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The Only Real Democratic Budget: Why Progressives Have the Answer to What the American Public Wants

Posted: 04/11/11 11:42 AM ET

Budgets are more than collections of numbers. They are a statement of our values. The Congressional Progressive Caucus Budget is a reflection of the values and priorities of America's working families. The "People's Budget" charts a path that keeps America exceptional in the 21st century, while addressing the most pressing problems facing the nation today. Our Budget eliminates the deficit, stabilizes the debt, puts Americans back to work, and restores our economic competiveness.

The CPC Budget does this by listening to the American people. In poll after poll, the public is telling us that they want to preserve Social Security, Medicare and Medicaid, make higher education more affordable, expand job-training programs, cut taxes burdening the middle class, subsidize affordable housing and assist those struggling to prevent foreclosures. The majority of America, furthermore, thinks cuts to Social Security, Medicare and Medicaid, K-12 education, heating assistance to low-income families, student loans, unemployment insurance, scientific and medical research, are completely unacceptable.

In contrast, Americans find a progressive tax policy very acceptable. The overwhelming majority of America supports additional taxes on millionaires and billionaires, eliminating unnecessary weapons systems, eliminating tax credits for the oil and gas industries, phasing out Bush tax cuts, and eliminating subsidies for new nuclear power plants. Poll after poll gives voice to what Americans are asking of us.

Our Budget listens to what the American people are telling us. It does all of the above in a fiscally responsible way that dramatically reduces our borrowing from banks and foreign governments and ensures our long-term economic competitiveness. It does all of the above recognizing that in order to compete we need every American to be productive, and in order to be productive, we need to raise the skill level of every American while making sure that basic needs of every working family are met. It does all of the above, while remaining rooted in fairness, recognizing that America works only when everyone has an opportunity to make it in America.

Our Budget Eliminates the Deficit by 2021: The CPC budget eliminates the deficit in a way that does not devastate what Americans want preserved, specifically, Medicare, Medicaid and Social Security. Instead of eroding America's hard-earned retirement plan and social safety net, our budget targets the true drivers of deficits in the next decade: the Bush Tax Cuts, the wars overseas, and the causes and effects of the recent recession. By implementing a fair tax code, by building a resilient American economy, and by bringing our troops home, we achieve a budget surplus of over $30 billion by 2021 and we end up with a debt that is less than 65% of our GDP. This is what sustainability looks like.

Our Budget Puts America Back to Work & Restores America's Competitiveness: The CPC budget rebuilds America and makes it competitive again. We put America back to work. We rebuild our roads and bridges, ensuring that those who use it help pay for it. We rebuild our dams and waterways with seed money for shipping systems that can compete with the rest of the world. We rebuild our education system by training more and better teachers, restoring schools, helping each student graduate, and supporting community colleges. This is what competitiveness looks like.

Our Budget's Fair Tax System: The CPC budget implements a fair tax system, based on the American notion that fairness and equality are integral to our society. Our budget restores fairness to a system that unfairly benefitted the richest few while hurting the majority of America. Our budget heeds America's call to end the Bush Tax Cuts and the estate tax and create fair tax brackets for millionaires and billionaires -while maintaining credits for the middle class and for students. It ensures that the banks which wrecked our economy pay a modest financial responsibility fee and that exotic trading, by Wall Street traders who gambled away America's savings, is levied a tax. It guarantees that hedge fund managers (and those who use them) do not get special treatment, by taxing capital gains and dividends as ordinary income. It eliminates charity to oil companies making record profits from prices paid at the pump by the American people, given that it is unfair that the American people must also give these oil companies billions of dollars in handouts. Finally, our budget taxes US corporate income as it is earned, in much the same way Americans are taxed. This is what fairness looks like.

Our Budget Brings Our Troops Home: The CPC budget responsibly ends our wars, currently paid for by American taxpayer dollars we do not have. We end these wars, not simply to save massive amounts of money or because this is what the majority of America is polling in favor of, but because these wars are making America less safe, are reducing America's standing in the world, and are doing nothing to reduce America's burgeoning energy security crisis. The CPC budget offers a real solution to these fiscal, diplomatic and energy crises - leaving America more secure, both here and abroad. The CPC budget also ensures that our country's defense spending does not continue to contribute significantly to our current fiscal burden - a trend we reverse by ending the wars and realigning conventional and strategic forces, resulting in $2.3 trillion worth of savings. This is what security looks like.

