Progressive Caucus Releases Budget Proposal

The Congressional Progressive Caucus has released their 2012 budget proposal. In their cover letter to ranking member Chris Van Hollen, they called the Republican budget proposal "monumentally reckless," and aligned themselves with the working people of the U.S., calling it "The People's Budget." According to the release:

The CPC budget:
• Eliminates the deficits and creates a surplus
• Puts America back to work with a “Make it in America” jobs program
• Protects the social safety net
• Ends the wars in Afghanistan and Iraq
• Is FAIR (Fixing America’s Inequality Responsibly)

To summarize what our budget accomplishes:
• Primary budget balance by 2014.
• Budget surplus by 2021.
• Reduce public debt as a share of GDP to 64.4% by 2021, down 16.9 percentage points from
a baseline fully adjusted for both the doc fix and the AMT patch.
• Reduce deficits by $5.7 trillion over 2012-21
• Both outlays and revenue equal 22.3% of GDP by 2021.

 The policy breakdown is as follows:

Individual income tax policies
1. Extend marriage relief, credits, and incentives for children, families, and education, but
let the upper-income tax cuts expire and let tax brackets revert to Clinton-era rates
2. Index the AMT for inflation for a decade (AMT patch paid for)
3. Rescind the upper-income tax cuts in the tax deal
4. Schakowsky millionaire tax rates proposal (adding 45%, 46%, and 47% top rates)
5. Progressive estate tax (Sanders estate tax, repeal of Kyl-Lincoln)
6. Tax capital gains and qualified dividends as ordinary income

Corporate tax reform
1. Tax U.S. corporate foreign income as it is earned
2. Eliminate corporate welfare for oil, gas, and coal companies
3. Enact a financial crisis responsibility fee
4. Financial speculation tax (derivatives, foreign exchange)

Health care
1. Enact a public option
2. Negotiate Rx payments with pharmaceutical companies
3. CMS program integrity and other Medicare and Medicaid savings in the president’s
budget.
4. Prevent a cut in Medicare physician payments for a decade (maintain doc fix)

Social Security
1. Raise the taxable maximum on the employee side to 90% of earnings and eliminate the
taxable maximum on the employer side
2. Increase benefits based on higher contributions on the employee side

Defense savings
1. End overseas contingency operations emergency supplementals starting in 2013,
providing $170 billion in FY2012 funding for withdrawal
2. Reduce baseline Defense spending by reducing strategic capabilities, conventional
forces, procurement, and R&D programs

Job Creation
1. Invest $1.45 trillion in job creation, early childhood, K-12 and special education, quality
child care, energy and broadband infrastructure, housing, and R&D
2. Infrastructure bank
3. Surface transportation reauthorization bill
4. Finance surface transportation reauthorization

The Progressive Caucus is the largest Congressional caucus and is chaired by Rep. Raul Grijalva (D-AZ) and Rep. Keith Ellsion (D-MN).