Boy– that was awful being disconnected for so long (even longer than during Snowmageddon!). I’ll be back posting something of substance tomorrow (Tuesday) I hope. Can’t believe I missed CBO’s (preliminary) analysis of the President’s budget. I’ll write about it tomorrow, but you won’t be surprised about what I’ll emphasize. CBO Director Doug Elmendorf already pointed it out in his blog post from last Friday (emphasis added):
Under the President’s budget, the cumulative deficit over the 2011–2020 period would equal $9.8 trillion (5.2 percent of GDP), $3.8 trillion more than the cumulative deficit projected in the baseline. Of that difference, roughly $3.0 trillion stems directly from proposed changes in policy and another $0.8 trillion results from additional interest on the public debt. By far the largest budgetary impact would stem from the President’s proposals to index the alternative minimum tax (AMT) for inflation and to extend various tax provisions contained in the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA). Over the next 10 years, those policies would reduce revenues and boost outlays for refundable tax credits by a total of $3.0 trillion. Other policies would have smaller but still significant effects on the budget and would largely offset one another.