The Purple Generational Balance Plan

We, the undersigned, support the Purple Generational Balance Plan.

The Case for Generational Balance

  1. Our nation is broke, not in 50 years, 20 years, or 10 years. It's broke today.
  2. Our country's fiscal gap (the present value difference between all future spending and taxes) is enormous. Based on CBO projections, it's $211 trillion or 14 times GDP.
  3. We can't leave a $211 trillion bill to our children. It is far beyond their capacity to pay.
  4. No matter what we paid or received in the past, we need to collectively deal with this problem going forward.
  5. But to assess the problem, we need to measure the fiscal gap on a routine basis.
  6. And to understand how we are treating different generations, we need to do generational accounting on a routine basis.

The Purple Generational Balance Plan

  1. Requires the Government Accountability Office to do an annual, infinite horizon fiscal gap accounting.
  2. Requires the Government Accountability Office to do a fiscal gap analysis of every major fiscal bill pending before Congress.
  3. Requires the Government Accountability Office to do an annual generational accounting comparing the lifetime net tax rates facing future generations with those projected for current generations.
  4. Requires the Government Accountability Office to do a generational accounting of every major fiscal bill pending before Congress.
  5. Requires the President and Congress to set fiscal policy to eliminate the fiscal gap and to adjust fiscal policy annually to ensure the fiscal gap remains at zero.
  6. Requires the President and Congress to set fiscal policy that stabilizes the lifetime net tax rate facing future generations so that future generations are not taxed at ever higher rates.
  7. Requires the President and Congress to set fiscal policy to achieve generational equity, i.e., to ensure that the lifetime net tax rates of today's and tomorrow's children are not substantially higher than those of current adults.