Senate’s “Fiscal Cliff” Bill Adds $4 Trillion to Deficits: CBO —Reuters

Intent:  Not to Constrain Economic Growth Which Could Lead to Future Revenues

David Lawder and Kim Dixon report that The Congressional Budget Office on Tuesday said Senate-passed legislation to avert the “fiscal cliff” would add nearly $4 trillion to federal deficits over a decade, largely because it would extend low tax rates for almost all Americans.

By going over the fiscal cliff, the CBO had previously forecast that the higher taxes and lower spending would slash the fiscal 2013 U.S. budget deficit by more than half, to $641 billion from $1.1 trillion the prior year.

But in its analysis of the Senate-passed plan, the CBO said fiscal 2013 revenues would be $280 billion lower and spending $50 billion higher, resulting in a $330 billion deficit increase, for a total deficit of around $971 billion.

Under the CBO’s keep-taxes-unchanged scenario, the deficit would be $1.04 trillion for fiscal 2013.

Read the whole piece. 

The Debt Continues to Add Up