Today, the Economic Policy Institute released Investing in America’s Economy: A Budget Blueprint for Today and Tomorrow, a budget plan that lays the foundation for long-run economic growth by reversing decades of eroding public investment and declining tax code progressivity. The plan was developed as part of the Peter G. Peterson Foundation’s Solutions Initiative III, which convened policy organizations from across the ideological spectrum to develop budget plans addressing our nation’s fiscal challenges. The American Action Forum, the American Enterprise Institute, the Bipartisan Policy Center, Center for American Progress, and EPI developed policy proposals and presented these plans at the Peterson Foundation’s May 19 Opportunity for America forum. The Peterson Foundation “scored” the plans of the five think tanks based on Peterson’s projections for gross domestic product, interest rates, unemployment, and other economic indicators.

EPI’s plan starts from a vision shared by most Americans: rising living standards, greater economic opportunity and security, and provision for future generations. The budget would roll back austerity measures and increase public investments, update the tax code to address inequality, and strengthen the social safety net, while achieving a sustainable debt path. It shows that the nation can lower its debt-to-GDP ratio by increasing both spending and taxes, in contrast with current thinking among many legislators on Capitol Hill.