We have always have been proponents of paying for the costs of policies such as the tax extenders and doc fixes, since doing so would make a significant improvement in the long-term debt situation. Unfortunately, even a strict adherence to pay-as-you-go rules (PAYGO) leaves the debt on a substantial upward path.
Medicare spending has grown remarkably slowly so far this year, according to the often-overlooked Monthly Budget Reviews from the Congressional Budget Office (CBO). Through April (seven months into Fiscal Year 2014), net Medicare spending has increased by $2 billion, or just 0.7 percent, from the same seven months last year.
The Government Accountability Office (GAO) recently released the spring update to its long-term federal budget simulation series. In their report, GAO produces simulations from 2014-2088 under two sets of assumptions, a Baseline Extended and an Alternative Scenario. These simulations show fiscal conditions under different sets of policy options.
The recent slowdown in federal health care spending has certainly been good news for the budget, knocking hundreds of billions of dollars off projections over the next decade. A main debate in the health policy world lately has been to what extent this slowdown can continue both for public health spending and overall national spending.
The White House issued a Statement of Administration Policy (SAP) yesterday in opposition to the extension and expansion of the Research & Experimentation (R&E) tax credit recently passed by the House Ways and Means Committee. The Administration supports the R&E credit, the SAP explains, but opposes the $156 billion unoffset cost of the House proposal.
Today, Wonkblog published a “Know More” feature arguing that “You Should Tune Out Politicians Who Are Still Talking about Government Debt.” As evidence for this claim, they cite the recent Center on Budget and Policy Priorities (CBPP) report that shows the long-term debt situation has improved relative to its 2010 projections, and quote the report’s assertion that "no deficit or debt crisis looms, and the weak labor market remains the nation’s most immediate economic concern."
With April's updated projections from the Congressional Budget Office (CBO), spending on major federal health care programs (Medicare, Medicaid, and the Affordable Care Act's exchange subsidies) has now been revised downward by $900 billion, or 0.4 percent of GDP, cumulatively from 2011 through 2021, just since their March 2011 projections.
Congress is continuing to discuss this week the tax extenders, a set of tax breaks that expired at the end of last year which could have major fiscal implications if they were extended without being paid for. Below, we describe the extenders in a series of charts.
The Center on Budget and Policy Priorities (CBPP) released a new set of long-term debt projections today. They find that while the debt will remain stable at about 74 percent of GDP through 2020, it will rise significantly thereafter, reaching 89 percent of GDP by 2030 and exceeding 100 percent by 2040.
As Congress considers how to address the “tax extenders” that expired last year, it’s important to remember that many major proposals would allow these temporary tax breaks to expire or offset their cost. During the recent Ways and Means Committee mark-up of tax extenders legislation, it was suggested that the President’s budget did not pay for the temporary tax provisions that it extended.
The Administration recently submitted a $302 billion, four-year transit proposal to Congress to address the chronic challenges facing surface transportation spending. The GROW AMERICA Act would restructure the Highway Trust Fund (HTF), dedicate new revenue to the trust fund from corporate tax reform, and suggests new budgetary treatment for transit funding.
The first of the FY 2015 appropriations bills hit the House floor today, kicking off a five month timeline for lawmakers to avoid a government shutdown like the one last October. Overall spending levels will not be a problem to the extent they were last year, as overall levels were approved in last year's Bipartisan Budget Act (BBA), and both parties seem to be willing to stick to them.
The push among lawmakers to reform housing finance has picked up lately, as proposals have been emerging in recent weeks. The most prominent one in the Senate has been proposed by Banking Committee Chairman Tim Johnson (D-SD) and Ranking Member Mike Crapo (R-ID).