Our Budget's Bottom Line (Over 10 year Window)

• Deficit reduction of $5.6 trillion
• Primary spending cuts of $869 billion
• Net interest savings of $856 billion
• Total spending cuts: $1.7 trillion
• Revenue increase of $3.9 trillion
• Public investment of $1.7 trillion
• Budget surplus of $30.7 billion in 2021, debt at 64.1% of GDP.


US Representative Michael Honda is a member of the House Budget Committee and the Congressional Progressive Caucus. Follow Rep Honda on Facebook and Twitter. US Representative Raul Grijalva is co-chair of the Congressional Progressive Caucus. Follow Rep Grijalva on Facebook and Twitter.

 

Follow Rep. Mike Honda on Twitter: www.twitter.com/repmikehonda

 
 
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08:52 AM on 05/07/2011
Projecting out 7 - 10 years doesn't inspire much confidence in the numbers. But besides that, the "values"of this budget repeat the same mistakes that got us in this fiscal mess in the first place. Any budget that doesn't address the twisted "values" of our overseas military debacles is DOA. If we want to restore our economy we need to be PRODUCTIVE. Keep our resources and $$ home and we will thrive.
06:30 PM on 04/26/2011
I can rally 100% around this budget. What is the CPC going to do to push this forward? What can we voters and taxpayers that pay attention do to help push this forward? We're willing to help!
12:24 PM on 04/14/2011
Revenue increases of average of 400 billion a year for ten years???? Are you kidding? Maybe by printing more funny money, perhaps.

Just a reminder - Any dollar that goes to pay taxes both encourages the government to spend even more and also reduces by one dollar investing or spending on consumer goods (which create or maintain jobs).

In addition, taxing corporations more results in their passing on the expenses to the consumer. This is just a back door tax increase on the people. It will also have the effect of more corporations moving offshore.

The main thrust of deficit reduction should be spending cuts. Some tax increases are inevitable, in order to keep funding entitlements, but the benefits derived from these entitlements will need to be modified as well.
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bettermsnbc
Independently minded
07:38 AM on 04/25/2011
nice try to spin this towards Conservatism. After having lived most of my life under Conservative rule, I have learned a few things. The first among them is that Conservatives usually lie. The second is that they are willing to defund Social Safety Nets, AT ALL COSTS. The reason is that most Republicans are more about Personal Responsibility. They tend not to understand the Social Responsibility aspects of Society.
Recently there was a study done as to why this is. The fact is that Conservatives are unable to Utilize Critical Thinking Skills the same as Liberals do. For a fact, Liberals think in terms of Nuances, while Conservatives think in terms of fear. That brings me to the next thing. Why would anyone ever want people that live in fear govern over them?
06:31 PM on 04/26/2011
Well-stated!
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tepeters
08:28 AM on 04/12/2011
Okay how do we get this to be the blue print for the Democratic Budget-everybody copy this to your representatives. Also, urge them to vote against the recent deal- after looking at the detail what is going to be cut I am appauled at what the administration agreed to.
07:32 AM on 04/12/2011
Proposing something reasonable is not enough. One also needs to get the message out. Mr. Honda, Mr. Grijalva, how are you going to make the American people listen to you?

Posting on HuffPost is all good and well, but not going to be enough.
11:09 PM on 04/11/2011
Oh my God! Why all this truth telling? Here is what you said, in bullet form:

* Preserve Social Security, Medicare and Medicaid,
* Make higher education more affordable,
* Expand job-training programs,
* Cut taxes burdening the **middle** class,
* Subsidize affordable housing and **assist** those struggling to **prevent foreclosures**.
* Cuts to Social Security, Medicare and Medicaid, K-12 education, heating assistance to low-income families, student loans, unemployment insurance, scientific and medical research, are completely unacceptable.

