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Off the Charts Blog: In Case You Missed It...
May 24, 2013
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Proposed Balanced Budget Amendment is Extreme by International Standards
Revised May 3, 2013
Some proponents of a constitutional balanced budget amendment have argued that other developed countries’ constitutions require balanced budgets, suggesting that such a requirement for the federal government would therefore be appropriate.[2] In reality, however, no European country — not even Germany or Switzerland, which are … -
Sequestration by the Numbers
March 22, 2013
The automatic budget cuts known as “sequestration” took effect on March 1. Under the requirements of the 2011 Budget Control Act (BCA) as amended by January’s American Taxpayer Relief Act (ATRA), both defense and non-defense programs were automatically cut, or sequestered, reducing total funding by $85 billion. While the press and public have focused on the programmatic effects of … -
Ryan Roundup 2013: Everything You Need to Know About Chairman Ryan’s Latest Budget
March 22, 2013
Below is a compilation of the CBPP analyses and blog posts on House Budget Committee Chairman Paul Ryan’s budget, which the House has passed. Overview/General Statement: Robert Greenstein, President, on Chairman Ryan’s Budget Plan March 12, 2013 “When House Budget Committee Chairman Paul Ryan released his previous budget last … -
Commentary: Murray’s More Evenhanded Approach to Deficit Reduction Contrasts Sharply With Ryan’s
March 14, 2013
The budget that Senate Budget Committee Chair Patty Murray released yesterday stands in sharp contrast to the one that her House counterpart, Paul Ryan, released on Tuesday. As I wrote Tuesday, his budget is extreme.[1] Hers is more balanced and appropriate to meet the nation’s economic and fiscal challenges. The … -
Statement by Robert Greenstein, President, On Chairman Ryan’s Budget Plan
March 12, 2013
When House Budget Committee Chairman Paul Ryan released his previous budget last year, I wrote that for most of the past half century, its extreme nature would have put it outside the bounds of mainstream discussion. It was, I wrote, “Robin Hood in reverse — on … -
Commentary: Senate Republican Proposal Fails to Address Key Sequestration Problems
February 28, 2013
A measure from Senators James Inhofe (R-OK) and Patrick Toomey (R-PA), which the Senate is expected to consider today, is presented by supporters as giving the President the needed flexibility to address the impending $85 billion in across-the-board spending cuts (“sequestration”), enabling him to cut some programs more and some … -
The Pending Automatic Budget Cuts
February 26, 2013
This report has been updated to reflect new data. In budget circles and beyond, all eyes are focused on the automatic budget cuts, known as “sequestration,” that are slated to take effect on March 1. But, in fact, March will bring two separate sequestrations — the first and well-known one of March 1 and a second and much smaller one … -
Commentary: A Look at the New Simpson-Bowles Plan
February 22, 2013
The new deficit-reduction plan that Alan Simpson and Erskine Bowles issued this week calls for $2.4 trillion of additional deficit reduction over the next ten years (through 2023), with roughly $2.1 trillion in policy changes and about $300 billion in resulting interest savings.[1] Of the policy savings, about $700 billion would come … -
Testimony of Jared Bernstein, Senior Fellow, Before the House Education and Workforce Committee
February 5, 2013
Chairman Kline and ranking member Miller, I thank you for inviting me to testify today on issues directly in the wheelhouse of this committee: education, skills, and jobs. My testimony begins by looking at the current jobs situation with an emphasis on educational investments. I then discuss ways in which recent budget cuts are threatening the … -
“Boehner Rule” Linking Debt-Ceiling Increase to Spending Cuts Is Dangerous Policy
January 25, 2013
House Speaker John Boehner has argued that “any increase in the debt limit has to be accompanied by spending reductions that equal or exceed it.”[1] The Budget Control Act (BCA) of 2011, which ended the previous debt-limit showdown, paired a $2.1-trillion increase in the debt ceiling with spending cuts of similar size.[2] … -
Separating the Debt Limit From the Deficit Problem
January 23, 2013
Some lawmakers speak of refusing to raise the debt limit and thereby risking default on obligations of the U.S. Treasury unless Congress and the President agree to harsh spending cuts, or of raising the debt limit for only a few months at a time and thereby fostering ongoing uncertainty. To be sure, the nation’s long-term fiscal … -
Achieving Further Deficit Reduction Solely Through Spending Cuts Entails Cutting Entitlements That Benefit the Poor and Middle Class While Shielding the Biggest Entitlements for the Wealthy
January 9, 2013
Since President Obama and Congress enacted the “fiscal cliff” budget deal, congressional Republican leaders have vowed not to raise a dollar more in taxes for deficit reduction. All further deficit reduction, they say, must come from budget cuts, primarily from entitlement programs. That, however, would spare the broad … -
Commentary: Next Round on the Deficit
January 7, 2013
In recent days, policymakers, pundits, and the media have debated whether the “fiscal cliff” budget deal was a victory or defeat for the President or congressional Republicans, progressives or conservatives, rich or poor, the economy or the deficit — you name it. Most of the commentary is unpersuasive, however, for … -
Two Sequestrations
