Balanced: 2028 AAFs Budget Proposal To Address the

Debt & Secure A Brighter Economic Future

As part of the Peterson Foundations Solution Initiative, the American Action Forum developed a scoreable policy proposal to set the federal budget on a

sustainable, long-term path.

Balanced: 2028, AAFs Solution, Focuses on 3 Key Policy Recommendations

1.Tax Reform

Our tax code is over 100 years old. Yet, it has only been reformed a handful of times.

Balanced: 2028 would implement a progressive consumed-

income tax code. Our proposal raises adequate revenue to fund the nations priorities, while boosting long-term economic growth by 6 percent.

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President's Budget AAF Historical Average

Projected Revenue Under AAFs Balanced: 2028

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2. Entitlement Reform We address the structural imbalances in entitlement programs,

including fixing the imminently bankrupt Disability Insurance program. Our reforms place entitlement programs on a stronger financial footing.

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Fiscal Year

Mandatory outlay categories as percentages of GDP (baseline plus proposals)

Soc Sec Medicare Medicaid, etc

3. Immigration Reform Balanced: 2028 would use immigration as an economic policy

tool. Fundamental immigration reform that refocuses on economic goals would help with population and labor force growth, and thus economic growth as a whole.

Economic benefits include:

SOURCE: Peter G. Peterson Foundation, Solutions Initiative III, May 2015. See pgpf.org/solutions-initiative-iii for more details. NOTE: Current policy is defined as the alternative fiscal scenario without economic feedback from CBOs 2014 Long-Term Budget Outlook.

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American Action Forum

Current Policy

The AAF Solution balances the budget by 2028 and significantly improves the fiscal health of the U.S. Take a look at the charts below:

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AAFs Proposal vs. Current Spending through 2040 200

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0 AAF

SOURCE: Peter G. Peterson Foundation,Solutions Initiative III, May 2015. See pgpf.org/solutions-initiative-iii for more details. NOTE: Other includes nondefense discretionary and other

mandatory spending. Numbers may not sum to totals due to rounding.

6%

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Social Security

Healthcare

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Other

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Composition of Projected Federal Spending in 2040 under AAFs Proposal

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AAFs Proposal Balances in 2028

Receipts (with proposals) Outlays (with proposals)

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This plan was developed as part of the Solutions Initiative III and funded by the Peter G. Peterson Foundation. The Peterson Foundation convened researchers from organizations with a variety of perspectives to develop plans addressing our nations fiscal and economic challenges. The American Action Forum, American Enterprise Institute, Bipartisan Policy Center, Center for American Progress, and the Economic Policy Institute each received grants. All participants had discretion and independence to develop their own goals and propose comprehensive solutions. The Peterson Foundations involvement with this project does not represent endorsement of any plan.