Averting a Fiscal Crisis

Why America Needs Comprehensive Fiscal Reforms Now

Deficit Projections
(Percent of GDP)
12% 10% 8% 6%

1992-2012 Average Deficit: 2.9% 2012-2022 Average Current Policy Deficit: 4.7%

4%
2% 0% -2% -4%

Current Policy

Current Law

Note: Estimates based on CRFB Realistic Baseline.

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Gap Between Revenue and Spending

(Percent of GDP)
26% 24% 22% 20% 18% 16% 14% 12% 10% 2000 2002 2004 2006 2008 2010 Current Law Spending CRFB Realistic Spending 2012 2014 2016 2018 2020 Current Law Revenues CRFB Realistic Revenues 2022
Avg. Historical Revenues (1972-2011): 17.9% Avg. Historical Spending (1972-2011): 21.0% Actual Projected

Note: Estimates based on CRFB Realistic Baseline.

2

Components of Revenue and Spending

Revenues and Financing Outlays

Interest Non- 7% Defense 7% Borrowing 32% Individual Income Tax 27%

Medicare 15% Medicaid & Other Health 8% Social Security 23%

2012

Defense 21%

Other 6%

Corporate Tax 5% Social Insurance Taxes 23%

Other Mandatory 18%

Total Revenues = $2.456 Trillion Total Financing = $3.627 Trillion

Total Outlays = $3.627 Trillion

Debt Projections
(Percent of GDP)
400% 350%

300%
250% 200% 150% 100% 50% 0% -50%

Realistic Projections 2010: 63% 2025: 92% 2040: 147% 2080: 384%

What the Debt Will Realistically Look Like

Current Law

Note: Estimates based on CRFB Realistic Baseline.

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Growth in Mandatory Spending

(Percent of GDP)
25%

Actual
20%

Projected
Historical Average

15%
10% 5% 0% 1972 1982 1992 2002 2012 2022 2032 2042 2052 2062 2072 2082 Social Security Health Care Other Entitlements Revenue

Consequences of Debt
Crowding Out of private sector
investment, leading to slower economic growth

Higher Interest Payments displacing other

government priorities and investments

Intergenerational Inequity as future

generations pay for current government spending

Unsustainable Promises of high spending

and low taxes

Uncertain Environment for businesses to

invest and households to plan

Eventual Fiscal Crisis if changes are not

made
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The Risk of Fiscal Crisis

Rising Debt increases the likelihood of a fiscal crisis during which investors would lose confidence in the government's ability to manage its budget and the government would lose its ability to borrow at affordable rates.
-Doug Elmendorf, Director of the Congressional Budget Office

Our national debt is our biggest national security threat.

-Admiral Mike Mullen (ret.), Chairman of the Joint Chiefs of Staff

One way or another, fiscal adjustments to stabilize the federal budget must occur *if we dont act in advance+ the needed fiscal adjustments will be a rapid and painful response to a looming or actual fiscal crisis.
-Ben Bernanke, Chairman of the Federal Reserve

Debt Drivers
Short-Term Long-Term

Economic Crisis
(lost revenue and increased spending on safety net programs like Food Stamps)

Rapid Health Care Cost Growth

(causing Medicare and Medicaid costs to rise)

Economic Response
(stimulus spending/tax breaks and financial sector rescue policies)

Population Aging
(causing Social Security and Medicare costs to rise, and revenues to fall)
What Costs Growing Interest the Debt Will Realistically Look Like

Tax Cuts
(in 2001, 2003, and 2010)

War Spending
(in Iraq and Afghanistan)

(from continued debt accumulation) (to meet the costs of funding government)

Insufficient Revenue

How Did We Get Here?

Drivers of the Debt Since 2001

Increases in Debt:
Technical & Economic Changes: 27%
Tax Cuts: 27% Spending Increases: 41% Other Means of Financing: 6%

Note: Estimates from The Pew Charitable Trusts based on CBO data.
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Growing Entitlement Spending

Federal Spending and Revenues (Percent of GDP)
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

Actual Average Historical Revenues Revenues

Projected

Interest

Health Care Social Security Other Spending

Note: Estimates based on CRFB Realistic Baseline.

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Why Is Entitlement Spending Growing?

Drivers of Entitlement Spending Growth (Percent of GDP)
26% 24% 22% 20% 18% 16% 14% 12% 10% 8%

56% 36% 64%

Excess Health Care Cost Growth

Aging

44%

Source: CBO Long-term Budget Outlook, 2011.