December 28, 2012
This report has been updated to reflect new data. A prominent part of the “fiscal cliff” is the automatic, across-the-board funding reductions known as sequestration. Required under the 2011 Budget Control Act (BCA), these automatic cuts will occur in both defense and non-defense programs on January 2, 2013 — absent action by the … -
Non-Defense Discretionary Programs Will Face Serious Pressures Under Current Funding Caps
Revised December 6, 2012
President Obama and Congress achieved $1.5 trillion in discretionary program cuts over the next ten years primarily by setting tight caps on annual discretionary funding in the Budget Control Act (BCA) of 2011.[1] Congress adhered to those caps in 2012 in writing its appropriations bills for that year, but has yet to enact final … -
Statement of Robert Greenstein, President, in Response to Republican Budget Offer
December 4, 2012
House Republican leaders portray the deficit-reduction offer that they issued yesterday as a fair middle ground. It isn’t. On the crucial issue of revenues, the new Republican offer proposes $800 billion over ten years. Contrast that with the plan that Erskine Bowles, Alan Simpson, and some members of their commission issued in December 2010, … -
Congress Has Cut Discretionary Funding By $1.5 Trillion Over Ten Years
Revised November 8, 2012
Policymakers and budget experts generally agree on the need to reduce projected deficits and put the federal budget on a sustainable path. They have focused less attention, however, on the amount of deficit reduction that the 112th Congress and the President have enacted. Reductions in funding for discretionary (i.e., … -
What Was Actually in Bowles-Simpson — And How Can We Compare it With Other Plans?
October 2, 2012
Many policymakers have said that they “support,” “endorse,” or otherwise look favorably on “Bowles-Simpson” — the budget plan that Erskine Bowles and Alan Simpson issued in December 2010 as co-chairs of President Obama’s National Commission on Fiscal Responsibility and Reform.[1] But … -
Misguided “Fiscal Cliff” Fears Pose Challenges to Productive Budget Negotiations
Updated September 24, 2012
The sooner policymakers enact legislation to put the budget on a sustainable long-term path without threatening the vulnerable economic recovery, the better. But, as they prepare for an almost certain post-election "lame duck" session of Congress, policymakers should not make budget decisions with long-term consequences based … -
Romney Budget Proposals Would Necessitate Very Large Cuts in Medicaid, Education, Health Research and Other Programs
Updated September 24, 2012
Governor Mitt Romney’s proposals to cap total federal spending at 20 percent of gross domestic product (GDP) and boost defense spending to 4 percent of GDP would require very large cuts in other programs, both entitlements and discretionary programs. This update of an earlier analysis is based on updated economic and budget … -
History Shows Spending Cuts in Deficit-Reduction Packages “Stick”
June 27, 2012
Some opponents of including any revenue increases in a deficit-reduction deal — no matter how outweighed by spending cuts — argue that such cuts never “stick.” They claim — as Grover Norquist’s Americans for Tax Reform recently did — that “when bipartisan deals are struck promising to … -
Budget Plans Should Not Rely on "Dynamic Scoring"
Revised June 21, 2012
Some Members of Congress and outside groups are calling for the use of "dynamic scoring" to estimate the budgetary effects of major legislation, notably tax reform proposals. In February, for instance, the House passed a bill (H.R. 3582) requiring the Congressional Budget Office (CBO) and the Joint Committee on Taxation (JCT) … -
Joint Tax Committee: Raising Threshold for Bush Tax Cuts from $250,000 to $1 Million Would Lose $366 Billion — Nearly Half the Revenue
May 30, 2012
House Minority Leader Nancy Pelosi's proposal to extend President Bush's income tax cuts for households making up to $1 million a year would lose nearly half of the revenue that President Obama's proposal to extend the tax cuts only for households making up to $250,000 would raise, according to new estimates from Congress' Joint Committee on … -
Romney Budget Proposals Would Require Massive Cuts in Medicare, Medicaid, and Other Programs
Revised May 12, 2012
This report has been superseded by a new version, dated September 24, 2012, that reflects updated data and other information. Click to view the new analysis. Governor Mitt Romney’s proposals to cap total federal spending, boost defense spending, cut taxes, and balance the budget would require extraordinarily large cuts in other programs, both … -
House Budget Bills Would Target Programs for Lower-Income Families While Breaking Last Summer's Bipartisan Deal
Updated May 10, 2012
The House Budget Committee approved on May 7 a package of two bills that would alter the bipartisan deal between President Obama and congressional leaders that was reflected in last summer’s Budget Control Act (BCA). It would eliminate the “sequestration” (automatic cuts) in discretionary programs scheduled for 2013 as … -
Toomey Budget Similar to House-Passed Ryan Budget
May 9, 2012
The Senate may take up, as early as this week, a budget proposal from Senator Patrick J. Toomey (R-PA)[1] that is similar in most important respects to the budget resolution from House Budget Committee Chairman Paul Ryan (R-WI), which the House passed on March 29. [2] Like the Ryan budget, the Toomey plan (S. Con. Res. 37) would protect and extend tax cuts that … -
A Closer Look at Chairman Ryan's "Sequestration" Proposal
May 8, 2012
