CRFB Releases and Events
In February, we wrote the paper "Our Debt Problems Are Far From Solved," laying out the case for putting debt on a clear downward path as a percent of GDP with $2.4 trillion of additional savings. CBO's improved budget projections have prompted a new round of discussion of what should be the right direction for the budget.
With news yesterday that the Senate might consider a bill to replace the sequester for 2013 with a drawdown of war spending, CRFB reacted in a press release, decrying the gimmick for what it is. The bill would specifically put caps on war spending for FY 2014 through 2016 at the levels called for the President's budget -- drawing down war funding from $97 billion this year to $37 billion in FY 2016.
Yesterday, we took our first look at the President's FY 2014 Budget, which put forward the final White House deficit reduction offer to Speaker Boehner in the fiscal cliff negotiations, along with several new revenue and spending provisions.
It's President's Budget week! On Wednesday, President Obama will release his FY 2014 budget, illustrating another possible path in addition to the already-passed House and Senate budget resolutions.
Earlier this month, we reported on CBO’s updated cost estimate for switching to the chained CPI to provide a more accurate measure of inflation for indexed provisions in the tax code and in spending programs.
As we come closer and closer to the season changing to spring, it's also close to budget season. Both the House and Senate Budget Committee chairs -- Rep. Paul Ryan (R-WI) and Sen. Patty Murray (D-WA), respectively -- are expected to release budget resolutions tomorrow, with mark-ups taking place later this week. Meanwhile the President's budget, delayed due to the late resolution of the fiscal cliff, is expected to be released on April 8.
President Obama was recently quoted in the Washington Post as saying that an additional $1.5 trillion of deficit reduction would hit the $4 trillion total that many have cited as the target for total deficit reduction. While we agree on the enacted savings total, we disagree on the math.
CBO's release of its annual Budget and Economic Outlook is a treasure trove of information, sometimes not easily digestible.
To help put all that information in a more accessible form, CRFB released a brief 6 page analysis of CBO's new economic and budget projections, which are first official look at future budget projections in light of the fiscal cliff deal and other developments.
In the past few weeks, we have made the case for putting debt on a downward path as a percent of GDP as a goal for the next round of deficit reduction. This is in contrast to those who have advocated stabilizing the debt over ten years with $1.4 or $1.5 trillion of additional savings and, much more worryingly, those who believe that serious deficit reduction can wait for another ten years.