The Intergenerational Financial Obligations Reform (INFORM) Act, recently introduced by Senators John Thune (R-S.D.) and Tim Kaine (D-Va.), recognizes that America’s long-term debt crisis cannot be measured accurately using only short-term analyses. As we have argued for the past three years,phased-in action taken now by Congress and the President to reform the tax code and the major federal entitlement programs will have a profound impact on the tax and economic burden of future generations.
While long-term precision is very difficult in such calculations, we at the Economic Policy Project believe that the INFORM Act is an important step in the right direction.
If Americans don’t realize that we are sacrificing the future by emphasizing present consumption, then the efforts of the sponsors of this legislation will help educate our citizens.
Act gently and reasonably now, to avoid wrenching tax and benefit actions later, is the message we must carry.