Research Report (Still) Tempting Fate
Alan J. Auerbach, William G. Gale
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We present new estimates of the budget outlook, incorporating the impact of the recent debt-limit deal and the latest projections by the Congressional Budget Office and the Medicare and Social Security Trustees.Although the official budget figures have improved relative to a year ago (as a result of the debt-limit deal and lower interest rate projections), realistic budget projections show that the medium-term outlook remains troublesome and the long-term outlook remains unsustainable. Policymakers and the public will eventually be forced to address these issues.Addressing them soon rather than later will allow for more reasonable and gradual adjustments.
Research Areas Taxes and budgets
Tags Federal budget and economy
Policy Centers Urban-Brookings Tax Policy Center