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Why Is Federal Health Spending Increasing?

The Population Is Aging due to increased life
expectancy and retirement of the baby boom generation, adding more beneficiaries to Medicare and Medicaid

Per Beneficiary Costs Are Growing faster than the

economy in both the public and private sector. Causes of this excess cost growth include:
Americans Are Unhealthy when compared to
populations in similar economies

Americans Are Wealthy and Willing to Pay More

Fragmentation and Complexity among insurers,
providers, and consumers make normal market competition difficult

Incentives Are Backwards by hiding true costs of care

through insurance and by hiding costs of insurance enrollment through employer sponsorship, incentivizing overspending
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Health Care Spending by Country

Percent of GDP (2008)
18% 16% 14%

12%
10% 8% 6% 4% 2% 0%

36% 64%

Public

Private

Source: 2008 Data from the Organization for Economic Cooperation and Development.
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Number of Workers for Every Social Security Retiree is Falling

1950 1960 2012 2035

36%

16:1

5:1

64%

3:1

2:1

Source: 2012 Social Security Trustees Report.

14

Living Longer, Retiring Earlier

90 85 80 75 70 65
Normal Retirement Age Average Age of Retirement

60 55
50 45 40
Life Expectancy

Early Retirement Age

Source: Social Security Administration and U.S. Census Bureau.

15

Looming Social Security Insolvency

Social Security Costs and Revenues (Percent of Taxable Payroll)
20% Payable Benefits 18% 16% 14% 12% 10% 8% 6% Revenues Scheduled Benefits

Source: 2011 Social Security Trustees Report.

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Interest as a Share of the Budget

(Percent of GDP)
2010 2030 2050

Primary Spending 94%

Interest 6%

Primary Spending 81%

Interest 19%

Primary Spending 73%

Interest 27%

Total Spending = 24% of GDP

Total Spending = 27% of GDP

Total Spending = 34% of GDP

Note: Estimates based on CRFB Realistic Projections.

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Insufficient Revenue
Unpaid for Tax Cuts in 2001, 2003, and
2010 lowered revenue collection without making corresponding spending cuts or tax increases to offset the budgetary effect

Spending in the Tax Code Costs Over $1

Trillion annually in lost revenues through so called "tax expenditures," which make the tax code more complicated, less efficient, and force higher rates

18

Excessive Spending Through the Tax Code (Tax Expenditures)

TaxIn order to stabilize Debtof Primary the economy by 2021: Expenditures Expenditures as a Percent at 60% of Large Tax Spending if Included in the Budget and Their 2011 Costs (billions)
Employer Health Insurance Exclusion Mortgage Interest Deduction
Defense Discretionary 16%

$174 $89

Tax Expenditures 24%

401(k)s and IRAs

Earned Income Tax Credit

$77
$62

Non-Defense Discretionary 15% Health Spending 18% Social Secutity 16% Other Mandatory 12%

Special Rates for Capital Gains and Dividends State & Local Tax Deduction
Charitable Deduction Child Tax Credit

$61

$57
$49 $45

Source: Joint Committee on Taxation. Source: Office of Management and Budget.

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How Much Do We Need to Save?

In order to stabilize debt at 60% of the economy by 2022:
(2012-2022 Savings) Current Policy Current Policy Current Law Baseline Assuming Baseline Assuming Baseline Assuming Upper-Income Tax All Tax Cuts No Trigger Savings Cuts Expire* Continued*

Debt in 2021 w/ No Savings (% GDP)

Required Savings to Stabilize Debt at 60%

67%

81%

86%

$1.7 Trillion

$5.1 Trillion

$6.4 Trillion

*Estimates based on CRFB Realistic Baseline.

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How Much Do We Need to Save? (contd)

In order to stabilize debt at 65% of the economy by 2022:
(2012-2022 Savings) Current Policy Current Policy Current Law Baseline Assuming Baseline Assuming Baseline Assuming Upper-Income Tax All Tax Cuts No Trigger Savings Cuts Expire* Continued*

Debt in 2021 w/ No Savings (% GDP)

Required Savings to Stabilize Debt at 65%

67%

81%

86%

$0.4 Trillion

$3.8 Trillion

$5.2 Trillion

*Estimates based on CRFB Realistic Baseline.