On May 7, the House Budget Committee approved a bill designed by Chairman Paul Ryan to alter three aspects of the debt-limit agreement that the President and congressional leaders reached last summer. The bill would produce a total funding level for discretionary programs in fiscal year 2013 that exactly matches the amount in the … -
Eliminating Social Services Block Grant Would Weaken Services for Vulnerable Children, Adults, and Disabled
May 3, 2012
To help generate the savings required by the House-approved budget, the House Ways and Means Committee voted on April 18 to eliminate the Social Services Block Grant (SSBG), a uniquely flexible funding source that helps states meet the specialized needs of their most vulnerable populations, primarily low- and moderate-income children and people who are … -
How the Across-the-Board Cuts in the Budget Control Act Will Work
Revised April 27, 2012
A successor piece to this paper is “The Pending Automatic Budget Cuts”, which was published on February 26, 2013, ahead of the March 1st sequestration. Note: OMB issued a report on September 14 that provides initial estimates and settles some legal issues with respect to the sequestration discussed in this analysis. We intend to update this … -
Cooper-LaTourette Budget Significantly to the Right of Simpson-Bowles Plan
March 28, 2012
Reps. Jim Cooper (D-TN) and Steven LaTourette (R-OH) unveiled a budget plan on March 27 that they call the “Simpson-Bowles Budget.” It departs significantly, however, from the Bowles-Simpson commission plan in key respects — raising taxes much less, cutting much more from non-security discretionary programs and less from defense and … -
Blog Post: Chairman Ryan’s Misleading Chart
March 27, 2012
House Budget Committee Chairman Paul Ryan recently summarized his new tax proposal this way: [W]e’re saying get rid of all the special interest loopholes and tax shelters that are disproportionately used by those higher income earners, get rid of those tax shelters, so you can lower tax rates for everybody, and make us better wired for economic growth and job creation. Chairman Ryan has also said that most tax-expenditure benefits go to high-income people. The lead tax chart in Chairman Ryan’s budget … -
Blog Post: Ryan Roundup, 2012: Everything You Need to Know About Chairman Ryan's Budget
March 23, 2012
Below is a compilation of the CBPP blog posts to date on House Budget Committee Chairman Paul Ryan’s new budget. Check back here frequently, as we will update this list as we put out new material. http://bit.ly/RyanPosts Overview/General Greenstein Statement March 21, 2012 "The new Ryan budget is a … -
Blog Post: Greenstein on the Ryan Budget
March 21, 2012
We’ve issued a statement from Robert Greenstein on the budget from House Budget Committee Chairman Paul Ryan. Here’s the opening: The new Ryan budget is a remarkable document — one that, for most of the past half-century, would have been outside the bounds of mainstream discussion due to its extreme nature. In essence, this budget is … -
Chained CPI Can Be Part of a Balanced Deficit-Reduction Package, Under Certain Conditions
February 22, 2012
A proposal included in several deficit-reduction packages — those from fiscal commission co-chairs Erskine Bowles and Alan Simpson, the Domenici-Rivlin panel, and the Senate "Gang of Six" — would shift from the regular or official Consumer Price Index (CPI) to the "superlative" or "chained" CPI when … -
President’s Budget Would Eliminate Separate Funding Caps for Defense and Nondefense Discretionary Programs
February 17, 2012
The President's budget proposes to alter the structure, although not the overall level, of the "discretionary caps" that limit annual appropriations bills. It would combine the existing caps — which separately constrain total defense and total nondefense appropriations — into a single overall cap on all discretionary … -
House Spending-Cap Bills Would Enact Radical Ryan Budget Into Law
February 6, 2012
The House may soon consider two bills (H.R. 3576 and H.R. 3580) that would limit federal spending to levels similar to those in the House-passed budget resolution, authored by Budget Committee Chairman Paul Ryan (R-WI). These bills are part of a package of ten bills that Chairman Ryan and other committee members recently … -
“Baseline Reform Act” Is a Step in the Wrong Direction
Revised January 24, 2012
On January 24, the House Budget Committee passed legislation introduced by Chairman Paul Ryan (R-WI), Rep. Rob Woodall (R-GA), and other members that would require the Congressional Budget Office (CBO) and the Office of Management and Budget (OMB) to assume, in constructing budget “baselines” that project funding levels for … -
House Bill Would Artificially Inflate Cost of Federal Credit Programs
Revised January 24, 2012
The House Budget Committee approved legislation on January 24 that would change the federal accounting of direct loans and loan guarantees in ways that would overstate the federal costs of those programs. As a result, the legislation also would overstate the size of federal deficits. The Federal Credit Reform Act of 1990 changed … -
Requiring Joint Budget Resolution Could Lead to Gridlock on Appropriations and Shift Power to the Executive Branch
Revised January 24, 2012
Representative Diane Black (R-TN) has introduced a bill (H.R. 3575)[1] that would bar Congress from considering annual appropriations bills — or any other legislation that would affect the budget — until Congress has passed, and the President has signed, a joint budget resolution for the fiscal year, regardless of how many … -
Biennial Budgeting: Do the Drawbacks Outweigh the Advantages?
