Congressional Progressive Caucus Budget Proposal
The budget proposal by the Congressional Progressive Caucus has many positive features.
With a focus on stimulating the economy in 2014, it rapidly lowers the unemployment rate to close to the pre-recession level. It does this by providing some $700 billion for job creation and public investment in 2013 and a total of $2.1 trillion over three years (2013–2015). In contrast, the Obama budget spends $50 billion on infrastructure in 2014 and $128 billion over 10 years.
The CPC budget finds significant savings by using government purchasing power to lower health care costs and by making substantial cuts in non-emergency military spending.
The CPC proposes a number of fair and needed changes in the tax code. The proposal raises tax rates for millionaires, equalizes the tax treatment of capital income and earnings, and restores a more progressive estate tax. It eliminates corporate tax loopholes and enacts a financial transactions tax to reduce destabilizing speculation.
Under this proposal, the deficit would increase in 2014 because of the stimulus. But in the following years, the deficit would decline more rapidly than in some of the other budget proposals.
- For more details, see the analysis of this proposal by Economic Policy Institute.
Ms. Edith Rasell, Ph.D.
Minister for Economic Justice
700 Prospect Ave.