Then you go on to say "The overwhelming majority of America:

* Supports additional taxes on millionaires and billionaires
* Eliminating unnecessary weapons systems,
* Eliminating tax credits for the oil and gas industries,
* Phasing out Bush tax cuts, and
* Eliminating subsidies for new nuclear power plants.

Wow! It seems Democratic representatives have gotten the memo: you need to advocate ***openly*** for progressive values, before President Obama sells the country, and yourselves, down the river with his endless preemptive capitulations to the right wing in this country.

I would like to see more of this. To quote President Obama, "Enough!"
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edejan
10:53 PM on 04/11/2011
Kudos to Reps. Grijalva and Honda! Here is a strong budget that can be used as a progressive platform. What can we do to promote public attention to this budget? To make sure it get consideration in the budget process? Reps. Grijalva and Honda, please continue your progressive initiatives and help us by finding and pushing forward a candidate for 2012!
Chironomid
To read is human; to comprehend divine
09:28 PM on 04/11/2011
Now THAT'S a budget... hear hear!
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jimtodd
Unrepentant child of '60s
09:24 PM on 04/11/2011
The CPC budget doesn't matter because the CPC doesn't matter. They are 99% Democrats and 1% progressives, if the Party doesn't mind.
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bettermsnbc
Independently minded
07:46 AM on 04/25/2011
yes, I agree that there aren't enough Liberals and Progressives within the Democratic Party. Please, if you are not Liberal, leave my party and start your own.
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samtee
Shankapotomus.
08:23 PM on 04/11/2011
The American people don't want anything the progressives have to offer.
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RacerX
E pluribus unum
09:51 PM on 04/11/2011
Yeah you tell 'em! - uh well except for that tax the rich part, that seems pretty popular.

http://www.reuters.com/article/2011/01/03/us-usa-taxes-poll-idUSTRE7022AK20110103
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RacerX
E pluribus unum
09:58 PM on 04/11/2011
Hold up, hold up...I forgot military spending. Shoot, was that on the progressive list?
http://www.reuters.com/article/2011/03/09/us-usa-budget-poll-idUSTRE7286DW20110309
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ausmth
All things merge into one and a river runs through
07:58 PM on 04/11/2011
I would like to hear from the enlightened progressives on just how much income should be paid in taxes. Is there a level that's too high? I don't think anyone should have to pay more than 40% in fed, state, sales tax, property tax, personal property tax, excise tax or any other tax. What's too much?
08:28 PM on 04/11/2011
Progressive tax rates. But first you have to exempt the first $35,000 (2x for couples) and then tax what's left starting at 20% and ending at 70% for top earners. These are the rates from the booming '60s, and they will work now.
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ausmth
All things merge into one and a river runs through
08:41 PM on 04/11/2011
Then why would anyone keep their money in the US? Invest offshore and never bring the earnings back to the us.
Genders
Love, Tolerance, Enlightenment
04:05 AM on 04/12/2011
Really, a billionaire shouldn't pay more? Could they have made those billions on desert island? is anybody really worth a billion dollars a year? Automation and tech concentrates wealth. Are you ok with the 1000 richest families owning everything will the rest of the world starves in desperation?

"When economic power became concentrated in a few hands, then political power flowed to those possessors and away from the citizens, ultimately resulting in an oligarchy or tyranny." John Adams

"As riches increase and accumulate in few hands . . . the tendency of things will be to depart from the republican standard." Alexander Hamilton

The USA had 90% top income tax rates when it became the greater economy in the world. I would hope 50% was enough, let's see. And that would need to include capital gains. We should also tax accumulated wealth, real estate progressively.
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SVPincalif
Practice random acts of kindness
05:54 PM on 04/11/2011
Are we bribing Corporations to stay in this country? I can't think of another reason to give them so much power and say in things. It's like a Robert Ludlum novel, except it's real.
Aesculus glabra
My micro-bio is empty
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10:12 PM on 04/11/2011
SVPincalif
The corporations are using blackmail. They threaten to leave if they don't get their way. What a criminal mess.

