The International Monetary Fund recently published a study on budget institutions in G-20 countries. The study takes stock of these countries' progress in reforming their budget institutions and examines whether having strong budget institutions has helped countries tackle their budget challenges in the aftermath of the financial crisis. While it is difficult to measure the impact of institutional arrangements on budgetary outcomes, the IMF's verdict is that they do matter.
A new report from the Center for American Progress argues that roughly 60 percent of the sequester should be waived in light of the savings from the fiscal cliff deal in January, which allowed taxes to rise on the top 1 percent or so of Americans.
The Campaign to Fix the Debt has recently released the results of a new national telephone poll that found broad support for a comprehensive deficit reduction plan that includes tax reform, sequester replacement, and structural changes to Social Security and Medicare. The bipartisan poll was conducted by Anzalone-Liszt-Grove Research and Voter Consumer Research with 800 likely voters.
Although talks between the White House and Senate Republicans now appear to be in hiatus, a few interesting articles have offered new insights into what they were trying to accomplish. Among these tidbits, a mysterious savings target -- $518 billion -- has emerged with many folks unclear where that number came from.
Today, a piece in the Financial Times shows the unnecessary damage being done by the ongoing sequester -- in this case, sharp cuts to federal support for low-income housing.
A New York Times piece today lays out a possible "mini-bargain" to move past the debt ceiling and expiration of government funding.
CRFB President Participates in Center for American Progress Event: "Is It Time to Hit the Reset Button on the Fiscal Debate?"
Today, the Center for American Progress (CAP) hosted a panel discussion featuring Center on Budget and Policy Priorities Senior Fellow Jared Bernstein, CAP President Neera Tanden, Concord Coalition Executive Director Robert Bixby, and President of the Committee for a Responsible Federal Budget Maya MacGuineas.
After finishing its preliminary annual review of the U.S., the International Monetary Fund (IMF) concluded the U.S. could spur additional economic growth by adopting a balanced and more gradual pace of deficit reduction, while not abandoning fiscal sustainability. Possibly as a result of the automatic spending cuts enacted by the sequester, the IMF has lowered its growth forecast for the U.S. economy in 2013 to 1.9 percent from 2.2 in 2012.
In a new paper, the Center for American Progress's Michael Linden makes the case for resetting the fiscal debate. His main point is that given improving deficit projections, the recent experience of developed countries, and developments in academic research, it is wise to shift the focus away from a large deficit reduction agreement.
Regular readers of The Bottom Line are probably familiar with our goal of putting the debt on a downward path as a share of the economy over the long term. Much of the conversation on fiscal policy recently has centered around arguments against "austerity," but smart deficit reduction is different.