The Peter G. Peterson Foundation funded six groups from across the political spectrum to put forward plans addressing our nation’s fiscal challenges. All the plans are here. The Center for American Progress plan, “Budgeting for Growth and Prosperity” brings the deficit below 2% of GDP within 6 years and fully balances by 2030.
The CAP budget does so while boosting clean energy research and deployment funding roughly $10 billion a year — and instituting a high and rising CO2 price. The plan achieves the CO2 reduction targets from the 2009 House climate and clean energy jobs bill (Waxman-Markey): A 42% cut (from 2005 levels) by 2030, and 83% cut by 2050.
The CAP plan does not specify whether the carbon price would be instituted as a tax or some sort of trading mechanism. Lower income groups are protected from the impact of higher energy prices through rebates and tax reform. The plan creates a single 15% tax bracket for 80% of Americans. Some of the additional clean energy funding can also go towards efficiency measures that will help lower people’s bills.
The CAP strategy probably isn’t a big surprise to Climate Progress readers. But what is remarkable is that the American Enterprise Institute (AEI) takes a strikingly similar approach on the revenue side — a high and rising CO2 price! As AEI’s plan, “A Balanced Plan for Fiscal Stability and Economic Growth,” explains: