We recently had Peter Orszag (Citi Vice Chair and former Obama OMB director) in the office for a discussion on the US budget. In a previous clip he explained the flawed assumptions behind the Paul Ryan budget.
In this clip he offers his ideas for what should be done with the budget.
In terms of the current situation, he favours a continued payroll tax holiday whose expiry is connected to the labour market. This probably isn’t ever going to happen politically but the idea would be keeping payroll taxes low until employment to population regains a certain threshold.
As for the long term, he puts forth a Social Security reform that he thinks liberals could get behind. It would involve taxing a higher level of wages (to account for wage inflation) while also making benefits more progressive, justified by the fact that lower income earnings don’t live as long.
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