New paper: “Tax and spending reform for fiscal stability and economic growth”

“Tax and spending reform for fiscal stability and economic growth”

By Andrew Biggs, Alan Viard, Alex Brill and Joseph Antos

American Enterprise Institute

May 19, 2015 | AEI Economic Perspectives

Key Points

• The current trajectory of explosive growth in federal debt and entitlement spending is fiscally untenable and will unduly burden future generations.
• This plan focuses on tax reform proposals that raise necessary revenues with the least possible impact on saving and economic growth and on entitlement spending reform proposals that make those programs better targeted and more efficient.
• These proposals would improve fiscal stability and economic growth and hold the national debt to 62.7 percent of annual gross domestic product in 2040 by narrowing the fiscal imbalance, limiting the size of government, and adopting a more growth-friendly tax code.

Read the PDF.

Read the full Peterson Foundation Solutions Initiative III report.