January 20, 2012
House Budget Committee Chairman Paul Ryan (R-WI), Rep. Reid Ribble (R-WI), and others have introduced legislation (H.R. 3577) that would move the federal budget from an annual to a biennial cycle and make other changes in the congressional budget process. House Rules Committee Chairman David Dreier has introduced his own biennial … -
Senate’s Balanced Budget Amendment Could Force Deep Cuts in Aid to States
December 14, 2011
The Republican-sponsored version of a constitutional balanced budget amendment, which the Senate voted on today, would require enormous federal budget cuts, very likely resulting in dramatic reductions in federal grants to states and localities for services ranging from education to highway maintenance to public safety. The attached … -
The Senate’s Balanced Budget Amendment Would Require Extreme Budget Cuts
December 5, 2011
The constitutional balanced budget amendment (BBA) that the Senate is expected to consider this month would, like any version of a BBA, risk serious harm to the economy by requiring that the budget be balanced even during an economic downturn. But this BBA, in particular, would do far more damage because it also would prevent the … -
Republican Proposal To Pay For Payroll Tax Extension Would Increase Already Severe Cuts In Discretionary Programs
December 2, 2011
The plan of Senate Republican leaders to extend and expand payroll tax relief includes a smaller payroll tax cut and would provide less than half of the economic boost of the Democratic alternative. The plan claims to offset the costs of its payroll tax cut by freezing federal employee pay and cutting federal employment, but that claim is … -
Testimony: Robert Greenstein, President, on “A Balanced Budget Amendment: The Perils of Constitutionalizing the Budget Debate”
November 30, 2011
Thank you for the invitation to testify today. I am Robert Greenstein, president of the Center on Budget and Policy Priorities, a policy institute that focuses both on fiscal policy and on policies affecting low- and moderate-income Americans. We, like most others who analyze fiscal policy developments and trends, believe that the nation's … -
Amash Constitutional Spending Cap Would Radically Shrink Federal Budget
November 28, 2011
Rep. Justin Amash (R-MI) has introduced an amendment to the U.S. Constitution that would impose an extraordinarily severe cap on federal spending. The amendment would force radical shrinkage of the federal government, taking the nation down the road toward antigovernment activist Grover Norquist's vision of "starving the beast." If … -
How the Potential Across-the-Board Cuts in the Debt Limit Deal Would Occur
Updated November 22, 2011
The debt limit deal enacted on August 2 calls for about $900 billion in cuts in discretionary programs over the next decade and would impose further automatic, across-the-board spending cuts in many programs if Congress fails to enact an additional $1.2 trillion in deficit-reduction measures by January 15, 2012. Those across-the-board cuts … -
Latest Democratic Offer Includes Further Compromise,
Matches Overall Numbers of Toomey Proposal;
Republicans Reject It
November 18, 2011
Democratic members of the Joint Select Committee on Deficit Reduction (called by some the Supercommittee) submitted an offer last Friday in response to a plan put forward earlier in the week by Senator Pat Toomey and other Joint Committee Republicans. Various media institutions reported today that this latest Democratic … -
Program Cuts Under a Balanced Budget Amendment: How Severe Might They Be?
