According to CNN, the White House has floated a plan to deal with the fiscal cliff, one which would turn off a few provisions temporarily. Their plan? Turn off the sequester for six months in exchange for letting the upper-income tax cuts expire for a year. Thought of another way, it would repeal the spending cuts set to go into effect by extending the 2001/2003/2010 tax cuts for most people.
Following up on a project they did last year, the White House has released its 2011 Federal Taxpayer Receipt. This tool allows you to put in how much you paid in Social Security, Medicare, and income taxes last year and see how much of your tax dollars went to various areas of the budget. You can see how much of your money pays for defense, health care, income security, veterans benefits, international affairs, and, yes, also interest on the debt.
In our paper on the President's budget, we noted that the budget would only temporarily stabilize the debt as a percent of GDP. In fact, it would rise from roughly 77 percent in 2022 to 93 percent in 2035 and about 125 percent in 2050. Where did those numbers come from?
Big Day – Today is the big day in budget world. The White House released its fiscal year 2013 budget request. As you can imagine, CRFB has been busy going through the numbers and proposals. CRFB issued a statement earlier today with initial analysis and a paper examining the request is forthcoming. The budget would stabilize the debt at 76% of GDP in 2022.
President Obama gave his annual State of the Union address Tuesday night. The election-year speech contained a laundry list of proposals aimed to create jobs and promote economic growth. As is all-too-often the case in the midst of campaigns, the ideas put forth where aimed to appeal to certain constituencies with little discussion of their budgetary impact or if limited resources could be used more prudently.
President Obama's State of the Union address next Tuesday is now only a couple days away. In anticipation of the President's speech, we at CRFB have decided to bring back our awesome State of the Union fiscal bingo game, DEBT-O!
Play with your friends and keep track of budget-related words and terms used by the President. Needless to say, we hope our country's fiscal problems are a main focus of his speech.
Stating the Obvious – President Obama delivers the State of the Union address Tuesday evening. The SOTU is the annual rite where presidents attempt to hit the “reset” button and lay out their agenda for the coming year.