Posts Tagged ‘budget’

Fiscal Reality Check: Will Congress Pay for the Tax Extenders and the Doc Fix?

After it returns from Spring Break next week, Congress may face two big fiscal reality checks. It will have to decide whether to temporarily extend scores of expiring tax provisions and what to do about permanently adjusting the formula Medicare uses to pay physicians (the “doc fix”). Combined, these two measures would add about $65 billion to the […]

Forgotten but Not Gone: The Long-Term Fiscal Imbalance

Over the past few years, the long-term fiscal situation has improved. With the passage of the American Taxpayer Relief Act of 2012 (in early January, 2013), the Budget Control Act of 2011, the subsequent imposition of sequestration, and slowdowns in projections of health care expenditures, there have been a variety of sources of improvement. In […]

TheTaxVox 2013 Lump of Coal Award: Wait ‘Til Next Year Edition

Tax Vox proudly announces its seventh annual Lump of Coal Award for the worst tax and fiscal policies of 2013. The year was a curious mix of really bad ideas and dithering. After all, Congress’s finest moment may have been its December budget mini-deal—a decision that effectively ignored every one of the great fiscal questions facing […]

The Democrats Never-Ending Search for Tax Loophole Closers

Senate Democrats are circulating a list of a dozen tax “loopholes” they’d like to close as part of a budget package. It is unlikely that Republicans will agree to any of them except as part of broad tax reform, but it is worth taking a quick look at a few on their merits. Some represent […]

Time to Fix the Budget Process

Congressional negotiators are trying to craft a budget deal by mid-December. Fareed Zakaria’s Global Public Square asked twelve experts what they hoped that deal would include. My suggestion: it’s time to fix the budget process: Odds are slim that the budget conference will deliver anything big on substance. No grand bargain, no sweeping tax reform, […]

As Budget Talks Start, Beware the Bogus Revenue Hikes

As House and Senate budget negotiators sit down (eight months late), the inevitable issue of new revenues has already raised its head. Predictably, Democrats insist that any fiscal deal include new taxes. Equally predictably, Republicans demand that it must not. But behind the scenes, Washington’s wink-and-nod crowd thinks it has a solution: Raise new tax […]

The Illogic of the McConnell Debt Limit Rule

In the aftermath of the recent government shutdown and the painful negotiations that brought the country perilously close to defaulting on government debt, policy experts are searching for a way to avoid a replay of this crisis. After all, the recent congressional agreement only delays the next potential shutdown till January 15 and lifts the […]

One Modest Path to a No-Drama Budget Deal

The conventional wisdom is that next January, Congress and President Obama will be in exactly the same place they’ve been for most of the past three weeks—deep in government shutdown mode. The argument: The recent fiscal battles that ended with last night’s short-term deal to reopen the government and reauthorize Treasury borrowing  buys time but […]

It’s Groundhog Day Over the Debt Ceiling

If you recently heard the news that Congress is debating the merits of raising the debt ceiling, don’t think you have time-traveled back to 2011 or to 2012. In the absence of Congressional action, and barring some extraordinary measures, the debt ceiling is set to be breached sometime in the next several weeks, and the […]

The Costs of Debt Limit Brinksmanship

Today I had the chance to testify before the Joint Economic Committee about a perennial challenge, the looming debt limit. Here are my opening remarks. You can find my full testimony here. I’d like to make six points about the debt limit today. First, Congress must increase the debt limit. Failure to do so will […]