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Friday, August 24, 2007
The Baseline
CBO's The Budget and Economic Outlook: An Update is a statute-directed baseline: "In accordance with long-standing procedures, CBO's projections assume that current laws and policies remain in place." So, the revenue figures in years 2010-2017 reflect a scenario in which the 2001/2003 tax cuts expire (as legislated). If Congress does nothing - that is let the sun set on tax cuts, the Treasury will see surpluses starting in 2012. But if those tax cuts are extended, it's a river of red ink.
| Federal Budget Surplus/Deficit(-) (billions of dollars) |
| 2012 | 2013 | 2014 | 2015 | 2016 | 2017 |
| Tax Cuts Expire | 62 | 36 | 65 | 85 | 58 | 109 |
| Tax Cuts Extended | -187 | -238 | -218 | -208 | -245 | -207 |
There's really nothing new here. I just wanted to point out - again - how expensive the Bush Revenue Reduction Program is.
Posted by Craig Jennings
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