The Bottom Line

April 17, 2014

CBO has released their analysis of the President's FY 2015 Budget and CFRB released a report summarizing the findings. CBO finds a less optimistic outlook than the President's Office of Management and Budget (OMB) with debt up to 74.3 percent of GDP in 2024 as opposed to OMB’s projection of debt on a downward path toward 69.0 percent of GDP.

April 17, 2014

The Congressional Budget Office (CBO) has released its analysis of the President's FY 2015 budget, applying its own budget baseline and methodology to the President's policies. The agency finds that the budget would reduce debt relative to CBO's baseline by significantly less than the Administration anticipates, with debt on a modest upward path in the latter part of the ten-year budget window, increasing to 74.3 percent of GDP in 2024, rather than falling to 69 percent of GDP as OMB previously estimated.

April 16, 2014

In the Wall Street Journal today, Chris Chocola of the right-leaning Club for Growth called for Congress not to renew the expired "tax extenders." Earlier this month, the Senate Finance Committee advanced legislation to reinstate more than 50 of these provisions, at a cost of $85 billion.

April 16, 2014
But Doc Fix Cost Jumps 18%

One of the notable changes in Congressional Budget Office’s (CBO) latest budget baseline was a downward revision in projected Medicare spending from their last forecast in February. CBO now estimates that Medicare spending net of offsetting receipts for the 2015-2024 period will be approximately $106 billion lower than what the agency projected back in February.

April 16, 2014

In honor of tax day, CRFB released its Tax Day 2014 chartbook yesterday, with ten charts (and one table) that explain federal taxes – who pays them, what they pay for, and how they are collected.

April 15, 2014

Happy Tax Day! CRFB has produced a number of analyses and blog posts on tax issues since last year's filing deadline, from our report on House Ways & Means Chairman Dave Camp's Tax Reform Act of 2014, to our recent work analyzing the costs of the tax extenders. Here are just a few of our most recent blog posts on tax issues:

April 15, 2014

CBO's most recent budget projections show debt on an unsustainable path – rising from a post-war record 73 percent of GDP today to 78 percent by 2024. Importantly, however, CBO's projections do not always reflect where debt is likely to go after accounting for the actions that lawmakers might take.

April 14, 2014

The budget estimates in the Congressional Budget Office's (CBO's) baseline released today may have looked largely the same as in February's report, but CBO actually made significant revisions to their cost projections of the coverage provisions in the Affordable Care Act.

April 14, 2014

In advance of the release of their analysis of the President's budget, the Congressional Budget Office (CBO) has updated their budget baseline for fiscal years 2015-2024. While the newest projections are a slight improvement over their previous estimates in February, they still show debt on a clear upward path as a share of GDP starting in 2018 and likely continuing over the long term. 

April 14, 2014

After allowing taxes to rise on the highest 1 percent of earners at the beginning of last year, many Democrats patted themselves on the back for raising $620 billion of revenue for deficit reduction, while many Republicans declared that the tax increase fulfilled any future need to raise revenue.

April 11, 2014

In our discussion of House Budget Committee Chairman Paul Ryan's (R-WI) budget, we talked about one area where the budget actually boosts spending: defense. The budget repeals the sequester for defense spending, shifting those cuts to the non-defense side while further reducing non-defense spending. However, the committee report for the budget resolution tightens the caps by clarifying the definition of what can count as war spending.

April 10, 2014

The enormous cost of providing long-term care represents a major challenge for America's health system, and a major funding challenge for Medicaid, the public program that covers much of the cost of long-term care. To identify a solution to this challenging problem, the Bipartisan Policy Center (BPC) recently launched a Long-Term Care Initiative (LTCI) to find a politically and fiscally viable path forward to improve the financing and delivery of long-term services and supports (LTSS).

April 9, 2014

Budgets for the upcoming fiscal year have been released from the White House, House Republicans, House Democrats, the Republican Study Committee, the Congressional Progressive Caucus, and the Congressional Black Caucus. All of them offer competing visions for the size and scope of government over the next decade.

April 9, 2014

Just after House Democrats released their budget this week, the Republican Study Committee has come out with its own proposal to balance the budget in just four years. The budget reduces spending by $7.4 trillion over ten years relative to their baseline, which includes a war drawdown. By 2024, the budget produces a surplus of nearly $300 billion, or 1.1 percent of GDP.

April 9, 2014

Following House Budget Committee Chairman Paul Ryan's (R-WI) budget markup last week and floor debate this week, the Congressional Black Caucus budget released yesterday joined the Progressive Caucus and the House Democrats in their effort to offer alternatives to Chairman Ryan's budget. Their budget achieves $1.2 trillion in deficit reduction (not including war drawdown savings) over the coming decade keeping deficits between 2.5 and 3 percent of GDP.

April 9, 2014

Congressman Reid Ribble (R-WI) and Congressman Mark Pocan (D-WI) introduced the Long-Term Studies of Comprehensive Outcomes and Returns for the Economy Act, or Long-Term SCORE Act, today.

April 9, 2014

Budget Committee Chairman Paul Ryan’s (R-WI) FY 2015 budget achieves $3 trillion of its $5.1 trillion in deficit reduction over the next ten years from health care programs, predominantly from repealing the coverage expansions passed in the Affordable Care Act (ACA). Repealing those coverage expansions alone would reduce spending by $2.1 trillion through 2024. Notably, though, Ryan’s budget leaves the ACA’s Medicare reforms in place (although also creates a reserve fund to make it easier for Congress to replace those reforms with other cuts).

April 8, 2014

Each year, the Government Accountability Office (GAO) produces a report covering opportunities to reduce fragmentation, overlap, and duplication within the federal government. Its 2014 report, released today, is the fourth report in this annual series, which originated from an amendment authored by Senator Tom Coburn (R-OK) as part of the 2010 debt ceiling legislation.

April 8, 2014

This blog has corrected the amount of Medicare savings in the budget. It previously said $50 billion, but that included the cost of repealing the Medicare sequester.

April 7, 2014

The House Ways and Means Committee is holding a hearing Tuesday to consider whether to permanently extend the business tax breaks that expired at the end of 2013. In particular, the hearing will focus on the provisions extended by Camp's Tax Reform Act of 2014; the two largest of which are the research and experimentation (R&E) tax credit and Section 179 expensing.

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