November 15, 2011
The constitutional balanced budget amendment that the House is expected to consider this week could force Congress to cut all programs by an average of 17.3 percent by 2018. If revenues are not raised (the House-passed budget resolution assumes no increase above current-policy levels) and all programs are cut by the same percentage, … -
Balanced Budget Amendment Highly Ill-Advised for Addressing Long-Term Fiscal Problems
November 14, 2011
The balanced budget amendment to the U.S. Constitution that the House will consider this week would be a highly ill-advised way to address the nation's long-term fiscal problems. It would threaten significant economic harm while raising a host of problems for the operation of Social Security and other vital federal functions. The … -
The Composition of Past Deficit-Reduction Packages – And Lessons for the Next One
November 14, 2011
Revenue increases were a part of every major deficit-reduction package in the 1980s and 1990s until the Balanced Budget Act of 1997. In several cases — notably in 1982 and 1984 (where they offset a portion of President Reagan's large tax cuts of 1981) — they dominated the package. In several other cases … -
Video: Jared Bernstein and James Horney Discuss the Perils of a Constitutional Balanced Budget Amendment
November 11, 2011
[A Constitutional balanced budget amendment] "is a really bad idea. First of all, we don’t really have to have a balanced budget. We certainly are running deficits right now, that are really large, now that’s largely because of the economic downturn and in fact it helps us to keep from going deeper into the economic hole, but in the long run, under current policies, we’re facing deficits that are way too large. We should get them down. We have to. But we don’t have to balance them."
"What we have to do is bring deficits down to a level, somewhere below 3% of GDP, that would keep our debt from rising constantly as a share of the economy. That’s the danger."
Duration: 6:12
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Plan From Toomey, Other Republicans Not a First Step Toward Balanced Deficit Reduction
November 10, 2011
Senator Pat Toomey and other Republicans on the Joint Select Committee on Deficit Reduction (“Supercommittee”) portray their new offer to raise close to $300 billion in revenues (under a plan to reduce deficits by about $1.5 trillion over ten years) as a significant concession, and some observers have suggested it represents a … -
Democrats Offer Significant Concessions
Revised November 1, 2011
The new deficit-reduction plan from several Democrats on the congressional Joint Select Committee on Deficit Reduction (the "supercommittee") marks a dramatic departure from traditional Democratic positions — and actually stands well to the right of plans by the co-chairs of the bipartisan Bowles-Simpson commission and the … -
Republican Plan Contains Minuscule Revenue Increase Alongside Deep Cuts in Medicare and Medicaid
October 31, 2011
The latest proposal by Republicans on the congressional Joint Select Committee on Deficit Reduction (the "supercommittee") contains virtually no new revenue and deep cuts in Medicare and Medicaid. In those respects, it represents little change from earlier Republican budget proposals. It stands in contrast to last week's … -
Statement: James R. Horney, Vice President Of Federal Fiscal Policy, on President Obama’s Budget Package
September 19, 2011
President Obama proposed a balanced and well-designed package today that would boost economic growth and jobs in the short run while stabilizing federal debt as a share of the economy after 2013. By keeping federal debt held by the public from growing as a share of the economy, the President's … -
Media Briefing: Examining the New 2010 Census Data on Poverty, Health Insurance Coverage, and Income
September 13, 2011
The Center on Budget and Policy Priorities held a conference call briefing for journalists Tuesday, September 13, at 1:30 p.m. (ET) to examine the new Census Bureau data for 2010 on poverty, health insurance coverage, and income trends that will be released that morning.
Duration: 21:12
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Statement: James R. Horney, Vice President Of Federal Fiscal Policy, on the Congressional Budget Office Update of Its Budget and Economic Outlook
August 24, 2011
Today’s Congressional Budget Office update of the nation’s budget and economic outlook reinforces the point that policymakers should not let legitimate concerns about deficits and debt in coming decades prevent them from pursuing policies to boost economic growth and increase jobs in … -
Statement: Robert Greenstein, President, on the Constitutional Balanced Budget Amendments Before the House
July 28, 2011
The House is scheduled to consider two versions of the constitutional balanced budget amendment later this week — H.J. Res 1 and H.J. Res 2. The first (H.J. Res 1) requires a two-thirds vote of the House and Senate for any legislation that includes a tax increase and also prohibits federal spending from exceeding 18 percent of GDP. Both of these … -
Press Release: Nobel Laureates and Leading Economists Oppose Constitutional Balanced Budget Amendment
Updated July 28, 2011
Organized Jointly With Phoebe Silag 202-775-8810 (office) 202-870-2644 (cell) A group of leading economists, including five Nobel Laureates in economics, today publicly released a letter to President Obama and Congress opposing a constitutional balanced budget amendment. The letter outlines the reasons why writing a balanced … -
A Constitutional Balanced Budget Amendment Threatens Great Economic Damage
Revised July 27, 2011
A balanced budget amendment to the U.S. Constitution — including the version that the House is expected to consider this week — would be a highly ill-advised way to address the nation’s long-term fiscal problems. It would threaten significant economic harm while raising a host of problems for the operation of Social … -