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How Much Do We Need to Save? (contd)

In order to stabilize debt at 70% of the economy by 2022:
(2012-2022 Savings. Negative numbers reflect increase in deficits.) Current Policy Current Policy Current Law Baseline Assuming Baseline Assuming Baseline Assuming Upper-Income Tax All Tax Cuts No Trigger Savings Cuts Expire* Continued*

Debt in 2021 w/ No Savings (% GDP)

Required Savings to Stabilize Debt at 70%

67%

81%

86%

-$0.8 Trillion

$2.6 Trillion

$4.0 Trillion

*Estimates based on CRFB Realistic Baseline.

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How Much Do We Need to Save? (contd)

So even if lawmakers were to stabilize debt at 70% of the economy in 2021a level higher than the internationally recognized threshold of 60%they would have to enact at least $2.8 trillion in savings beyond the $920 billion enacted in the Budget Control Act, compared to realistic assumptions of future debt. That calls for a Go Big approach to debt reduction.

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We Cant Inflate or Grow Our Way Out

Inflation
An unexpected increase in inflation
could temporarily reduce the real value of debt and federal interest payments to investors

Growth
Strong economic growth is a necessary
but not sufficient condition for debt reduction

Many spending programs grow as the

economy does, and would outpace revenue growth

However, higher inflation would prompt

investors to demand higher interest payments, increasing the costs of financing new debt

Social Security payments would

increase as wages and, thus, benefits grew over time

Higher inflation would also push up

spending for all inflation-indexed programs, including Social Security, food stamps, military pensions, veterans benefits.

Health care spending would grow

even faster, given that costs continually grow notably faster than the overall economy

The levels of growth needed to

significantly reduce medium-term debts would be way above historical norms
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Debt Reduction and Economic Growth

Real Output Growth (Percent)
4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 CBO Baseline Growth Medium Output Effect Small Output Effect Large Output Effect

CBO studied the economic impact of an illustrative $2.4 trillion debt reduction plan and found that real output would be between 0.6% and 1.4% higher, depending on the magnitude of the effects.

*Estimates from CBO, The Macroeconomic and Budgetary Effects of an Illustrative Policy for Reducing the Federal Budget Deficit.
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How to Reduce the Deficit

Domestic Discretionary Cuts
Defense Spending Cuts Health Care Cost Containment Social Security Reform Other Spending Cuts

Tax Reform and Tax Expenditure

Cuts

Budget Process Reform

26

Go Small: Lots of Pain for Little Gain

A smaller package would offer some
improvement to our fiscal situation, but it would not offer the benefits of a declining debt path

The public would see a package of tough

choices and a debt burden that continues to grow. In essence, it would deliver political pain with not so much gain

Would leave in place considerable policy

uncertainty, affecting businesses and markets

A smaller package and an incremental

approach to debt reduction would not offer the political tradeoffs necessary to solve our fiscal challenges

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What Could Go Small Look Like?

Possible Policy Changes

Savings

Without addressing
health care reforms or revenues, it will be very difficult to achieve significant savings

Government-Wide
Discretionary Health Care Other Mandatory Social Security Revenues Net Interest Total

$250 billion from chained CPI

$100-200 billion from modestly slower growth in BCA caps Negligible savings $150-250 billion from farm subsidies, federal civilian and military retirement and benefits, Fannie and Freddie, and others Negligible savings Negligible savings $100 billion $600-800 billion

And even then, there is

no guarantee that significant savings in other areas of the budget could be agreed on

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Adding Serious Entitlement Reforms and Revenues Pushes You into Go Big
Democrats will only agree to serious entitlement reforms if there are revenues Republicans will only agree to revenues in the context of comprehensive tax reform Democrats will only agree to a comprehensive tax reform that replaces the Bush tax cuts if it raises at least the $800 billion they would get if President Obama vetoes extension of upper income tax cuts Republicans will not agree to revenues anywhere near that amount without health savings that go beyond the amount proposed by the President
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Advantages of Go Big
Debt stabilized and falling as a share of
the economy later in the decade, and all the benefits associated with a declining debt burden:
Less crowding out of private sector

investment Stronger confidence in businesses and markets Greater certainty and stability Stronger economy over the long-term Lower interest payments and increased fiscal space Intergenerational equity Reduced or eliminated risk of fiscal crisis

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Advantages of Go Big (contd)

