CBO’s Reestimate of the President’s Budget
CBO’s Reestimate of the President’s Budget
The Congressional Budget Office (CBO) has released its Preliminary Analysis of the President’s 2011 Budget. CBO’s report re-estimates the President’s budget using CBO’s economic and technical assumptions. Over the 2011-2020 period CBO’s deficit estimates are more that $1 trillion higher than those projected by the Administration. In 2015, CBO projects a deficit of nearly $800 billion, or over 4 percent of GDP, well above the President’s 3 percent of GDP target. Debt held by the public is projected to reach $20 trillion by the end of the decade— an increase of over 170 percent from its 2009 level according to CBO. As a result, interest payments on the debt are expected to quadruple between 2010 and 2020. For this year, CBO estimates a lower deficit than the President primarily due to differences in estimated spending. Starting in 2011, CBO’s deficit estimates are higher largely due to lower projected revenues, which reflect less optimistic economic assumptions than used by the Administration.
Further Reading
Budget Basics: What Is the Child Tax Credit?
The CTC provides assistance to families with children, and while it represents a relatively modest part of overall government spending, it is one of the largest tax expenditures.
Budget Basics: Tax Expenditures
Tax expenditures can come in the form of exclusions, exemptions, deductions, and credits.
What Are the Economic Costs of Child Poverty?
Child poverty is higher in the United States than in other wealthy countries. Studies show that it has quantifiable economic costs.