Balanced Budget Amendment Would Require More Extreme Cuts Than Ryan Plan
Revised July 27, 2011
The constitutional balanced budget amendment that the House is expected to consider this week is a highly ideological measure that would force Congress to enact the Republican Study Committee's extreme budget plan or something similar to it. Even the House-passed budget plan of House Budget Committee Chairman Paul Ryan would not pass … -
Statement: Robert Greenstein, President, on House Speaker Boehner’s New Budget Proposal
Updated July 27, 2011
House Speaker John Boehner’s new budget proposal would essentially require, as the price of raising the debt ceiling again early next year, a choice between deep cuts in the years immediately ahead in Social Security and Medicare benefits for current retirees, repeal of health reform’s coverage expansions, or wholesale … -
Gang of Six Plan Represents Useful Step Forward, Despite Troubling Elements
July 22, 2011
Some describe the Senate Gang of Six’s budget plan as a kind of fiscal Holy Grail. Others denounce it as a deeply unjust plan that cuts heavily into vital programs for the poor and the middle class while shielding the wealthy. Neither characterization withstands scrutiny. The plan is something of a mixed bag, with both very positive … -
Separating the Debt Limit from the Deficit Problem
July 21, 2011
Policymakers are risking a default on U.S. federal obligations because of a dispute over how to reduce budget deficits. The nation’s long-term fiscal path is unsustainable, and policymakers should address it in a timely and responsible way. But policymakers should not hold the debt limit hostage to approval of deficit … -
National Organizations Opposing the Balanced Budget Amendment
Updated July 14, 2011
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Testimony: Paul Van de Water, Senior Fellow, on Budget Enforcement Mechanisms
May 4, 2011
Mr. Chairman, Senator Hatch, and members of the committee, I appreciate the invitation to appear before you today. The federal budget is on an unsustainable path. If we continue current policies — including a further extension of the 2001 and 2003 tax cuts and AMT relief — deficits will remain high throughout the … -
Proposed Cap on Federal Spending Would Force Deep Cuts in Medicare, Medicaid, and Social Security
Revised April 15, 2011
A prominent proposal by Senators Bob Corker (R-TN) and Claire McCaskill (D-MO) to limit total federal spending to no more than 20.6 percent of the Gross Domestic Product (GDP), which is attracting increasing attention, may sound benign, but it would inevitably force enormous cuts in Medicare, Medicaid, and possibly Social Security. The … -
Ryan Plan’s “Path to Prosperity” Is Just for the Wealthy
April 6, 2011
House Budget Committee Chairman Paul Ryan’s name for his budget — “The Path to Prosperity” — is a cruel joke. One of this nation’s core beliefs is that if you work hard and act responsibly, you can get ahead, raise a family, and have a decent life. That was never more true than in the three decades after World War II, when the path to … -
Ryan’s Cowardly Budget
April 5, 2011
The Center has just issued a statement on House Budget Committee Chairman Paul Ryan’s budget plan and a brief analysis showing that the plan would get about two-thirds of its more than $4 trillion in budget cuts over 10 years from programs that serve people of limited means. . -
Statement of James Horney, Director of Federal Fiscal Policy, on CBO’s New Budget Estimates
Revised January 28, 2011
Correction: We have revised this statement to correct numbers in the third bullet. The Congressional Budget Office’s new report on the budget and economic outlook suggests three important points that might be lost in the current cacophony of calls to slash federal domestic … -
Podcast: The Impact of the New Budget Rules in the U.S. House of Representatives
January 11, 2011
Jim Horney, the Center’s Director of Federal Fiscal Policy, discusses the new budget rules in the U.S. House of Representatives.
Duration: 3:47
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Statement of Robert Greenstein, Executive Director, on the New House Budget Rules
January 5, 2011
Today’s vote by the new House majority to change the chamber’s rules, making it easier to pass tax cuts that increase the deficit, contradicts many Republican members’ anti-deficit rhetoric and marks a significant step away from fiscal discipline and toward the kind of rules that helped pave the way for the return of large deficits in the years … -
House Republican Rule Changes Pave the Way For Major Deficit-Increasing Tax Cuts, Despite Anti-Deficit Rhetoric
Updated January 5, 2011
House Republican leaders yesterday unveiled major changes to House procedural rules that are clearly designed to pave the way for more deficit-increasing tax cuts in the next two years. These rules stand in sharp contrast to the strong anti-deficit rhetoric that many Republicans used on the campaign trail this fall. While … -
Policy Basics: Introduction to the Federal Budget Process
Updated January 3, 2011
The way Congress develops tax and spending legislation is guided by a set of specific procedures laid out in the Congressional Budget Act of 1974. The centerpiece of the Budget Act is the requirement that Congress each year develop a "budget resolution" setting aggregate limits on spending and targets for … -
Changing Budget Process Won’t Reduce Deficit — Only Specific Policy Changes Can Do That
November 18, 2010
A commission funded by the Peter G. Peterson Foundation and the Pew Charitable Trusts has proposed far-reaching changes in the process by which the President and Congress develop and implement the federal budget.[1] The commission argues that the current federal budget process contributes to large deficits and that reducing the deficit … -
Podcast: Key Issues Facing Congress
November 16, 2010
Jim Horney, the Center’s director of Federal Fiscal Policy, discusses the key issues facing Congress during the lame duck session that began yesterday.
