CRFB's MacGuineas on Tax Inversions

    CRFB Analyzes CBO’s Updated Budget, Economic Forecast

    The Cost of Delay on Social Security

    CRFB Updates Debt Simulator

CRFB's MacGuineas on Tax Inversions

CRFB President Maya MacGuineas appeared on Bloomberg TV to discuss tax inversions, which is when companies merge with or purchase overseas companies and move an American headquarters overseas. Watch the video here. Inversions are estimated to cost about $20 billion in lost corporate tax revenue over the next ten years. Read more on tax inversions and reform from MacGuineas here.

CRFB Analyzes CBO’s Updated Budget, Economic Forecast

 CRFB published a new 6-page paper summarizing CBO’s latest Budget and Economic Outlook. CBO estimates that federal debt will fall slightly to below 73 percent by 2018 but, beyond that, debt levels will resume their upward trend, reaching 77.2 percent of GDP in 2024. This growing debt is largely the result of a projected rise in spending levels not matched by equivalent increases in revenue.   

 

 The Cost of Delay on Social Security

 

Social Security is on a path to insolvency and unable to pay full benefits by 2033. A solution is achievable, but becomes much more expensive if our leaders in Washington procrastinate. Waiting until 2033 will increase the size of the required benefit cuts or tax increases by 50 percent. Read more here or try "The Reformer" to create your own plan for closing the shortfall.

  

CRFB Updates Debt Simulator

 

The long-term debt of the United States is rising to unprecedented – and unsustainable – levels. Everyone has an opinion on what should be done about America's finances. Here's your chance to try out your ideas. Read the blog.   

 

 

CRFB's Blog: The Bottom Line

CBO's recent budget projections reaffirm that our debt problems are significant. Entitlements are projected to grow, as a result of a retiring population and increased health care costs. Revenues are not projected to keep pace, leaving the budget with ever-growing deficits and increasing interest payments. By 2024, annual deficits will reach almost $1 trillion.

CBO's latest budget projections, while a slight improvement, are not particularly good news for those who wish to see a sustainable fiscal future. Debt would be on an upward path to 77 percent ten years from now and climbing thereafter. But as we noted in our analysis of the report, even this set of projections may be somewhat optimstic since it assumes that policymakers do not add to the debt by extending expiring provisions or repealing savings already in place (or if they do, they enact equivalent savings to offset the cost). While this may be close to reality in some cases, in others it isn't.

August 28, 2014
Good Deeds Punished as Crossroads Dings Dems on Debt Plan

Karl Rove’s Crossroads GPS has launched a series of political attack ads (see one here) going after Democrats for supporting Simpson-Bowles—the bipartisan plan to control the federal debt.

Now no one assumes political ads will be deep or nuanced policy discussions. But even with the low expectations, it is striking that Mr. Rove has chosen to go after Democrats not for ignoring runaway entitlement spending and mounting debt, or pretending we can fix the problems by taxing millionaires and corporate jets, but for being open to real entitlement reforms.

Moments ago, CRFB published a new 6-page paper summarizing CBO’s latest Budget and Economic Outlook. Under its current law baseline, CBO estimates that federal debt held by the public will reach 74 percent of GDP by the end of 2014 – a post-war record and more than twice the level at the end of 2007. Debt will fall slightly to below 73 percent by 2018 but, beyond that, CBO’s forecasts show that debt levels will resume their upward trend, reaching 77.2 percent of GDP in 2024.

Our paper also shows how the projections have changed since CBO's last update in April. Deficits are about $400 billion lower through 2024, and debt will be about one percentage point of GDP lower in 2024 than previously expected (77.2 percent versus 78 percent). Much of this drop is due to lower interest rates, which reduce the federal government's interest burden by $465 billion.

 
June 4, 2013
CRFB's latest interactive tool "The Reformer" is a handy game that allows users to design their own Social Security plan. Users can select from a wide variety of benefit and revenue changes to make the system sustainably solvent. The tool then shows the effect on the program's finances and benefit and tax levels.
September 27, 2011
If you've ever wanted to design your own corporate tax reform, now you can with our new Interactive Tax Reform Calculator. There is no question that the U.S. corporate tax system is badly in need of reform, and leaders in both parties have been pursuing this goal.

CRFB Projects

The Campaign to Fix the Debt is an unprecedented and bipartisan coalition that seeks to mobilize members of business, government, and policy communities to urge Congress and the President to enact a comprehensive debt deal.

The Moment of Truth (MOT) project is a non-profit, non-partisan effort that seeks to foster honest discussion about the nation’s fiscal challenges, the difficult choices that must be made to solve them, and the potential for bipartisan compromise that can move the debate forward and set our country on a sustainable path.