The PREP Plan: Paying for Reform and Extension Policies

    Report: Deficit Falls to $483 Billion, but Debt Continues to Rise

    McCrery-Pomeroy SSDI Solutions Iniatitive

    Budget Simulator: Stabilize the Debt

The PREP Plan: Paying for Reform and Extension Policies

 In coming months, Congress and the President must decide how to address “Sustainable Growth Rate” (SGR) cuts and 55 “tax extenders” that expired at the end of last year. Policymakers could also use these moments to help put the debt on a sustainable long-term path. CRFB's Paying for Reform and Extension Policies (PREP) Plan represents one such approach.

Report: Deficit Falls to $483 Billion, but Debt Continues to Rise

 CRFB updated a new paper summarizing the Treasury Department's statement of the final FY 2014 budget deficit. According to the Treasury, the deficit fell to $483 billion, which is good news. But, both deficits and debt are projected to rise over the next decade and  beyond, with trillion-dollar deficits returning by 2025.

 

McCrery-Pomeroy SSDI Solutions Iniatitive
Former Congressmen Jim McCrery (R-LA) and Earl Pomeroy (D-ND) launched the McCrery-Pomeroy SSDI Solutions Iniatitive, a bipartisan effort to identify potential improvements to the Social Security Disability Insurance (SSDI) program. The goal of the initiative is to provide policymakers with options to improve the SSDI program in advance of the its 2016 projected insolvency date.  
Budget Simulator: Stabilize the Debt

 

The long-term debt of the United States is rising to unprecedented – and unsustainable – levels. Everyone has an opinion on what should be done about America's finances. Here's your chance to try out your ideas. Use our budget simulator to "stabilize the debt." Read the blog.

 

 

 

CRFB's Blog: The Bottom Line

Congressional negotiators are reportedly nearing a deal to address the year-end tax extenders while adding $500 billion to the debt. By reinstating, making permanent, and in some cases significantly expanding a number of tax provisions, this deal would give away half of the revenue raised from fiscal cliff deal or about half the savings generated from the sequester, undoing some of the progress that has been made toward long-term deficit reduction. Horse trading one permanent provision for another and adding other "sweeteners" reportedly under consideration could push the price tag even higher.

The National Academy of Social Insurance has done a real service by conducting “trade-off analyses” to better understand how Americans would fix a Social Security program quickly headed toward insolvency. By forcing Americans to fully understand and weigh various options, rather than just asking about them in isolation, a trade-off analysis has the power to better simulate the tough choices that lawmakers will face in adjusting the program.

Recent press articles report that policymakers are negotiating a deal to accompany a temporary restoration of most of the 55 expired tax extenders with a permanent extension of a few provisions. The most commonly mentioned provision is the Research & Experimentation (R&E) credit, which would add $77 billion to the deficit if made permanent. Making the R&E credit permanent without offsets would be a costly and fiscally irresponsible mistake, but not as bad as what some reports suggest policy makers might do: expand the R&E credit and more than double its cost to $156 billion.

According to the latest CBO Budget Options report, adopting the chained CPI – an inflation index that most economists believe is a more accurate measure of inflation than the current CPI – would reduce the deficit by $332 billion through 2024, or $375 billion including interest. Those savings include $150 billion of revenue, $116 billion from Social Security, $66 billion from other mandatory spending, and $45 of interest savings.

 
June 4, 2013
CRFB's latest interactive tool "The Reformer" is a handy game that allows users to design their own Social Security plan. Users can select from a wide variety of benefit and revenue changes to make the system sustainably solvent. The tool then shows the effect on the program's finances and benefit and tax levels.
September 27, 2011
If you've ever wanted to design your own corporate tax reform, now you can with our new Interactive Tax Reform Calculator. There is no question that the U.S. corporate tax system is badly in need of reform, and leaders in both parties have been pursuing this goal.

CRFB Projects

The McCrery-Pomeroy SSDI Solutions Initiative is dedicated to identifying practical improvements to the Social Security Disability Insurance (SSDI) program. The SSDI Solutions Initiative is calling for academic papers on innovative ways to make the SSDI program better serve workers with disabilities, those who pay into the program, and the economy as a whole.

The Campaign to Fix the Debt is an unprecedented and bipartisan coalition that seeks to mobilize members of business, government, and policy communities to urge Congress and the President to enact a comprehensive debt deal.

The Moment of Truth (MOT) project is a non-profit, non-partisan effort that seeks to foster honest discussion about the nation’s fiscal challenges, the difficult choices that must be made to solve them, and the potential for bipartisan compromise that can move the debate forward and set our country on a sustainable path.