Report: The 2014 CBO Long-Term Budget Outlook

    CRFB's MacGuineas on Bloomberg TV

    CRFB Examines Budget Process At Age 40

    Fixing the Highway Fund

Report: The 2014 CBO Long-Term Budget Outlook

  

The Congressional Budget Office (CBO) released its 2014 Long-Term Budget Outlook, detailing the budget picture for the next 75 years. The report shows debt rising as a share of the economy continuously after 2017, a trend which CBO describes as unsustainable over the long run. Read our six-page analysis of the report here.

 

CRFB's MacGuineas on Bloomberg TV

 

CRFB President Maya MacGuineas appeared on Bloomberg Television to discuss CBO's Long-Term Budget Outlook and how imperative it is for lawmakers to address our nation's fiscal challenges. Watch the full interview on Bloomberg TV here.

CRFB Examines Budget Process At Age 40

 

Our new paper, The Budget Act at 40: Time for a Tune Up? details many problems facing the current budget process including lack of transparency, lack of accountability, and lack of a long-term focus. These issues have resulted in poor planning and policy around the debt, with the process increasingly becoming ad hoc, ineffective, and short-sighted in practice. Read the blog here.

Fixing the Highway Fund

 

In light of the nearing insolvency of the Highway Trust Fund, CRFB recently released a new paper -- Trust or Bust: Fixing the Highway Trust Fund -- along with blogs detailing options to increase revenue, reduce spending, identify new revenue sources, finance a general revenue transfer, and fix the budgetary treatment of the HTF.

 

 

CRFB's Blog: The Bottom Line

July 28, 2014

This afternoon, Chairman Bernie Sanders (I-VT) and Chairman Jeff Miller (R-FL) announced compromise legislation to address the serious problems at the Department of Veterans Affairs. The authors said that the legislation would fund private health care for certain veterans, provide for hiring of additional health care providers by the VA, and make other changes in the VA health care system with a reported net cost of $12 billion.

The Social Security and Medicare Trustees reports provide a detailed projection of each program's finances over the next 75 years. In response, we have condensed the 250-page Social Security report into a concise, 6-page analysis. While Social Security's projections are similar to last year's report -- with the program's finances deteriorating slightly -- this just reinforces the need for lawmakers to make Social Security financially sound for current and future generations.

Today, the Social Security and Medicare Trustees released reports on the financial state of the country's largest entitlement programs. The reports show all three major trust funds on the road to insolvency, with the Social Security Disability Insurance trust fund projected to run out in 2016, the old age trust fund projected to be exhausted in 2034 (2033 if combined with the DI trust fund), and the Medicare Hospital Insurance trust fund projected to become insolvent by 2030 (or 2029 under their alternative scenario). As the reports show, action must be taken soon to keep these programs financially sustainable for future generations.

The American Enterprise Institute held an event Thursday commemorating the 50th anniversary of the start of the War on Poverty. The event, “Expanding Opportunity in America,” featured House Budget Committee Chairman Paul Ryan (R-WI) as well as a panel of experts. At the event, Chairman Ryan unveiled his plan of policy reforms to “reduce poverty and increase upward mobility throughout America." Importantly, he estimates that the plan is budget-neutral and says that no federal funding to states would be reduced from current levels. The full video of the event can be viewed here. In addition to Ryan, the panel included:

  • Stuart Butler, Heritage Foundation
  • Ron Haskins, Brookings Institution
  • Bob Woodson, Center for Neighborhood Enterprise
  • Moderator: Robert Doar, AEI

Ryan said that his main goal in developing the plan was to “give hardworking taxpayers a break” by providing them with a strong and effective safety net to fall back on. A main facet of this safety net is the idea of “Opportunity Grants,” which would be block grants to states to replace 11 current anti-poverty programs including Temporary Assistance for Needy Families (TANF) and the Supplemental Nutrition Assistance Program (SNAP or food stamps). Unlike other block grant proposals, his plan offers the same amount of funding to states as they currently receive - making it deficit-neutral - but “gives them more flexibility in exchange for more accountability.” States would have the flexibility to use funds in different ways, but they would be required to submit a plan for their programs that demonstrated how they had moved people out of poverty, included work requirements for able-bodied adults, and utilized some non-governmental service providers. Ryan aims to increase the efficiency and effectiveness of antipoverty efforts by consolidating program offices and individualizing aid plans.

 
June 4, 2013
CRFB's latest interactive tool "The Reformer" is a handy game that allows users to design their own Social Security plan. Users can select from a wide variety of benefit and revenue changes to make the system sustainably solvent. The tool then shows the effect on the program's finances and benefit and tax levels.
September 27, 2011
If you've ever wanted to design your own corporate tax reform, now you can with our new Interactive Tax Reform Calculator. There is no question that the U.S. corporate tax system is badly in need of reform, and leaders in both parties have been pursuing this goal.

CRFB Projects

The Campaign to Fix the Debt is an unprecedented and bipartisan coalition that seeks to mobilize members of business, government, and policy communities to urge Congress and the President to enact a comprehensive debt deal.

The Moment of Truth (MOT) project is a non-profit, non-partisan effort that seeks to foster honest discussion about the nation’s fiscal challenges, the difficult choices that must be made to solve them, and the potential for bipartisan compromise that can move the debate forward and set our country on a sustainable path.