Increased chances of enacting a
comprehensive debt solution of at least $3 - $4 trillion in savings:
Political trade offs necessary to address
entitlement growth and revenues Shared sacrifice in Go Big approach Realize the gains of debt reduction by stabilizing and reducing the debt, and not just making difficult decisions that solve only part of the problem

Restore Americas faith in the political

system

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The Announcement Effect

Just announcing the adoption of a debt reduction
plan can provide a boost in confidence, aiding the recovery

Prominent lawmakers, government officials,

economists, and experts have reiterated the benefits of the announcement effect, including:

Ben Bernanke, Fed Chairman Erskine Bowles and Alan Simpson The International Monetary Fund Glenn Hubbard, former Chair of the Presidents CEA Mark Zandi, Chief Economist, Moodys Analytics Michael Bloomberg, Mayor of New York City Alan Blinder, former Fed Vice Chairman Larry Summers, former Director, NEC Various editorial boards and magazines, including the Washington Post, Financial Times, and The Economist

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Note: For more information on the announcement effect, see CRFB at http://crfb.org/blogs/announcing-announcement-effect-club

Go Big: Shared Sacrifice

Expanding the size and scope of a package can promote a sense of shared
sacrifice on behalf of the American public and key interest groups, making it more likely that they would accept changes if everyone was contributing to the solution.

An incremental approach would allow advocates for parts of the budget to argue
that they are bearing an unfair burden. A Go Big approach which achieves savings in all parts of the budget neutralizes that argument.

In a recent Washington Post op-ed, Fiscal Commission co-chairs Erskine Bowles

and Alan Simpson highlighted this lesson from the Fiscal Commission deliberations: The more comprehensive we made it, the easier our job became. The tougher our proposal, the more people came aboard. Commission members were willing to take on their sacred cows and fight special interests but only if they saw others doing the same and if what they were voting for solved the countrys problems.

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What Could Go Really Big Look Like?

Including serious entitlement reforms and revenues pushes the overall savings well above the $1.2 trillion mandate
Possible Policy Changes Government-Wide
Discretionary Health Care Other Mandatory Social Security Revenues Net Interest Total

$600 - $800 Billion Plan $250 billion

$100- 200 billion Negligible savings $150 - $250 billion Negligible savings Negligible savings $100 billion $600 - $800 billion

$3 Trillion Plan $250 billion $300 billion $650 billion $350 billion $150 billion $850 billion $450 billion $3 trillion

$4 Trillion Plan $250 billion $400 billion $900 billion $350 billion $300 billion $1.2 trillion $600 billion $4 trillion

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Note: $4 trillion plan is a more ambitious version of the types of reforms in the $2.8 trillion plan.

The Bowles-Simpson Fiscal Commission Plan

Discretionary Spending
Cuts to defense and non-defense programs,
totaling an additional $400 billion over ten years [on top of the savings already enacted].

Social Security
Progressive benefit changes, retirement
age increase, tax increase for high earners totaling $300 billion.

Health Care Spending

Cuts to providers, lawyers, drug companies, &
beneficiaries totaling $400 billion.

Other Mandatory Programs

Reforms to farm, civilian/military retirement, &
other programs saving $290 billion.

Tax Reform and Revenue

Comprehensive reform to lower tax rates,
broaden the base, and raise $1.2 trillion.
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The Bowles-Simpson Fiscal Commission Plan

(Deficits as Percent of GDP)
10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0%

36

Illustrative Tax Rates

2012 Rates, Expiration of the Tax Cuts, and Fiscal Commissions Illustrative Plan
Corporate Rate 35% 35% 26%

Bottom Rates Current Rates for 2012 Scheduled Rates for 2013 Eliminate All Tax Expenditures Keep Child Tax Credit and EITC Fiscal Commissions Illustrative Tax Plan 10% 15% 8% 15%

Middle Rates 25% 28% 14% 28% 31%

Top Rates 33% 36% 23% 35% 39.6%

9% 12%

15% 22%

24% 28%

26% 28%

Fiscal Commissions illustrative tax plan would reduce or eliminate most tax expenditures and use the savings to reduce tax rates and reduce the deficit.

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Whats in the Fiscal Cliff?

