$1.5 Trillion More in Deficit Savings Would Stabilize Debt Over Coming Decade

February 11, 2013 at 10:57 am

Our updated analysis explains that policymakers could stabilize the public debt as a share of the economy over the coming decade by enacting $1.5 trillion more in deficit reduction, beyond the savings that the 2011 Budget Control Act, the “fiscal cliff” tax deal, and other legislation will achieve (see chart).

Here’s the opening:

Policymakers could stabilize the public debt over the coming decade with $1.5 trillion in additional deficit savings, according to the Center’s updated calculations, which are based on the new budget projections that the Congressional Budget Office released February 5.  Policymakers could achieve these savings with $1.3 trillion in policy savings (that is, spending cuts and tax increases), which would generate about $200 billion in savings in interest payments.  The $1.5 trillion in total savings would stabilize the debt at 73 percent of gross domestic product over the latter part of the decade.

Click here to read the full paper.

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More About Richard Kogan

Richard Kogan

Richard Kogan rejoined the Center in May 2011 after having served as a Senior Adviser at the Office of Management and Budget since January 2009. During his second tour at the Center, from 2001 to 2009, he served as a Senior Fellow specializing in federal budget issues, including aggregate spending, revenues, surpluses and deficits, and debt. Kogan is also an expert in the congressional and executive budget processes and budget accounting concepts.

Full bio | Blog Archive | Research archive at CBPP.org

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