US Budget Watch | A Project of the Committee for a Responsible Federal Budget

New Report: A Fiscal Voter Guide to the 2008 Election

Promises, Promises: A Fiscal Voter Guide to the 2008 Election -- the newest report from US Budget Watch -- will help voters find their way through the thicket of policy proposals put forward by the campaigns of Sens. John McCain (R) and Barack Obama (D), presenting a capsule summary of the candidates' major policy proposals and an estimate of each proposal's likely fiscal impact. Read More Here...

Budget Blog

What’s on the Table for Obama, Part II

30 September 2008 - 3:13pm

September 30 - Last week, Slate Magazine reported that the Obama campaign had removed language about the Senator's opposition to raising the Social Security retirement age from his website. Since then, the campaign website has restored the previous language on the retirement age, and eliminated language stating that he would "work with members of Congress from both parties to strengthen Social Security and prevent privatization while protecting middle class families from tax increases or benefit cuts." Currently, the website reads (emphasis added to restored text):

"Obama and Biden are committed to ensuring Social Security is solvent and viable for the American people, now and in the future. Obama and Biden will be honest with the American people about the long-term solvency of Social Security and the ways we can address the shortfall. Obama and Biden will protect Social Security benefits for current and future beneficiaries alike. And they do not believe it is necessary or fair to hardworking seniors to raise the retirement age. Obama and Biden are strongly opposed to privatizing Social Security."

Candidates Propose Increase in FDIC Insurance Limit

30 September 2008 - 2:04pm

September 30 - This morning, after the House failed to pass a financial bailout plan - and stocks subsequently plunged by record amounts - both candidates suggested that the FDIC should help reassure Americans about the security of money placed in bank deposits by raising the insured funds limit from $100,000 to $250,000. Senator Obama suggested that this measure "would boost small businesses, make our banking system more secure and help restore public confidence in our financial system."
Both candidates also expressed concern over the failure of the bailout plan. As McCain explained:

"We haven't convinced people that this is a rescue effort, not just for Wall Street but for Main Street America, for working families, for small businesses, the heartland of America - all over America... We didn't do a good enough job."

The Candidates' Fiscal Options Fade

29 September 2008 - 3:55pm

September 29 - An article in the Financial Times today laments that neither presidential candidate was willing to face up to hard fiscal choices, in light of the expected bailout. Warning that the candidates would not be able to afford their tax and spending plans, and that the deficit was projected to sky rocket, the piece argued that:

"If one idea caused the subprime meltdown and the subsequent financial emergency, it was the belief that house prices could not fall... A similar complacency now attends discussion of the fiscal outlook... It is assumed that the US can borrow without limit. In fact, the US has a budget constraint... This limit is about to be tested, and if the global capital market decides enough is enough, the challenge confronting the Treasury and the Federal Reserve will make even last week's exertions seem mild...The next administration's fiscal options are vanishing before our eyes. Somebody should tell the candidates - and the country."

McCain	Obama
Taxes
Will make permanent most of the Bush tax cuts, eliminate the AMT, reform the estate tax, cut corporate income taxes, create a new, permanent R&E tax credit, raise the dependent child exemption, close corporate tax loopholes, and create an alternative tax system with fewer rates and deductions.	Will renew the Bush tax cuts for those making under $250,000, offer new tax credits for workers and homeowners, eliminate income taxes for many seniors, make permanent the R&E tax credit, expand the EITC and saver's credit, and close corporate tax loopholes.
Healthcare
Will replace the current employer healthcare exclusion with a flat refundable tax credit for those who purchase insurance, while implementing measures to reduce healthcare costs such as prescription drug reimportation, tort reform, better Health IT, and more consumer driven medicine.	Will move toward universal health coverage through mandates for employers and children as well as large public subsidies while enacting measures to reduce healthcare costs such as prescription drug reimportation, better Health IT, and incentives to increase efficiency.
Social Security
Will reform Social Security in a bi-partisan manner, or by submitting a comprehensive proposal for an up or down vote if necessary; opposes increasing taxes and supports private accounts to complement, rather than replace, Social Security.	Will raise additional Social Security revenue by applying new taxes to income above $250,000 and will reform Social Security in a bi-partisan manner; has ruled out privatization and opposes raising the retirement age or cutting benefits.
Energy
Will implement a cap-and-trade system for greenhouse gasses with both auctioned and freely distributed permits, encourage energy conservation and diversification, and end several energy subsidies.	Will implement a cap-and-trade system for greenhouse gasses with fully-auctioned permits, fund the development of new and better green technology, and end tax subsidies to oil and gas companies.
Other New Spending
Will increase the size of the military, develop a missile defense shield, and reform unemployment insurance.	Will introduce a number education reforms, while increasing basic research, growing the size of the military and increasing foreign aid.
Spending Cuts
Will eliminate all earmarks, freeze discretionary spending for a year, reform the defense procurement process, reduce agricultural subsidies ,and cut wasteful spending.	Will eliminate the guaranteed student loan program, cut earmarks, reform contracting procedures, reduce wasteful spending, and realize savings from ending the Iraq war.
Budget Process Reform
Will make budget rules more balanced, require a 3/5 majority to raise taxes, and seek a line-item veto.	Will re-instate pay as you go (PAYGO) rules to restore fiscal discipline.