Comeback America, Comeback Revenue

By Joe Sheeran, Communications Director, December 23, 2011 at 11:00 am

I watch way too much C-SPAN. In fact, my only regret about canceling cable two years ago is losing TV access to C-SPAN2 (Senate coverage) and C-SPAN 3.

My fellow C-SPANers have probably seen David Walker, founder of the Comeback America Initiative, a policy organization advocating a nonpartisan fiscal solution to annual deficits and long-term debt. Walker is also the former Comptroller General of the United States and head of the U.S. Government Accountability Office (1998-2008).

The Comeback America plan advocates a more conservative approach than many progressives would like; however, the long-term fiscal framework does contain many key progressive values, especially in the areas of health care, social security, infrastructure spending, reduced defense spending, and revenue.

At least this plan realizes there is a need for a balance fiscal policy that includes revenue. Part of the plan advances a 3:1 cuts-to-temporary revenue increases strategy. It also calls for eliminating credits and other loop holes in favor of lower overall rates.

While top income earners’ marginal tax rate is 35%, they actually pay an 18% effective federal rate with credits and deductions. Comeback America calls for eliminating most deductions and lowering the rate to 25%. (Minnesota’s highest income earners pay a lower effective rate for all state taxes than the bottom 99%, by the way.)

It recommends letting the Bush tax cuts expire, along with a list of fiscal policies that would elicit anger and applause from progressive and conservatives.

While the plan suggests sun-setting (or gradually repealing) the Affordable Care Act (ACA), it advocates some form of universal coverage. Progressive policymakers must nail down exactly what that looks like. The plan acknowledges what many progressives believe to be ACA’s shortcoming: doing little to control rising health care costs. Comeback America also advocates a pay for outcomes system, preventative care and overall wellness.

It calls for competitive bidding for federally-funded prescription drug programs, a smart fiscal move that conservatives have consistently blocked.

One particular compromise that combines progressive values with modest conservative goals is Social Security reform. It’s likely the easiest starting point on the path to overall fiscal health, and would signal that Congress is getting serious about reform.

Comeback America’s plan is not the first progressives would endorse. It drips with conservative code words and does little to ensure wage equity.

Progressives, though, are willing to compromise on many of the tough choices it establishes. Sadly, as Minnesota’s government shutdown and other congressional actions have shown, conservatives aren’t willing to budge at all on revenue, leaving another policy plan to die in cyberspace.

Posted in Fiscal Policy | Related Topics: Government Policy  Federal Government  "No New Taxes"  Revenue Sources