The Committee for a Responsible Federal Budget urges the supercommittee to identify other areas of saving and address long-term drivers of debt.
Tomorrow, the Joint Select Committee on Deficit Reduction ("Super Committee") will hold its first meeting as part of a three-month effort to identify $1.5 trillion in deficit reduction over the next decade. Should the Super Committee fail to reach a majority agreement on a plan, or should that plan (or else a balanced budget amendment) not be passed by Congress, a $1.2 trillion across-the-board spending cut will go into effect.
Unfortunately, even if Congress succeeded in adopting a $1.5 trillion deficit reduction plan, it might not be enough to put the budget on a sustainable path. Thus, we urge the Super Committee to:
Go Big. From a realistic baseline in which current policies are extended, $1.5 trillion is not nearly enough to stabilize the debt. The Super Committee should look at all areas of the budget in order to identify savings of two to three times as much, with a goal of stabilizing the debt as a share of the economy and then putting it on a downward path.