leadership in economic and fiscal policy, CED released a new policy statement, A New Tax Framework: A Blueprint for Averting a Fiscal Crisis. The new report presents fiscally responsible recommendations for overhauling the federal tax system and raising the revenues needed to combat mounting federal budget deficits and the fiscal demands presented by an aging society.

The CED proposal calls for a new hybrid federal tax system featuring a phased-in 10 percent Value-Added Tax (VAT) to supplement a reformed and streamlined federal income tax. The report also provides guidance for eliminating, reducing and consolidating special tax preferences. In addition, the report calls for the elimination of the Alternative Minimum Tax (AMT) and reform of the Estate Tax.

The CED tax plan was released at a forum at the National Press Club in Washington, DC on September 27th.

CED Joins With Other Organizations to Promote Fiscal Discipline

CED has joined with four other organizations in releasing a joint statement calling on the President and Congress to reestablish pay-as-you go rules for all tax cuts and mandatory spending increases. Such an action is needed to rein in the federal budget deficit. CED is joined in the statement by the Center on Budget and Policy Priorities, The Concord Coalition, The Committee for a Responsible Federal Budget, and Centrists.org.

To view the joint statement, click here.
 

CED Releases Two New Papers on the Federal Budget and Social Security Reform

As decisions are made in Washington that will have considerable impact on the long-term financial standing of the United States, CED has issued two new reports to inform policymakers and the public about the critical choices, and their consequences, facing the U.S. As Congress deliberates on spending priorities for FY 2006 and beyond, considers making recent tax cuts permanent, and debates various options for Social Security reform, CED has issued a new policy statement, The Emerging Budget Crisis: Urgent Fiscal Choices. The new report presents a sober examination of the large, long-term federal budget deficits facing this country. The report also strongly warns that, with the retirement of the baby-boom generation a few short years away, policymakers can afford to wait no longer to make the difficult decisions necessary to prepare the country for the economic consequences of an aging population. Prudent action is needed now on all budgetary fronts to avoid a financial debacle -- with significant implications for important issues such as taxes, health care, and Social Security.

Social Security reform continues to be the top domestic issue on the national agenda. Congress must recognize the fiscal situation in considering the options to strengthening the finances of this vital program. CED has updated and restated the comprehensive Social Security reform package detailed in the 1997 CED policy statement, Fixing Social Security. The new report, Fixing Social Security: A CED Policy Update, presents CED's plan for strengthening and modernizing the system. The proposal was prepared by a distinguished task force of business leaders and academic experts. The CED plan acknowledges that some changes must be made to Social Security to prepare it for the challenges that lie ahead, and to make it more attractive to a new generation of workers; but CED also recognizes that the essential safety net provided by Social Security must be preserved. CED recommends creating a two-tier system that would both restore the fiscal solvency of Social Security and convince young contributors who perceive a low and diminishing return on their contributions that Social Security will provide a meaningful benefit to them. The first tier would return the current basic system to long-term fiscal solvency through relatively modest adjustments. The second tier would "add-on" a new system of individually controlled personal retirement accounts to increase the rate of return for younger workers.

The Emerging Budget Crisis: Urgent Fiscal Choices
Press Release  |  Executive Summary  |  Full Report

Fixing Social Security: A CED Policy Update
Full Report

For more information, please contact Amy Morse at amy.morse@ced.org, or 202-296-5866 ext. 29.
 

Restoring Fiscal Responsibility

Alice Rivlin (left), founding Director of the Congressional Budget Office and Sr. Fellow at The Brookings Institution, Peter Peterson (center), former Secretary of Commerce, CED Trustee, and President of The Concord Coalition, listen as former Senator Bob Kerrey (right), President of The New School University makes a point at the Restoring Fiscal Responsibility Forum in New York City.

CED Trustee and former Secretary of Commerce Peter Peterson and CED President Charles Kolb meet at the New York City Forum.

On January 12^th, The Committee for Economic Development (CED), The Concord Coalition and The Brookings Institution hosted a breakfast forum in New York City on the budget outlook for FY 2006 and the impact of rising long-term federal deficits. The forum, Restoring Fiscal Responsibility: Challenges for the New Congress, featured three leading experts on economic policy; Bob Kerrey, former U.S. Senator and President of The New School University, Alice M. Rivlin, founding Director, Congressional Budget Office, Senior Fellow, Brookings Institution, and Peter G. Peterson, CED Trustee, former Secretary of Commerce and President of The Concord Coalition. The forum was moderated by Geoffrey Boisi, Vice Chairman (Ret.), JP MorganChase. All three panelists warned that the size of the federal budget deficit threatens future U.S. economic growth and outlined the political challenges Congress and the Administration will face in attempting comprehensive Social Security and Medicare reform in 2005.

CED, The Brookings Institution, and The Concord Coalition continue to work to improve the federal budget process and raise awareness of the long-term dangers of ignoring the federal budget deficit. For more information on CED's federal budget research, click here. For more information on The Brookings Institution, click here: www.brookings.edu, for the Concord Coalition: www.concordcoalition.org.
 