Now that SCOTUS has deemed corporations 'people', perhaps they should be treated as such and do jail time for their behaviour. (being shut down and unable to function would serve as 'jail' time.)
05:35 PM on 04/11/2011
What a fraud budget, you want to tax even more and spend more for the sake of what? You do nothing to slow government growth you also ignore the growing interest on the national debt. Guess what if you tax a mega millionaire or a billionaire they can afford to move their money else where at a moment notice so any tax system liberal want will always produce less revenue then they claim when it is passed. You want to use the tax code as a stick and carrot to control people and economic behaviors.

You claim America is about fairness then why not make every working America pay the something in federal in taxes? Why should one portion of thee population be stuck with paying over 40% of the income taxes. The left will never give any viable ideas because you refuse to do anything about social security and medicade, or the national debt.
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06:48 PM on 04/11/2011
Hey, how do you feel about peacefully dividing the country into two equal nations?
You wouldn't have to worry about our " tax and spend, pro-choice, pro gay marriage, limited over seas involvement, anti-drug war, no federal reserve, pro social safety net, etc. " policies ever again...

You want to do it?
You want to do it?
You want to do it?
You can have have Wall Street.
You want to do it?
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AdamWest1313
Hardcore Agnostic
09:21 PM on 04/11/2011
I love the "You can have Wall Street" added in there. The liberal country better get Oregon!
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RuralRoute1
Kennedy Democrat, George Carlin Catholic
07:06 PM on 04/11/2011
Why do you insist that we all be at the mercy of what you call the "mega millionaire or a billionaire they can afford to move their money else where at a moment notice"?. Don't you think something should be done about those who are so "mega" that the rules don't apply to them? Or should we just shine their shoes and hope they tip well?
Aesculus glabra
My micro-bio is empty
09:07 PM on 04/11/2011
The top 2% that are so frequently mentioned on this site are those who earn over $250K per year. There aren't enough millionaires and billiionaires in the world, let alone the U.S. to pay for all the entitlements that liberals want.
Genders
Love, Tolerance, Enlightenment
04:52 PM on 04/11/2011
Great budget! Folks, this is the people you need to vote into power!!!!! NOW. The coming election, make sure you are registered to the primaries, and find your local true progressive, Kucinich, Dean, Grayson type candidates and support them. Don't fall for the Charming, tall, slick, well financed DLC/Rahm/Clinton/Obama "sellable"(sold) conservadems. Wake up!

To sum it up: Tax the super rich, seize the bankster casinos, cut the war budget by half, invest in infrastructure, free public education, the citizens safety net, and green energy.
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edejan
10:56 PM on 04/11/2011
Faved. Already a fan.
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realitytrumpsbull
Two 'alves of coconut!
04:51 PM on 04/11/2011
I say the goals sound laudable, but I also say 'no sacred cows'. Figure out how to run education and social programs 10% cheaper, and show me, show me, show me, I want a quarterly budget report, and also 'put it in writing' that future administrations have to adhere to such a plan beyond the lip service level. The problem with the whole budget thing is, frankly, a lot of people really don't believe what Congress has to say about the budget, anymore. I don't know if that would be a majority of people, I don't have time or resources to go out, and poll 307 million people, or even a sizeable portion thereof, but it is at least my belief, that there are 'holes' in Congress' credibility on the issue of budget. And, that's where I think more transparency is a Good Thing. I would also like to hear contingency plans from Rep. Honda  about what kind of steps the individual states can take, if/when they find themselves overbudget. Increasing taxes on corporations is not a good enough answer. There still have to be fundamental and far-reaching changes in how government at either state or federal level handles money, once recieived from the public, or fresh off the printing press.  We didn't get to 14 trillion in national debt, getting it back down to below 6 trillion and falling won't be an accident, either, and it will involve Congress mastering one simple english-language word: "NO". Because until they incorporate that one into their vocabulary, with some volume and sincerity behind it, frankly all bets are off. Talk is cheap, you can make campaign promises and speeches until the cows come home and the sun sets, and none of it, none of it is in any way legally binding. That's why I say 'put it in writing', so that various and sundry parties and officials can actually be held accountable for it if they deviate. Either we really want a balanced budget, and are willing to do some hard work and make some sacrifices, or we don't and aren't. Which is it? 46 of 50 states in debt. Federal government going 4 billion further into debt, on a daily basis. No 'trickle down' in evidence from entities like bailout banks. So....?