In testimony to the U.S. Senate Appropriations Committee, ITIF argued that while most attention has been focused on America's budget deficit, in fact America faces three deficits and debts: budget, trade and investment. For each we are increasing our indebtedness every year, the costs of which will be borne by future generations of Americans. In response, policymakers should take an approach to the budget that seeks to simultaneously close all three deficits. This means that Congress should increase, not cut, growth enhancing investments, including R&D, infrastructure, and education and training. These investments will drive long-term growth and innovation. At the same time, Congress should reduce the budget deficit by cutting non-productive spending (especially entitlements) and increasing taxes on individuals.