At the end of 2012, the following is scheduled to occur:

All of the 2001/2003/2010 tax cuts will expire at once The sequester will immediately cut defense by 10%, non-defense
discretionary by 8%, and other spending across-the-board The payroll tax holiday and extended unemployment benefits will expire The AMT will hit 30 million taxpayers instead of 4 million All the tax extenders will expire Physicians will see a 30% cut in their Medicare payments Tax increases from the Affordable Care Act will begin The country will once again hit the debt celling

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Components of the Fiscal Cliff

The Sequester
Enacted in the 2011 BCA to pressure the Super Committee to enact a
plan, the sequester would cut spending across the board in January 2013.
% Reduction in 2013 (Budget Authority)
Defense Spending Non-Defense Disc. Spending Medicare Other Non-Exempt Spending Interest Total Cuts 10% 8% 2% 8% N/A +$100 billion

2012-2022 Cuts (Budget Authority)

$550 billion $360 billion $90 billion $45 billion $190 billion $1,230 billion

Source: Congressional Budget Office. Numbers are rounded.

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Components of the Fiscal Cliff

Other Policies Set to Activate or Expire
Jobs Measures
2% payroll tax holiday Extended duration for unemployment benefits

Annual Doc Fixes

Affordable Care Act Tax Increases

0.9% increase in HI tax for higher earners and applying the full 3.8% tax to net
investment income 2.3% tax on medical devices Other measures

Various Tax Extenders

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R&E tax credit Alcohol fuel tax credit Subpart F for active financing income Other extenders

How Big Is the Fiscal Cliff?

Policy 2001/2003/2010 Income and Estate Tax Cuts AMT Patches (w/ Tax Cut Interactions) 2013 Fiscal Impact $110 billion 2013-2022 Fiscal Impact $2.8 trillion

$125 billion
$65 billion $10 billion $115 billion $30 billion $25 billion ~$500 billion ~2%

$1.7 trillion
$980 billion $270 billion $150 billion $455 billion $420 billion $8.1 trillion N/A

Sequester Doc Fixes

Jobs Measures Various Tax Extenders Taxes from the Affordable Care Act Total Fiscal Impact Total Economic Impact (% GDP)

Note: Congressional Budget Office estimates and CRFB calculations. 2013-2022 estimates include interest.
41

Budgetary and Economic Impact

Billions of Dollars

36% 64%

Source: Congressional Budget Office estimates and rough CRFB calculations.

42

Short-Term Economic Impact of the Fiscal Cliff

Expiring/activating measures will create a fiscal shock of
about 4 percent of GDP, which could take about 2 percent out of the economy in the short-term and increase unemployment by over 1 percent

Under current law, CBO projects negative growth in the first

quarter of 2013 and negligible growth in the second quarter
Current Law vs. Current Policy Difference in Real GDP Level Difference in Real GDP Growth (Q4 to Q4) 2013 -2.1% -1.6% +1.1% 2022 +1.0% +0.2% n/a

Difference in Unemployment Rate

Source: Congressional Budget Office.

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Long-Term Economic Impact of the Fiscal Cliff

The Fiscal Cliff could improve the long-term, BUT:

Savings in the Fiscal Cliff will not deal with the long-term debt
drivers growing health and retirement costs

Revenue will come largely from higher marginal rates, which

will reduce incentives to work, save, and invest

Spending cuts will come from mindless across-the-board cuts

instead of cuts to low-priority and anti-growth spending

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Lawmakers Face a Fiscal Cliff and a Mountain of Debt

WORST CASE: A Mountain of Debt
If lawmakers waive or extend policies at the end of the year, they could add more than $7.5 trillion to the debt over the next ten years, compared to current law.

BAD CASE: A Fiscal Cliff

If lawmakers allow all policy expirations and the sequester to proceed as scheduled, the economy could take a 2 percent hit over 2013-2014, while not addressing entitlement spending growth or fundamental tax reform.

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Is There a Smart Path Forward?

Instead of a Fiscal Cliff or Mountain of Debt, we should enact a comprehensive and thoughtful plan which would:

Go Big
A plan must stabilize and reduce the debt relative to the economy A go big plan would make bipartisan compromise more likely by
allowing for the necessary tradeoffs

Go Smart
Replace mindless, abrupt deficit reduction with thoughtful changes
that reform the tax code and cut low-priority spending

Go Long
Enact gradual reforms that address the long-term costs of growing
entitlement spending

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Is There a Smart Path Forward?

