“The Progressive Policy Institute applauds President Biden for proposing a budget that calls for $1 trillion of deficit reduction over the next decade. After a year in which loose fiscal policy contributed to inflation rising to its highest levels in over 40 years, it’s essential that Congress uses its power of the purse to complement the Federal Reserve’s inflation-fighting efforts.
“However, it remains unclear if the specific package of policies proposed in the President’s budget would achieve his stated objective. Several major provisions are unscored or have their scores bundled together in a couple of opaque line items. There is also no attempt to focus this package on a few core policies that could get a majority in the Senate after it became clear last year that the whole Build Back Better framework could not.
“Thus, it falls upon Democrats in Congress to fill in the blanks. PPI urges lawmakers to pass an energy security and inflation control bill that meets the President’s stated goal of reducing deficits by $1 trillion without relying on budget gimmicks and funds smart investments in clean energy to reduce our dependence on fossil fuels produced by foreign adversaries like Russia.
“We also believe that the new revenue proposals included in this budget merit debate and consideration. But it is unlikely most of these policies could be sufficiently vetted and refined in time for inclusion in a reconciliation bill before the midterm elections. The focus now must be on policies that can pass before the August recess.
“Democrats cannot afford to let the perfect be the enemy of the good. It’s long past time for lawmakers to figure out what sustainable, disinflationary fiscal policies can get majority support in both chambers and send them to President Biden’s desk for his signature.”
The Progressive Policy Institute (PPI) is a catalyst for policy innovation and political reform based in Washington, D.C. Its mission is to create radically pragmatic ideas for moving America beyond ideological and partisan deadlock. Learn more about PPI by visiting progressivepolicy.org.
Launched in 2018, PPI’s Center for Funding America’s Future works to promote a fiscally responsible public investment agenda that fosters robust and inclusive economic growth. We tackle issues of public finance in the United States and offer innovative proposals to strengthen public investments in the foundation of our economy, modernize health and retirement programs to reflect an aging society, and transform our tax code to reward work over wealth.
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Media Contact: Aaron White – awhite@ppionline.org
