Continuing our analysis of the President's FY 2014 budget proposal, we turn to how the President's budget would affect long-term revenues and spending. As we said last Monday after looking at the GAO's long-term projections of debt and deficits, our debt problem looks much more daunting when projecting beyond the standard ten-year window. With that in mind, it is useful to look at OMB's 75-year projections of the President's Budget.
Our next blog post in our series analyzing the President's budget will look at where the budget leaves revenue and spending by the end of the decade and the composition of that spending and revenue.
A common affliction of the federal government in recent years has been the many temporary extensions of certain spending or tax benefits. Because treating these provisions as if they will not be permanent artifically lowers their cost, they have become increasingly popular lately.
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.
Update: The table and text have been updated to include the baselines in the House and Senate budget resolutions.
A common source of confusion when budgets are released is how they calculate their savings. It seems that for every budget that comes out there is a different baseline from which savings are measured. The President's budget is no exception.
While we will have detailed analysis of various parts of the President's budget throughout the week and into next week, it is important to first show the big picture of where the budget takes us. The President's budget contains a $1.8 trillion deficit reduction package that is meant to reflect the final White House offer during the fiscal cliff negotiations. When other initiatives and repeal of the sequester are included, the total savings are $1.4 trillion compared to OMB's adjusted baseline.
President Obama has just released his FY 2014 budget proposal, putting forward his last offer in the negotiations leading up to the fiscal cliff, in addition to several new spending and investment priorities that are offset with additional revenues.
We will have further analysis in the coming days, including a comparison between the President's budget and the House- and Senate-passed budget resolutions.
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.
The FY 2014 President's Budget will not be released until next Wednesday, April 10th, but already some details about what will be in the budget have been surfacing.