Duration: 4:45
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Sessions-McCaskill Amendment to Establish Discretionary Funding Limits Would Impose Severe Cuts on Domestic Programs
Revised April 19, 2010
We have since analyzed a later Sessions-McCaskill proposal. To view that analysis, click here. A proposal by Senators Jeff Sessions and Claire McCaskill to establish binding limits on discretionary appropriations for the next three years would necessitate cuts in nondefense discretionary programs that would total nearly $30 billion in fiscal year 2011 … -
Using Reconciliation Process to Enact Health Reform Would Be Fully Consistent With Past Practice
Updated March 3, 2010
The President and Democratic congressional leaders have determined that the best way to enact comprehensive health reform in the face of solid Republican opposition is to use the congressional reconciliation process to make a limited number of changes to the health reform bill that the Senate passed in December.[1] Despite charges by congressional Republicans and … -
Statement: Robert Greenstein, Executive Director, on the Statutory “Pay As You Go” Budget Proposal
January 27, 2010
This proposal marks a useful step toward restoring fiscal responsibility. A well-designed pay-as-you-go (PAYGO) rule can contribute significantly to the fiscal discipline needed to address the nation’s serious long-term budget problems, presuming that policymakers abide by it and pay … -
With Fully Offset Tax Extender Bill, House Advances Important Fiscal Principle; Senate Should Follow
December 9, 2009
The House tax extender bill represents a step forward in the important effort to reinstate a pay-as-you-go norm to federal legislation — a norm that played a key role in enabling the White House and Congress to turn large deficits into substantial surpluses in the 1990s The nation is on an unsustainable fiscal path, and … -
Podcast: The Budget Reconciliation Process
September 15, 2009
The budget reconciliation process in Congress is explained by Director of Federal Fiscal Policy, Jim Horney.
Duration: 4:43
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Ryan Substitute for Statutory Pay-As-You-Go
July 22, 2009
The House of Representatives is today considering legislation (H.R. 2920, as amended by a substitute proposed by Majority Leader Steny Hoyer) that would reinstate a statutory Pay-As-You-Go rule similar to the rule that helped produce the first federal budget surpluses in decades in fiscal years 1998 through 2001. Under the … -
Podcast: Robert Greenstein Testifies Before the House Budget Committee on PAYGO Legislation
June 26, 2009
Robert Greenstein testified June 26th on why..."pay-as-you-go discipline is important, why enactment of a statutory pay-as-you-go rule to reinforce Congressional rules can be beneficial, and why enactment of a statutory pay-as-you-go rule is not itself sufficient to achieve fiscal sustainability."
Duration: 7:11
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Testimony: Robert Greenstein on the “Pay As You Go” Budget Rule
Updated June 25, 2009
Mr. Chairman, Congressman Ryan, and members of the Committee, I appreciate the opportunity to appear here today to explain why I think pay-as-you-go discipline is important, why enactment of a statutory pay-as-you-go rule to reinforce Congressional rules can be beneficial, and why enactment of a statutory pay-as-you-go rule is … -
Joint Statement: Robert Greenstein and James Horney on the President’s “Pay As You Go” Budget Proposal
June 10, 2009
President Obama’s proposal to require policymakers to fully pay for all new entitlement increases and tax cuts, rather than deficit-finance them, is an important first step to restore fiscal responsibility. Critics charge that the pay-as-you-go, or PAYGO, proposal is riddled with … -
Scoring Health Legislation
April 1, 2009
The National Institute for Health Care Management Foundation has released a new edition of Expert Voices, Scoring Health Legislation by Paul N. Van de Water, PhD, Senior Fellow, Center on Budget and Policy Priorities. The fate of legislative proposals in the U.S. Congress often hinges on how much they are estimated to increase or decrease the federal budget deficit. Currently, the Congressional Budget Office … -
Policy Basics: Congress's “Pay-As-You-Go” Budget Rule
March 5, 2009
The pay-as-you-go rule, also known as PAYGO, is designed to encourage Congress to offset the cost of any legislation that increases spending on entitlement programs or reduces revenues so it doesn’t expand the deficit. Under PAYGO, Congress must pay for such legislation by reducing other entitlement spending or increasing other revenues. … -
Policy Points: "Tax Extenders" Bill the Latest Test of Congress's Commitment to Fiscal Discipline
June 10, 2008
“Tax extenders” legislation now before the Senate has become the latest battleground in the intensifying debate over whether Congress should abide by its “pay-as-you-go” (PAYGO) rules and pay for new tax and budget measures so they don’t expand the deficit. Opposition to abiding by PAYGO is also impeding congressional action to extend Alternative Minimum Tax relief … -
House AMT "Patch" Bill is Fiscally Responsible
November 7, 2007
Later this week, the House of Representatives is expected to vote on legislation that would “patch” the Alternative Minimum Tax for 2007 (H.R. 3996). This analysis highlights three praiseworthy features of the tax package, which was adopted by the Ways and Means Committee November 1. The cost of the package is fully offset. Its adoption by the … -
What Would It Say about Congress’s Priorities to Waive PAYGO for the AMT Patch?
