The Congressional Budget Office has considered the effect on real GDP growth in 2013 under two alternative fiscal policies:
Under current law, the federal budget deficit will fall dramatically between 2012 and 2013 owing to scheduled increases in taxes and, to a lesser extent, scheduled reductions in spending—a development that some observers have referred to as a “fiscal cliff.
If current policies remain in place, the Congressional Budget Office (CBO) estimates the U.S. budget deficit for 2011 will be close to $1.5 trillion, or 9.8 percent of GDP. While CBO "benchmark" projections see a short-term, gradual... Read Post
Say at the end of 2012, Congress can’t strike a budget deal and we reach the dread “fiscal cliff.” Taxes go up, spending gets slashed. Would the U.S. economy fall into recession? The Congressional Budget Office sure thinks so. But R... Read Post
In a report released this morning, the Congressional Budget Office offered two scenarios for long term federal borrowing through 2035. Current law remains in effect: Congress allows the Bush tax cuts to expire, the alternative minim... Read Post