Tag: ‘deficit reduction’

Dynamic Scoring Forum: Three Things You Should Know About Dynamic Scoring

By :: February 27th, 2015

This is one of a series of guest TaxVox blog posts discussing dynamic scoring. The House recently changed the rules of budget scoring: The Congressional Budget Office and the Joint Committee on Taxation will now account for macroeconomic effects when estimating the budget impacts of major legislation. Here are three things you should know as […]

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CRFB's New Online Budget Simulator

By :: June 26th, 2014

Neither Congress nor the White House seem to care much about the budget deficit these days, but if you do, the Committee for a Responsible Federal Budget has created an updated online budget simulator that lets you try to get a handle on fiscal policy. The goal of this online game is to stabilize the […]

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Forgotten but Not Gone: The Long-Term Fiscal Imbalance

By :: March 7th, 2014

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 […]

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The Cruel Political Paradox of Deficit Reduction

By :: February 4th, 2014

I was chatting the other day with a fellow budget wonk who noted the cruel paradox of fiscal politics: When the economy is bad, deficits rise and the public support for reducing them grows. Yet a poor economy is the worst possible time to raise taxes and cut spending. By contrast, a period of strong growth […]

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The Baucus-Hatch “Blank Slate” Approach to Tax Reform Could Be Revolutionary

By :: July 3rd, 2013

No one quite knows what exactly Senate Finance Committee Chairman Max Baucus (D-MT) and Ranking Member Orrin Hatch (R-UT) mean when they say they will rely upon a “blank slate” as the starting point for tax reform discussions. But done carefully and with political artistry, taking advantage of their unique power, Baucus and Hatch could […]

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What’s the Mix of Spending and Revenue in the President’s Deficit Reduction Proposal?

By :: April 12th, 2013

President Obama’s budget identifies a group of policies as a $1.8 trillion deficit reduction proposal. I found the budget presentation of this proposal somewhat confusing; in particular, it is difficult to see how much deficit reduction the president wants to do through spending cuts versus revenue increases. After some digging into the weeds, I pulled […]

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Sequester, We Hardly Knew Ye

By :: March 1st, 2013

I suspect that by early next week, the sequester will be old news. We’ll be on to the next crisis—the impending government shutdown scheduled for just a month from now. And there may be good reason for that—any deal to avoid the shutdown will almost surely replace the effects of the sequester, at least for […]

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The Sequester is Not Too Big, It is Too Stupid

By :: February 28th, 2013

The latest chapter in Washington’s never-ending fiscal drama is about to play out in tomorrow’s sequester–a word most Americans should never have had to learn. For all the partisan noise about these automatic spending cuts, it is important to keep in mind that they are both relatively small and very stupid. First, the size. As the […]

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How to Control Entitlements: A Challenge Ike Did Not Face

By :: December 18th, 2012

Yesterday, I described President Eisenhower’s remarkable success in turning  a large deficit in fiscal 1959 into a balanced budget in 1960.  It was one of the biggest fiscal consolidations since World War II.  Although it was a very different time, there are lessons relevant to today’s fiscal challenges.  One is that a president need not […]

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How Eisenhower and Congressional Democrats Balanced a Budget

By :: December 17th, 2012

The election results did not change the political status quo, and the status quo has not been conducive to solving the nation’s festering fiscal problems.  In his victory speech President Obama pledged to seek bipartisan cooperation in solving problems, though  it is not going so well so far.  But we better hope that in the […]

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