In 2013, the benefits of 10 of the largest tax expenditures will equal 11.7 percent of income for households in the lowest income quintile, 9.4 percent for the highest quintile, and under 8 percent for the middle quintiles, CBO estimates.
The cost to the federal government of the TARP’s transactions, including grants for mortgage programs that have not yet been made, will amount to $21 billion, CBO estimates—$3 billion less than it previously projected.
A carbon tax’s effect on the economy depends on how lawmakers would use revenues generated by the tax. The tax would help reduce U.S. emissions but would have only a modest effect on the Earth’s climate without a worldwide effort.
Enactment of the President’s proposals would, CBO and the staff of the Joint Committee on Taxation estimate, result in deficits totaling $5.2 trillion between 2014 and 2023, $1.1 trillion less than the cumulative deficit in CBO’s baseline.
This blog post describes in more detail CBO's revised expectations about sources of people’s insurance coverage and the net budgetary impact of those revisions, as reflected in CBO's May 2013 baseline projections.
A robust increase in revenues projected over the next few years will help shrink deficits through 2015. But deficits are projected to rise later in the decade, partly because of pressures of an aging population and rising health care costs.
Following yesterday’s post about CBO’s Panel of Economic Advisers, the agency reports the current members of its Panel of Health Advisers. CBO’s work benefits greatly from the members’ expertise on a variety of health care issues.
CBO learns from many outside experts. Part of that learning comes through its Panel of Economic Advisers, which consists of distinguished economists with diverse areas of expertise. Today CBO announces the current members of that panel.
CBO plans to release its updated 10-year baseline budget projections on Tuesday, May 14. The agency’s analysis of the budgetary outlook under the President’s proposals will be available on CBO’s website Friday afternoon, May 17.
CBO examined three options for Fannie Mae and Freddie Mac to use principal forgiveness for certain underwater borrowers. How would those options affect the number of mortgage defaults, the federal budget, and the overall economy?