It’s not a big day for normal people, but today is exciting for fiscal policy wonks because the Congressional Budget Office has released its new 10-year forecast of how much revenue Uncle Sam will collect based on current law and how much the burden of government spending will expand if policy is left on auto-pilot.
Most observers will probably focus on the fact that budget deficits are projected to grow rapidly in future years, reaching $1 trillion in 2024.
That’s not welcome news, though I think it’s far more important to focus on the disease of too much spending rather than the symptom of red ink.
But let’s temporarily set that issue aside because the really big news from the CBO report is that we have new evidence that it’s actually very simple to balance the budget without tax increases.
According to CBO’s new forecast, federal tax revenue is projected to grow by an average of 4.3 percent each year, which means receipts will jump from 3.28 trillion this year to $4.99 trillion in 2026.
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5 comments:
The CBO uses a false number for the projected GDP growth.
How are taxes going to increase by 4.3% without tax increases, while the economy won't be growing by 4.3%?
They purposely inflate the rate of inflation to make the budget look right. Liars all of them.
My head hurts with that many zeros.
I believe them! I think it can be done with tax decreases. But not with the current democrats and republicans in office.
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