Statement: James Horney, Director of Federal Fiscal Policy, on CBO’s Budget and Economic Projections

Publication Date: August 2007

Publisher: Center on Budget and Policy Priorities (Washington, D.C.)

Author(s): James Horney

Research Area:

Keywords: Economic projections; Fiscal future; Federal budget

Type: Report

Abstract:

The new budget and economic projections from the Congressional Budget Office confirm what thoughtful observers have said all year — the smaller deficit for this year does not mean the longer-term economic and budget outlook has significantly improved.  Despite White House claims, CBO does not find that the President’s tax cuts “are working” to boost the economy and revenues and dramatically improve the budget outlook.