Blog posts

Blog Post

Changes in Borrowing Costs Can Have a Dramatic Impact on the Federal Budget

November 02, 2017
The federal government, like all entities that borrow money, pays for the privilege of doing so in the form of interest. A growing national debt therefore places a greater burden on the federal budget in the form of rising interest costs. The Congressional Budget Office (CBO) projects that under current laws, over the next decade the government will spend over $5 trillion solely to pay the interest costs for past borrowing.
Blog Post

Tax Overhaul Concerns

October 30, 2017

House Republican leaders are scheduled to unveil specifics of their tax overhaul plan this week, a plan that Republicans hope to push through Congress in a matter of weeks.

Blog Post

Both Sides Are Guilty of Budget Gimmicks

October 26, 2017
Policymakers in both parties often want to take credit for responsibly offsetting the costs of popular tax cuts or spending increases, but without actually making the hard choices necessary to do so. That would require higher taxes or lower spending in other parts of the budget. So politicians frequently employ budget gimmicks designed to hide the true costs of their decisions. For our leaders to address the nation’s fiscal challenges, these gimmicks need to stop.
Blog Post

PAYGO is an Important Standard

October 18, 2017
Most people agree that current fiscal policies are unsustainable. It is thus a matter of common sense to require those who want to enact new tax cuts or entitlement expansions -- both of which would enlarge the structural deficit -- to put forward spending cuts or tax increases to pay for them. This is the simple concept behind PAYGO (shorthand for Pay-As-You-Go).
Blog Post

Are You Up to the Budget Challenge?

October 11, 2017
Last month the U.S. national debt surpassed $20 trillion for the first time in history. It is clear that our nation’s fiscal path is unsustainable. Unfortunately, in Washington our elected officials are kicking the can down the road and avoiding the tradeoffs required to reduce projected deficits that will add to the debt. Our online budget exercise, The Federal Budget Challenge, will give you the chance to step up and try your hand at putting the nation on a better fiscal path.