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Fiscal Tightening Effects.pdf

11-08-12-FiscalTightening.pdf
Preview of Fiscal Tightening Effects
🔗 Source: cbo.gov
📊 Size: 297 KB
👤 Author: Congressional Budget Office
⬇️ Downloads: 145

Summary

Substantial changes to tax and spending policies are scheduled to take effect in January 2013, reducing the federal budget deficit. If all of that fiscal tightening occurs, real GDP will drop by 0.5 percent in 2013, causing employment to decline and the unemployment rate to rise to 9.1 percent. Output would be greater and unemployment lower if some or all of the fiscal tightening was removed. Eliminating certain components of fiscal tightening would boost real GDP, including: eliminating automatic spending reductions (0.75 percent increase), extending most expiring tax provisions (1.5 percent increase), and extending the payroll tax reduction and emergency unemployment benefits (0.75 percent increase).

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Description

Substantial changes to tax and spending policies are scheduled to take effect in January 2013, reducing the federal budget deficit.

Technical Information

  • File Format: PDF
  • File Size: 297 KB
  • Pages: 16
  • Language: EN
  • Author: Congressional Budget Office
  • Total Downloads: 145
  • Last Updated: 3 days ago

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This PDF document about Fiscal Tightening Effects provides comprehensive information and guidance. Whether you're a beginner or advanced user, this resource offers valuable insights into Fiscal Tightening Effects.

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