About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 Curtis S. Dubay & Scott A. Hodge, CBO Forecast Shows Rising Spending Continues to Drive Federal Deficits 1 (2006)

handle is hein.taxfoundation/ffegxz0001 and id is 1 raw text is: TAX(%~m FOUNDATION January 27, 2006 CBO Forecast Shows Rising Spending Continues to Drive Federal Deficits by Curtis S. Dubay and Scott A. Hodge Critics of the 2001 and 2003 tax legislation continue to blame those tax cuts for the deficits plaguing the federal government. Meanwhile, critics of government spending blame the deficit on a profligate Congress and a President who has signed spending bills into law that many of his supporters urged him to veto. The anti-spending crowd got new ammunition recently from the Congressional Budget Office (CBO). Released January 26, the CBO's new federal budget projections show that the tax cuts have not prevented tax revenue from growing rapidly. In fact, total tax revenues are projected to be $2.3 trillion in 2006, which is $321 billion more than in 2001, the last year of budget surpluses. One might expect such a revenue surge to eliminate any possibility of a federal deficit, but spending has grown at an astonishingly rapid pace, 42 percent in the last five years. As Table 1 below shows, spending has increased $786 billion, which means that for every additional dollar rolling into federal coffers between 2001 and 2006, $2.45 went out in new spending. Since 2001, the budget has gone from a surplus of $128 billion to a deficit estimated at $337 billion for 2006-a swing of $465 billion, and the White House actually predicts the deficit will be even higher. Table 1. Rising Spending Continues to Drive Federal Budget Deficits Difference Difference 2001 2006 (e) ($) (%) Revenues 1991 2312 321 16 Outlays 1863 2649 786 42 Deficit(-)/Surplus 128 -337 465 -- Source: Congressional Budget Office © 2006 Tax Foundation - www.taxfoundation.org

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most