Fiscal Cliff

Stimulus Provisions Updated: Extended or Not?

The economic stimulus package enacted in 2009 is now four years behind us. According to recovery.gov, $796 billion has been disbursed as of the end of April, with $505 billion in the form of spending and $290 billion in tax cuts. CBO's latest estimate of the cost of the stimulus through 2019 is $830 billion. While some pieces are still going on, in particular food stamp spending and infrastructure spending, most provisions have run their course or were set to expire a few years ago.

The Latest Official Sequester Numbers

On Friday, the Office of Management and Budget (OMB) released its latest detailed report of how the cuts in sequestration will be allocated. The sequester was reduced by $24 billion under the fiscal cliff deal, so the cuts are slightly smaller as a percentage of full fiscal year spending than under OMB's previous report (with the exception of the Medicare cuts).

Peterson Foundation Analyzes the Fiscal Cliff Deal

The Peter G. Peterson Foundation has released a new report on the American Taxpayer Relief Act (ATRA) and its effect on the long-term outlook, similiar to our previous analysis of the medium-term and long-term debt paths after the deal.

How the Sequester Looks After the Fiscal Cliff Deal

Along with a two month delay until March 1, the fiscal cliff deal reduced the across-the-board cuts under sequestration for 2013 by $24 billion. Reducing the cuts from $109.3 billion to $85.3 billion was paid for with a reduction in discretionary caps in 2013 and 2014 and a tax gimmick to allow for more conversions to Roth IRAs. As a result, the remaining cuts under sequestration are now slightly smaller.

The Fiscal Speed Bumps Ahead

Although labeled as the "fiscal cliff deal," the American Taxpayer Relief Act (ATRA) enacted into law left many budget issues unresolved or only temporarily resolved. While the deal permanently addressed the expiring tax cuts and AMT patches, many other provisions were only extended temporarily. The sequester, one of the largest components of the cliff, was delayed for only two months.

A Roundup of Our Analysis on the Fiscal Cliff Package

Over the past week, CRFB has examined the composition, budgetary effects, and economic effects of the American Taxpayer Relief Act (ATRA), which replaced most of the fiscal cliff.

Al Simpson and Erskine Bowles on Meet The Press

While the American Taxpayer Relief Act has put off worries about the fiscal cliff for a month, it is clear that we missed a clear opportunity to do something about our unsustainable fiscal path. Fiscal Commission co-chairs and Fix the Debt co-founders Al Simpson and Erskine Bowles made it clear that more will need to be done on the debt after missing a "magic moment" in these fiscal cliff negotiations.

Eight Things You Didn't Know Were In the Fiscal Cliff Deal

The American Taxpayer Relief Act has been discussed at length in the news and on this blog, but much of the discussion has been focused on the big provisions in the law like the extension of most of the 2001/2003/2010 tax cuts on income below $400,000/$450,000, the extension of unemployment benefits, or the delay of the sequester.

The Post-Deal Long Term Outlook

So far, we have analyzed the fiscal cliff deal by looking at the good, the bad, and the ugly in the package, showing what the deal does to the budget, and estimating the short-term economic impact of the deal. This blog will look at the potential impact of the deal over the long term.

The Economic Effects of Avoiding (Much of) the Fiscal Cliff

Update: CBO confirmed our numbers today, finding a remaining fiscal contraction of about 1 1/4 percent.

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