Statement: James Horney, Director of Federal Fiscal Policy, Center on Budget and Policy Priorities, on OMB’s Mid-Session Review

Publication Date: July 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:

Large mid-year increases in revenue estimates for the current year are not surprising at this point in an economic expansion; history shows they are the norm, not the exception. Such increases occurred in the 1980s following tax cuts, and in the 1990s following tax increases. Not only is today’s re-estimate not a surprise, it tells us nothing about the effects of the 2001 and 2003 tax cuts on the economy.