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Demos Responds: Bipartisan Policy Center Plan Fails To Address Declining Middle Class

Washington, DC—Today, former Senate Budget Committee Chairman Pete Domenici and former White House Budget Director Alice Rivlin released a comprehensive plan to address the federal deficit that includes several of the same oversights as the Bowles-Simpson proposal. In response, Tamara Draut, Vice President of Policy and Programs at Demos, a national policy center that promoting economic prosperity and recovery-oriented fiscal priorities, issued the following statement:

“The Bi-Partisan Policy Center’s report is a significant contribution, and includes many well-reasoned proposals. Nevertheless, it shares a fundamental flaw with the more radical Bowles-Simpson proposal.  Neither plan recognizes that America needs recovery and prosperity, not austerity.  Growing the economy again through public investment is the fastest, fairest way to address our fiscal challenges.

“Of the many fiscal policy proposals offered thus far, only one – Rep. Schakowsky’s Nov. 16 plan – has asked the core question that will determine the extent of American greatness in the 21st century: what will it take to grow and secure the middle class? 

“The BPC plan does not go far enough on increased revenue or progressive investments to address the urgent problem of a declining middle class.  Clearly, a plan committed to the health and wealth of our middle class would tax Wall Street speculation and toxic carbon pollution before taxing families for groceries and medical care.”

Demos, in partnership with The Century Foundation and the Economic Policy Institute, will issue it’s own budget blueprint on November 29, 2010 and hold an event to respond to the fiscal commission’s recommendations in Washington, DC.

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