Fiscal Policy

Recent comments by presidential candidate Rick Santorum have invited skepticism on the importance of a college education. And, there are legitimate reasons to question the value of a college degree, to be sure. After all, the cost of college is going up and the ability of most families to pay those costs is shrinking in comparison.

After 30 years of greed being good and rising tides lifting all boats, inequality -- or "class warfare," if you prefer -- is back on the political agenda.

The United States faces a number of serious fiscal and economic challenges. Federal budget deficits are projected for the foreseeable future, the economy remains weak, Social Security faces long-term financing concerns, health care spending is growing faster than the economy, tax policy is at a major crossroads, and our national debt continues to rise. Inattention to the ballooning national debt threatens to undermine the economy and our competitiveness, and could lead to a serious fiscal crisis.

On Monday, the White House released its FY 2013 budget. Our major findings include:

In this episode of The Sidebar, the weekly podcast from the New America Foundation that looks at what's in and what's underlying the news.

Justin King, Noam Sheiber, and Marc Goldwein discuss President Obama's budget proposal and Rick Santorum's surge in the Republican Primaries. Pamela Chan hosts.

The Asset Building News Week is a weekly Friday feature on the The Ladder, the Asset Building Program blog, designed to help readers keep up with news and developments in the asset building field. This week's topics include the President’s Budget, the CFPB, public benefits, inequality and mobility, community colleges, and financial education.

After two earlier rollouts—the announcement of a new “defense strategic guidance” on Jan. 5 and the top-line numbers for the new defense budget three weeks later—the Pentagon today finally released its actual budget request for fiscal year 2013, with all the details attached. When you read through the mountain of pages and appendixes, a curious discrepancy sticks out.

The Congressional Budget Office (CBO) released its updated budget and economic projections today, showing the appearance of a sustainable debt trajectory over the next ten years. However, these projections do not incorporate the costs of policies lawmakers are very likely to continue, nor do they show the long-term costs of an aging population and growing health care costs beyond the ten year window.

Among our major findings based on the report:

Yes. Making Mitt Romney pay more in capital gains taxes would both help slow the alarming growth of inequality in the U.S. and, if offset by a decrease in the corporate tax rate, help keep capital and investment within our borders.

Engagement with elected leaders by their constituents is a powerful accountability mechanism, and elections are a decisive expression of that function. In a year where poverty and inequality are at historic levels and the prospects for low-income families to improve their circumstances increasingly uncertain, how will these conditions influence both the rhetoric and policy proposals of those seeking elected office and the choices of voters?