CBO: Fiscal Accord Will Add $4 Trillion Debt, Despite White House Claims

Wednesday, 02 Jan 2013 04:54 PM

By Newsmax Wires

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The new fiscal-cliff legislation will add $4 trillion to the government’s debt over the next decade, according to the non-partisan Congressional Budget Office (CBO).

That’s quite a contrast with the White House, which estimates the agreement will reduce debt by about $737 billion, thanks mainly to higher taxes on the wealthy and including $107 billion in interest savings, Politico reports.

To generate its estimate, the CBO used its March “current law” baseline, which assumes all of the 2001-03 tax cuts ended Dec. 31. That means the higher taxes to be paid by the wealthy under the new deal don’t count for debt reduction. And the decision to make permanent tax cuts for all but the wealthy counts as adding to the budget deficit.

Not surprisingly, the White House wants to focus on “current policy,” not “current law,” so that the tax increases on the wealthy will count as deficit reduction.

Those who think the CBO’s projections are too harsh also say it should take into account the fact that the budget agreement will help boost economic growth and that the deal could lead to comprehensive tax reform.

Meanwhile, Republicans are beginning to focus on the debt-limit increase that President Barack Obama will have to request soon. "Our opportunity here is on the debt ceiling," Republican Senator Pat Toomey of Pennsylvania told MSNBC.

He says the GOP can use the debt limit as leverage to achieve its budget goals. "We Republicans need to be willing to tolerate a temporary, partial government shutdown, which is what that could mean."


© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Dominic Carter: Giuliani Was Right About Blacks Killing Blacks

Tuesday, 25 Nov 2014 17:10 PM

When former New York City Mayor Rudy Giuliani said on NBC's "Meet the Press" that 93 percent of blacks in America are ki . . .

Rand Paul: Culpability for Ferguson 'Mostly' on Politicians

Tuesday, 25 Nov 2014 17:06 PM

Sen. Rand Paul is renewing his call for reform of the nation's criminal justice system, placing "culpability for the tra . . .

Ferguson Mayor Criticizes Slow Guard Response to Fiery Riot

Tuesday, 25 Nov 2014 16:53 PM

Ferguson Mayor James Knowles III said the failure of the Missouri National Guard to protect his town from rioting last n . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved