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Shhhh… The Midsession Review Came Out Today

July 23rd, 2010 . by economistmom

The Obama Administration’s Midsession Review for Fiscal Year 2011 came out this (Friday) afternoon around 3 pm, but it might as well have come out in the dead of night during August recess, as silently as it was presented.  No press conference, no press release, no blog post from OMB director Peter Orszag.  Only the pdf file posted on the OMB website, if you knew to look for it there.

Of course, the news wasn’t good, but it wasn’t unexpectedly bad either.  (I guess it just wasn’t much news all around.)  Deficits are now expected to be higher over the next few years (although slightly lower for the current year) than the Administration projected back in February, largely due to lower revenue estimates.  What was a 3.9 percent of GDP deficit for fiscal year 2015 is now a 4.0 percent of GDP deficit, so the President’s deficit-reduction commission is still expected to come up with an extra around-1-percent of GDP in policies to reduce the deficit.

More later this weekend if in digesting the report more completely, I find some more newsworthy tidbits.

6 Responses to “Shhhh… The Midsession Review Came Out Today”

  1. comment number 1 by: VAT Brat

    Economistmom,

    I listened to that Brookings talk you participated in with Steven Moore, Paul Ryan, and others. Interesting analogy with weight loss: raising taxes is like exercise and spending cuts is like dieting.

    Steven Moore was unbearable to listen too, but he confirmed my worst fears about intransigence on tax increases. I don’t believe he speaks for most Republicans, but I did become more convinced that Republicans just cannot support tax increases because they don’t believe that they will be directed toward deficit reduction.

    It’s what I’ve been saying for many months now.

    It’s why I think that we must remove control from Congress over raising the ceiling on public debt . If that is done, then the main excuse that Republicans give for refusing to deal on cutting spending and raising taxes goes away.

  2. comment number 2 by: SteveinCH

    Is there any reason or any historical precedent to believe that tax increases will be used to reduce the deficit? I can’t think of one.

  3. comment number 3 by: TonyinMD

    @SteveinCH: The 1993 tax increase.

  4. comment number 4 by: SteveinCH

    Tony,

    If you can guarantee me a Republican Congress for the next 10 years, maybe we can talk.

  5. comment number 5 by: TonyinMD

    …With a Democratic President, of course… There’s a high probability that starts in January.

  6. comment number 6 by: SteveinCH

    My problem Tony is like the 93 experience, divided government always ends and, when it does, fiscal discipline goes out the window.

    My point is, if fiscal discipline is going to go out the window, I’d like to start from a lower point in terms of spending rather than a higher point.