Saturday, March 6, 2010

CBO Analysis of President's Budget

The Congressional Budget Office has issued a preliminary analysis of the President's budget. Here are some highlights from the CBO Director's blog:
Measured relative to the size of the economy, the deficit under the President’s proposals would fall to about 4 percent of GDP by 2014 but would rise steadily thereafter. Compared with CBO’s baseline projections, deficits under the proposals would be about 2 percentage points of GDP higher in fiscal years 2011 and 2012, 1.3 percentage points greater in 2013, and above baseline levels by growing amounts thereafter. By 2020, the deficit would reach 5.6 percent of GDP, compared with 3.0 percent under CBO’s baseline projections....

Revenues under the President’s proposals would be $1.4 trillion (or 4 percent) below CBO’s baseline projections from 2011 to 2020, largely because of the President’s proposals to index the parameters of the AMT for inflation starting at their 2009 levels and to extend many of the tax reductions enacted in 2001 (EGTRRA) and 2003 (JGTRRA)...

...Excluding funding for war-related activities and the Pell Grant program (which the President proposes to convert to a mandatory program), discretionary outlays over the 2011-2020 period would be $0.5 trillion (or 4 percent) greater than the amounts projected in CBO’s baseline.
Whether you generally support the President or not, I encourage you to go read the whole post. It's not that long and you will be better informed for having done so.

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