Vision
The backbone of a strong American economy is a strong middle class, so strengthening the middle class and restoring the American dream is at the heart of our proposal. The plan we offer today is based on fiscal discipline and more efficient government, shared responsibility and needed investment. Our plan achieves primary balance by 2015 and total balance by 2030. CAP gets there by cutting the cost of health care, strengthening Social Security and ensuring its solvency, capping national security spending at Cold War peak levels, and raising revenues in ways reform the tax code, reduce our dependency on foreign oil, and require the wealthy the pay their fair share. It also creates room for significant investments that spur innovation, economic, and job growth.
Health Care
We must control health care costs without sacrificing the quality of care. We can do this in Medicare and Medicaid by focusing on keeping people healthy, investing in technology innovations, paying for quality not quantity by implementing the reforms in the Affordable Care Act. But if by 2020 health care costs grow faster than the economy, our plan includes a failsafe that applies lessons from successful pilot reforms to all of Medicare, and then, if necessary to insurance plans offered in health care exchanges and then to the entire health care sector to lower costs.
Social Security
Social Security pays for itself. It is not critical to deficit reduction, but it is critical for tens of millions of Americans. Our plan updates Social Security for the modern American family, addresses the systemÕs gender discrimination, maintains the current retirement age and ensures program solvency for the next 75 years. And it pays for necessary benefit improvements by balancing revenue increases and restraining benefit growth so that no American will live in poverty upon retirement.
Defense
National security means more than a powerful military, it means effective homeland security and a range of diplomatic and economic development activities abroad. ThatÕs why weÕve constructed a unified national security budget to budget for the countryÕs total defense. We also propose specific cuts in the current defense program to better align spending with our militaryÕs needs and strategy. In 2016 we set our unified security budget at $700 billion, a level of spending equivalent to 1986 during the height of the Cold War, adjusted for inflation.
Income security,
transportation, education, and all other government programs
Investing in people and technology is and always will be key to our international competitiveness. ThatÕs why weÕve proposed to double spending on science and technology research, increased funding for K-12 education, pre-K, and Pell Grants, and invest 20 percent more in transportation and infrastructure. We must remain the most innovative and imaginative economy on earth. These investments put the American Dream once again within the reach of every young person in America.
Revenue
Tax revenues must be part of the plan to balance the budget, make investments our country needs, and keep our promises to vulnerable Americans; there is no alternative. Our plan increases revenue through tax system reforms, including closing loopholes for the wealthy; simplifying personal income tax rates, and cutting taxes for middle-class and lower-income families. Our plan adopts the Clinton-era top tax rate, alongside a temp surtax of 5 percent for those who earn over a million dollars a year. This surtax expires when the federal budget is balanced. The top capital gains tax rate would return to the level signed into law by President Reagan. We also propose a five-dollar per barrel oil-import fee to price carbon pollution and to eliminate tax breaks for the oil and gas industry. Taking these steps will decrease the economic risk of oil dependence, reduce greenhouse gases and unleash investment in new clean energy systems.
Conclusion
I know our current problems can be solved. Why? Because weÕve done it before. When President Clinton took office we had large deficits and high unemployment. So we focused on what works, credible fiscal discipline and the right investments that gave us a budgetary surplus and historic economic and job growth. Our plan today builds on that experience, our priorities ensure all Americans benefit, not just an elite few. We make this happen by making tough choices that some may not like, but that our country needs. Our plan is fair and focused, delivering effective and efficient government to promote opportunity for all Americans.