Topic: U.S. Congressional Budget Office

Spending cuts: As Washington frets, Wall Street shrugs (so far)

Spending cuts set to pummel most government programs starting today so far haven't had much effect on investors. The $85 billion in across-the-board 'sequestration' cuts were expected to cause airport delays, disrupt public services and result in lower pay or layoffs for millions of government workers.

Ben Bernanke: Bring down the federal debt, don't just 'stabilize' it

Reducing the debt-to-GDP ratio is the most important long-term fiscal policy for the US, said Fed Chairman Ben Bernanke during his semiannual report to Congress.

Sequester 101: What happens if $85 billion in cuts hit on March 1

The sequester is a complex concept with a tortuous history. Here are the basics on the automatic spending reductions set to kick in March 1.

Tax VOX Bowles-Simpson II: a new plan to avoid the sequester

The Bowles-Simpson framework seems a plausible alternative to the current game of sequester-and-gridlock, Gleckman writes.

Tax VOX Spending cuts: five reasons allowing sequestration is bad policy

Spending cuts will begin to automatically take effect in two weeks, Harris writes, and allowing the sequester's automatic spending cuts to happen would be terrible policy.

State of the Union 101: How much in Medicare cuts did Obama put on table?

Obama didn't offer as much in savings from Medicare cuts as did the Simpson-Bowles deficit reduction commission. But his State of the Union message outlined ways to shave a good chunk of change from Medicare costs. Here's how.

Donald Marron The balanced budget amendment's $300 billion error

The Senate Republicans balanced budget amendment contains a striking error, Marron writes.

‘Grand bargain’ on deficit reduction: RIP?

President Obama's State of the Union address did nothing to address the nation's long-term fiscal imbalance, say deficit hawks. But Republicans share the blame. 

Robert Reich Why the budget deficit is not 'the transcendent issue of our time'

The Republican’s biggest economic lie is that the budget deficit is, in Sen. Mitch McConnell's words, “the transcendent issue of our time,” Reich writes. The transcendent issue is jobs and wages, he adds.

Tax VOX What you should know about the budget outlook

Gale offers three reactions to the Congressional Budget Office's latest Budget and Economic Outlook. While we do not face an imminent budget crisis, Gale writes, the data in the Outlook imply that we are not out of the woods.

Tax VOX Can the income tax fund the government we want?

The income tax’s ever-narrowing base simply cannot support the nation’s spending demands, Gleckman writes.

Recession averted, but rising debt still a threat, CBO warns

The CBO forecast on the economy describes the dilemma lawmakers face. Their successful measures to avoid a recession have left in place an expected dangerous rise in the national debt.

Tax VOX The risks of aiming low in deficit reduction

Some on the left are defining successful deficit reduction too modestly, Penner writes, threatening to leave future fiscal policy perilously constrained.

Tax VOX Budget crisis: five ways the parties increasingly disagree

Republicans and Democrats are setting out fiscal goals that are light-years apart, Gleckman writes. Here are five stumbling blocks to a budget deal:

Tax VOX 'Fiscal cliff' II: predictions about the sequel

The "fiscal cliff", which was to be the ultimate forcing mechanism, instead became something of legislative self-parody, Gleckman writes.

Opinion Love it or loathe it, the 'fiscal cliff' deal brought compromise

As unsatisfying as the bargain is in substance, its achievement reaffirms an essential element of America’s democracy – the need for compromise. That aspect of the 'fiscal cliff' deal will be needed as the US approaches the debt ceiling and debate on spending cuts and tax reform.

Full steam ahead? How economy might look if 'cliff' deal is struck. (+video)

If Washington can strike a bargain on the 'fiscal cliff,' some tax hikes and spending cuts would slow the economy. But rising consumer confidence could keep the slow recovery chugging along.

Tax VOX What changing the consumer price index would mean for taxpayers

Tax VOX The toughest obstacles in the budget debate? Entitlements.

Somehow we must find ways to gain control over spending on Medicare and Medicaid, Penner writes.

Tax VOX How Eisenhower and Congressional Democrats balanced the budget

President Dwight Eisenhower truly believed that budgets should be balanced, and his 1960 budget incorporated severe spending restraint and only minor tax increases, Penner writes.

Will the Senate pass the $60 billion Sandy recovery bill?

In the midst of debt and deficit negotiations in Washington, politicians are carefully considering all aspects of the proposed billion-dollar superstorm Sandy recovery bill.

Raising Medicare's eligibility age: How much money would it save?

A full account of the impact of raising Medicare's eligibility age to 67 must also include the added costs to other expensive programs, as some seniors switch to Medicaid or seek government subsidies for private insurance.

Boehner: Don't make Christmas plans, 'serious differences' remain in 'fiscal cliff' talks

Boehner's comments came as top Democrats pushed back on GOP demands for tough steps like raising the Medicare eligibility age and curbing the cost-of-living adjustment for Social Security.

Opinion 'Fiscal cliff' or not, tax reform is easier said than done

As part of any deal on the 'fiscal cliff,' Congress will likely take up comprehensive tax reform. That's a worthy goal, but it will involve more political and economic pain than most would like to admit. Every line in the tax code has its own constituency and rationale.

'Fiscal cliff' talks: Could they sink US job market?

The 'fiscal cliff' talks are about more than taxes. How they are resolved could have a significant impact on the US job market, experts say.