Deficit Projections as a Percent of GDP
9% 8% 7% 6%

5%
4% 3% 2% 1% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Realistic Debt CBO Current Law Illustrative Plan

Note: Illustrative plan loosely based on Fiscal Commission savings. Current policy based on CRFB Realistic Baseline.
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Benefits of Replacing the Fiscal Cliff with a Go Big Plan

Achieves long-term growth without short-term contraction
Avoids both a double-dip recession and a potential
downgrade from credit rating agencies

Allows for sensible policy decisions to make the tax code

more competitive, reform entitlement programs, and eliminate wasteful spending

Reduces market and public uncertainty over future tax and

spending policies

48

What Savings Have Lawmakers Enacted So Far?

(Billions of Dollars through 2021)
$2,000 Simpson-Bowles Recommendations $1,500 Enacted Savings

$1,000

$500

$0

Note: Estimates based on realistic budget projections.

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What Would the President and Governor Romney Do?

Debt Projections (Percent of GDP)
100% 90% 80%

70%
60% 50% 40% 30% 20% 10% 0% 2012 2016 2021

Romney w/o credit for unspecified base broadening

Current Policy Romney Obama

Note: Estimates based on CBO and CRFB calculations.

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Its Time for a Fiscal Reform Plan

Reasons to Enact a Plan Sooner Rather than Later
Size of Adjustment to Close 25-year Fiscal Gap, Depending on Start Year (Percent of GDP)

Allows for gradual phase in Improves generational fairness Gives taxpayers businesses,
and entitlement beneficiaries time to plan

2013

4.8%

2015

5.2%

Creates announcement
effect to improve growth

2020

6.8%

Reduces size of necessary

adjustment

2025

9.7%

0%

2%

4%

6%

8%

10%

12%

Source: Congressional Budget Office

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Its Time for a Fiscal Reform PlanNow

We Cant Wait Until After the Election
Every month and year that passes, the debt grows larger and larger and
the solutions become more difficult

Elections can take policy options off the table and back candidates into
positions that make bipartisan solutions more difficult

Addressing the fiscal situation as soon as possible would make

governing easier not harder after the election

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Who Supports Go Big?

Calls for a $4+ Trillion, Bipartisan Solution to the Debt
45 Members of the Senate 102 Members of the House of Representatives 200 Business Groups, including the Chamber of Commerce, National
Association of Manufacturers, and Business Roundtable

Other groups: Partnership for New York City, American Business

Conference, National Conference of State Legislatures

60+ former government officials, business leaders, and experts Editorial boards and other outside experts Countless concerned citizens

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Principles of Fiscal Responsibility

For the 2012 Campaign
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
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Make Deficit Reduction a Top Priority

Propose Specific Fiscal Targets Recommend Specific Policies to Achieve the Targets Do No Harm

Use Honest Numbers and Avoid Budget Gimmicks

Do Not Perpetuate Budget Myths Do Not Attack Someone Elses Plan Without Putting Forward an Alternative Refrain from Pledges That Take Policies Off the Table

Propose Specific Solution for Social Security, Health Programs, and the Tax Code
Offer Solutions for Temporary and Expiring Policies Encourage Congress to Come Up with a Budget Plan as Quickly as Possible Remain Open to Bipartisan Compromise

The Time For Action Is Now

If not addressed, burgeoning deficits will eventually lead to a fiscal crisis, at which point the bond markets will force decisions upon us. If we do not act soon to reassure the markets, the risk of a crisis will increase, and the options available to avert or remedy the crisis will both narrow and become more stringent.
-Erskine Bowles and Sen. Alan Simpson, Former co-chairs of the National Commission on Fiscal Responsibility and Reform

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Current Bipartisan Efforts

Fix the Debt

The Fix the Debt Campaign 100+ Members of the House of Representatives

45+ Senators
Hundreds of business leaders, associations, and other experts
calling for a broad, bipartisan plan to stabilize and reduce debt

Thousands of concerned citizens

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Useful Resources
The Committee for a Responsible Federal Budget http://crfb.org http://www.fixthedebt.org Policy Papers: Between a Mountain of Debt and a Fiscal Cliff Primary Numbers: The GOP Candidates Going Big Could Improve the Chances of Success Slideshow on Our Fiscal Challenges: Averting a Fiscal Crisis Congressional Budget Office July 16, 2011 report: The Macroeconomic and Budgetary Effects of an Illustrative Policy for Reducing the Federal Budget Deficit

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