cbo

Tax Hike for Wealthy Americans Won't Kill Growth

Allowing income tax rates to rise for wealthy Americans, and maintaining rates for the less affluent, would not hurt U.S. economic growth much in 2013, the Congressional Budget Office said on Thursday, stepping into a dispute between Republicans and Democrats over how to resolve the so-called "fiscal cliff."

Public Employee Benefits: The Numbers Behind the Debate

Let's take the politics out of the debate over public sector unions and their benefits, and look strictly at the figures. When you strip away the rhetoric, you can chart two macroeconomic trends and two patterns of fiscally foolish assumptions that have put both states and unions into this mess.

Where's an Extra $1 Trillion in Spending Going?

Remarkably, Washington spends $1 trillion more a year now than it did a mere three years ago. But trying to figure out where all that extra money is going is no simple matter. However, a lot of slicing and dicing does yield some answers -- none of which are very satisfying.

Hocus + Pocus = The 2012 Federal Budget Plan

Like all budgets, the federal government's spending plan is all about revenues and expenditures. Unfortunately, Uncle Sam is very good at grossly overestimating tax receipts and grossly underestimating spending. It's enough to make you wonder if any of it is real.

How Many Jobs Will Obama-GOP Tax Cut Deal Create?

The tax cut compromise between Obama and the GOP is now being touted as a back-door stimulus plan, one that some economists predict will create or save 3.1 million jobs. Unfortunately, the model on which those forecasts are based makes some flawed assumptions.

TARP Costs Fall to $25 Billion, CBO Says

The much-criticized Troubled Asset Relief Program (TARP) will end up costing the federal government about $25 billion, far less than previously expected. A report from the Congressional Budget Office (CBO) said that the costs will largely stem to funds given to American International Group (AIG), the auto industry and grants intended to avoid foreclosures.

Will Federal Health Care Costs Cripple Deficit-Cutting?

By some calculations, the Obama plan will help trim future budget gaps, but by others it'll only make things worse. The problem is, at this point no one knows for sure, and that makes sensible spending choices even harder to make now.

Social Security Fund Hurt by High Jobless Rate

Economists have said for some time that the Social Security fund would run out of money between 2035 and 2040. But the high unemployment rate is already taking a heavy toll on revenues this year. With fewer paychecks to tax, payouts are expected exceed collections in 2010, leaving the fund $29 billion in the red.