November 7, 2007
In January the House of Representatives reinstated “Pay-As-You-Go” (PAYGO) budgeting rules, and in May the Senate followed suit. PAYGO requires Congress to offset the cost of any legislation that increases entitlement spending or reduces revenues. As a CBPP analysis released today explains, Congress to date has complied with the PAYGO rules.[1] Both houses of … -
Press Release: Joint Statement on the Need for Pay-As-You-Go Discipline
October 30, 2007
Issued Jointly With The four organizations joining in this statement have come together on a number of occasions in the past to express their concern about the threat that chronic deficits pose, and their support for Pay-As-You-Go rules (PAYGO) to help prevent the deficit situation from becoming worse. (See, for example, the statement of March 21, 2007 … -
House SCHIP Legislation Would Repeal Dubious “45-Percent Threshold” Provision
July 30, 2007
Legislation to extend the State Children’s Health Insurance Program and make various changes in Medicare, which the House is scheduled to consider this week, would repeal a so-called “45-Percent Threshold” provision affecting Medicare that was slipped into the 2003 Medicare prescription drug bill. Some lawmakers argue … -
Testimony: Robert Greenstein on Pay-As-You-Go Discipline Before the House Budget Committee
July 25, 2007
Chairman Spratt, Congressman Ryan, and members of the Committee, I appreciate the opportunity to appear hear today to explain why I think the pay-as-you-go discipline is important and appropriate, and why establishing a statutory pay-as-you-go rule to reinforce Congressional rules is a sound idea. My testimony will cover the following: … -
Forthcoming Medicare Trustees’ Report May Contain Dubious "Medicare Funding Warning"
April 20, 2007
While Medicare faces a serious long-term financing problem that must be addressed, the annual report of the Social Security and Medicare trustees to be released on April 23 may contain a dubious “Medicare Funding Warning” that is based on a deeply misleading measure of the program’s health. Under a last-minute provision slipped … -
The Alternative Minimum Tax, The President's Budget, and the Congressional Budget Resolutions
March 28, 2007
This week, the House of Representatives will consider the budget resolution that the House Budget Committee approved March 22. The House Budget Committee plan adheres to the Pay-As-You-Go (PAYGO) budget rules that have been in force in the House since January. These rules require that the cost of any legislation that increases entitlement spending or reduces revenue be offset. … -
Key Argument Against Applying Pay-As-You-Go To Tax Cuts Does Not Withstand Scrutiny
March 22, 2007
In early January the House of Representatives instituted a “pay-as-you-go” rule, under which entitlement expansions and tax cuts — including the extension of expiring provisions of law that expand entitlement programs or cut taxes — must be paid for through offsetting entitlement reductions or tax increases. (PAYGO rules do not … -
Joint Statement on the Need for Pay-As-You-Go Discipline
March 21, 2007
Issued Jointly With The four organizations joining in this statement have warned that large, chronic budget deficits pose a threat to the economic health of our nation. For that reason, we strongly support current efforts to reestablish and comply with pay-as-you-go discipline in the Congressional budget process, which would establish … -
Economic Effects of the Pay-As-You-Go Rule
March 19, 2007
The budget resolution approved March 15 by the Senate Budget Committee would reinstate in the Senate the Pay-As-You-Go budget rule that was in force during the 1990s. (The House of Representatives reintroduced the PAYGO rule several months ago.) PAYGO requires that the costs of any legislation that increases entitlement spending or decreases revenues be offset. Thus, if adhered … -
The New Pay-As-You-Go Rule in The House of Representatives
January 12, 2007
On January 5 the House of Representatives adopted a “Pay-As-You-Go” or PAYGO Rule as part of its package of Rules for the 110th Congress.[1] This memorandum briefly describes the rule and includes some “questions and answers” about how it is intended to work. Summary of the PAYGO Rule. The new House PAYGO rule establishes a point of order in the House of …
