Twelve Principles for Fiscal Responsibility

Fiscal Policy — Tue, 20 May 2008 10:45:00 -0400

The United States faces a number of serious fiscal challenges. Budget deficits are back, the economy has weakened, Social Security is unsound, growing health care spending is putting immense pressure on the budget, tax policy is at a major crossroads, and borrowing is projected to reach unsustainable levels. Politicians will have to take concrete steps to confront these challenges, and some level of sacrifice will be required. The sooner decisions are made, the better-both because it will give the public more time to adjust and because it will allow us to spread the sacrifices more broadly.

The presidential campaign can either be helpful in this process, by allowing politicians to develop a mandate for change, or damaging, if politicians merely use the election as an opportunity to promise new tax and spending initiatives that would make the situation worse instead of better. It is not surprising that politicians tend to prefer to propose costly new initiatives given that proposals to increase taxes or cut spending are rarely met with appreciation by voters and are almost always met with attacks from political opponents. But considering our current fiscal situation, it is critical that policymakers be willing to address the country's budgetary imbalances. It will require real leadership to do so.

To help move the political discussion forward, the Committee for a Responsible Federal Budget has put forth "Twelve Principles for Fiscal Responsibility." These principles will help voters ask the necessary questions and develop a better understanding of important fiscal issues, and they will help politicians speak directly to these looming problems in a manner that will prepare the country for the necessary changes ahead. Unless the next president and Congress take action to put our fiscal house in order, they will put the budget, the economy, and the well-being of future generations at risk.

The twelve principles are:

1. Admit That We Face Serious Fiscal Problems
2. Elevate the Issue of Fiscal Responsibility
3. Commit to Reducing the Deficit
4. Suggest Solutions to Fix Social Security
5. Suggest Ways to Address Rising Health Care Spending
6. Suggest Solutions to Outstanding Tax Issues
7. Plan to Reform the Budget Process
8. Use Honest Numbers
9. Offset the Cost of New Policies
10. Do Not Perpetuate Budget Myths
11. Do Not Attack Someone Else's Plan (Unless You Put Forward an Alternative)
12. The Media Should Do Their Job

See the below PDF to read the entire report.

Paul McLaughlin: All Publications, Events and Press

Twelve Principles for Fiscal Responsibility