The NYT article on the new CBO budget projections tells us that CBO projects that if the Bush tax cuts are left in place, and the alternative minimum tax is adjusted to protect middle income taxpayers, deficits would return to more than $200 billion a year. When I look at the numbers (table 1-8), I see a deficit projection for 2017 of $360 billion. This can better be expressed as a not very scary 1.8 percent of GDP.
By the way, CBO's track record on picking up recessions and their budgetray impact is not very good. In January of 2001, after the stock market crash was already in progress, CBO had not adjusted downward its projections of capital gains tax revenue from the bubble peak levels. This led them to underestimate the size of the budget deficit over the 10-year budget horizon by more than $400 billion.
I’m writing to you today with a sense of urgency that I haven’t felt since I began my journalism career. As executive editor of The American Prospect, I’ve witnessed firsthand how independent journalism serves as a crucial bulwark against the erosion of our democratic institutions. Today, that role is more vital than ever. Can you step up today and show your support?
The winds of authoritarianism are blowing stronger. We’re seeing alarming signs of a coordinated effort to silence critical voices and undermine the very foundations that support progressive causes. As Bob Kuttner presciently wrote in our August 2024 issue, a weaponized IRS could attack the very foundations of the progressive movement. We need readers to step up and help us dig in for the long haul.
We’re falling behind in our spring fundraising campaign, and with so much at stake we can’t afford to come up short. If you value fearless, independent journalism that holds the powerful accountable and defends democracy, now is the time to step up. The American Prospect depends on reader support to stay in the fight. Pitch in today and help us close the gap. Please consider making a donation today.
–David Dayen, Executive Editor
Copyright 2025 | The American Prospect, Inc. | All Rights Reserved
