Research Report Dj Vu All Over Again
On the Dismal Prospects for the Federal Budget
Alan J. Auerbach, William G. Gale
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We provide new estimates of the federal budget outlook over 10-year and long-term horizons under three sets of assumptions: the Congressional Budget Office baseline, which assumes no changes in current law; an extended policy scenario, in which it is assumed that future Congresses act more or less like previous Congresses in extending expiring provisions; and the Administration budget. Under either the extended policy or the Obama policy scenarios, deficits are high and rising over the second half of the decade, despite the assumption that the economy is in full employment.
Research Areas Economic mobility and inequality Taxes and budgets
Tags Fiscal policy Campaigns, proposals, and reforms Income and wealth distribution Federal tax issues and reform proposals
Policy Centers Urban-Brookings Tax Policy Center