The Emerging Budget Crisis: Urgent Fiscal Choices

As decisions are made in Washington that will have considerable impact on the long-term financial standing of the United States, CED has issued two new reports to inform policymakers and the public about the critical choices, and their consequences, facing the U.S. As Congress deliberates on spending priorities for FY 2006 and beyond, considers making recent tax cuts permanent, and debates various options for Social Security reform, CED has issued a new policy statement, The Emerging Budget Crisis: Urgent Fiscal Choices. The new report presents a sober examination of the large, long-term federal budget deficits facing this country. The report also strongly warns that, with the retirement of the baby-boom generation a few short years away, policymakers can afford to wait no longer to make the difficult decisions necessary to prepare the country for the economic consequences of an aging population. Prudent action is needed now on all budgetary fronts to avoid a financial debacle -- with significant implications for important issues such as taxes, health care, and Social Security.

The Emerging Budget Crisis: Urgent Fiscal Choices
Press Release  |  Executive Summary  |  Full Report
 

CED Joins Budget Watchdog Groups in Backing "Pay-As-You-Go" Rules

CED President Charles Kolb presents case for PAYGO budget rules at April 20th news conference.

CED joined 3 respected public policy groups at a Capitol Hill news conference focused on bringing back the "pay-as-you-go" rules for this year's federal budget. President Charles Kolb represented CED and emphasized how "pay-as-you-go" (PAYGO) rules for the budget process would hold back deficit spending. Three other federal budget experts: Robert Bixby, Executive Director of the Concord Coalition; Robert Greenstein, Executive Director of the Center on Budget and Policy Priorities; and Maya MacGuineas, Executive Director of the Committee for a Responsible Federal Budget, also spoke on the need for PAYGO at this time. Materials from the April 20th news conference can be found by clicking on the links below. Also see CED's 2003 report, Exploding Deficits, Declining Growth: The Federal Budget and the Aging of America.

Joint Statement on PAYGO | Press Release | Federal Budget Deficit Charts
 

CED Issues New Deficit Warning

CED Trustee William W. Lewis addresses the Deficit Policy Briefing on the impact rising of federal deficits on business activity as (l-r) Robert Rubin and Robert Reischauer look on. 

CED, the Concord Coalition and the Center on Budget and Policy Priorities held a joint policy briefing on Monday, September 29 at the National Press Club to discuss the rapidly deteriorating budget outlook and the policy, economic, and generational impact of rising long-term federal deficits. CED Trustee William W. Lewis, Director Emeritus, McKinsey Global Institute, represented CED and outlined the many fiscal problems poised by the looming retirement of the baby boom generation and the concerns of American business leaders. Lewis was joined by an impressive bi-partisan group of economic experts; Robert E. Rubin, former Treasury Secretary and now a Director and Chairman of the Executive Committee of Citigroup, Inc., Warren B. Rudman, former Republican Senator from New Hampshire and Founding Co-Chairman of the Concord Coalition, Peter G. Peterson, former Secretary of Commerce and President of the Concord Coalition, and Robert D. Reischauer, former director of the Congressional Budget Office, current President of the Urban Institute. The panel discussed the rapidly deteriorating budget outlook and the policy, economic, and generational impact of rising long-term federal deficits. The three sponsoring groups released a joint statement based on the latest data and developments. To begin the briefing, CED President Charles E.M. Kolb presented an updated look at the CED report, Exploding Deficits, Declining Growth: The Federal Budget and the Aging of America. The report, released in March of this year, urges the Administration and Congress to "wage war on many fronts" against our nation's deteriorating fiscal situation and set aside any effort to stimulate the economy through tax reductions at this time.

For more information, contact Morgan Broman at (202) 296-5860 ext. 14, or morgan.broman@ced.org

Press Release | Joint Statement

On January 20th, CED President Charles Kolb provided testimony in front of the Senate Democratic Policy Committee hearing examining the impact of federal budget deficits on the economy. Click HERE to read the transcript.
 

Exploding Deficits, Declining Growth

Peter G. Peterson, President, The Concord Coalition, Former U.S. Secretary of Commerce & CED Trustee, speaking at the March 5th CED/Concord Coalition press conference.

CED Trustee Josh S. Weston, former CEO of Automatic Data Processing, Inc., speaking at the release of "Exploding Deficits, Declining Growth."

On March 5, 2003, CED released Exploding Deficits, Declining Growth: The Federal Budget and the Aging of America. The report urges the Administration and Congress to "wage war on many fronts" against our nation's deteriorating fiscal situation and set aside any effort to stimulate the economy through tax reductions at this time.

CED also joined The Concord Coalition (www.concordcoalition.org) in issuing a joint statement on federal deficits and the long-term danger they pose to the country at a press conference at the National Press Club in Washington, DC. Peter G. Peterson, President of the Concord Coalition, former U.S. Secretary of Commerce, and CED Trustee joined Josh S. Weston, former CEO of Automatic Data Processing, Inc., and CED Trustee in calling for responsible budget planning that balances current and future priorities. Both groups believe that current tax cut proposals should be viewed in that context.

Contact Amy Morse for more information at 202-296-5860 or amy.morse@ced.org

Full Report | Press Release  |  Joint Statement | Joint Press Release