U.S. Sens. Bob Corker, R-Tenn., and Claire McCaskill, D-Mo., have introduced the Commitment to American Prosperity Act, which would phase in hard caps on government spending over a 10-year period and impose sequestration, or an automatic spending cut, if the caps were breached.
But in two new studies, Economic Policy Institute experts say the CAP act could severely harm both the social safety net which millions of Americans rely on, and the economy, especially during downturns like the Great Recession.
"Spending caps are much better rhetorically than they would be in practice," says Rebecca Thiess, policy analyst at EPI. "Rhetorically they sound very reasonable and responsible; [but] in practice they would decimate what government can spend on really important programs."
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
