Congressional Budget Office (CBO)

The Federal Deficit Is Actually Shrinking

Scott Horsley — Wed, 01 May 2013 20:37:00 +0000

During the housing bust, taxpayers were forced to bail out mortgage giants Fannie Mae and Freddie Mac. But thanks to the real estate recovery, Fannie Mae could end up paying tens of billions of dollars back to the Treasury this summer.

That's just one of the factors behind a better bottom line for the federal government.

$85 Billion Versus $42 Billion: The New Sequester Argument

Alan Greenspan and Alan Greenblatt — Thu, 28 Feb 2013 18:45:00 +0000

Just how much will the sequester cut? It depends on whom you ask.

The White House has been saying spending will be reduced by $85 billion this year, unless the automatic spending cuts set to take effect Friday are averted.

The Congressional Budget Office, however, just released a new report saying the cuts will only amount to $42 billion.

Why do they differ so much?

They don't, really.

Economy To Slow This Year As The Government Tightens, CBO Says

Mark Memmott — Tue, 05 Feb 2013 19:03:00 +0000

While the economy will benefit from continued improvement in "underlying" conditions, the federal government's push to tighten its spending will slow overall growth in 2013, the Congressional Budget Office projects.

In an updated "Budget and Economic Outlook" reported released Tuesday afternoon, the agency forecasts:

-- 1.4 percent growth in gross domestic product this year, vs.

Fiscal Cliff Would Only Dent The Deficit

Tamara Keith — Tue, 13 Nov 2012 08:31:00 +0000

Virtually everyone agrees that allowing the nation to fall off the fiscal cliff would be a bad thing.

Government programs would be cut, taxes would rise significantly on a majority of Americans, and according to the Congressional Budget Office, the economy would fall back into recession.

But get this: Even if all of those things happen, there would still be a budget deficit.

When it comes to describing the fiscal cliff — that combination of tax increases and spending cuts that would automatically begin in January unless Congress and the president step in — federal budget guru Stan Collen

CBO Warns Again: Ignoring Fiscal Cliff Could Result In Recession

Thu, 08 Nov 2012 22:41:00 +0000

The so-called fiscal cliff is a double-edged sword, the nonpartisan Congressional Budget Office says in a new report issued today.

Why? Ignoring the huge tax increases and spending cuts set to take effect at the beginning of the year "will probably cause the economy to fall back into a recession."

But: "They will make the economy stronger later in the decade and beyond."

The fiscal cliff, by the way, is a self-inflicted wound.