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Old 08-10-2011, 07:14 AM
Danzig Danzig is offline
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found this, but keep in mind this was all figured on the bush tax decreases expirig at the end of '10-so the scenarios would be that much worse.

http://www.cbo.gov/ftpdocs/102xx/doc...ter1.4.1.shtml

The Federal Budget Outlook Over the Long Run

Assessing the nation’s fiscal condition requires not only considering the current economic and budgetary circumstances but also analyzing what might happen over the long term if current laws and policies remained in place. Toward that end, the Congressional Budget Office (CBO) has prepared budgetary projections through 2080 under two different sets of assumptions about federal laws and policies. Those projections indicate that, under either set of assumptions, federal debt will continue to grow much faster than the economy over the long run.

Although long-term budget projections are highly uncertain, under any plausible scenario rising costs for health care and the aging of the U.S. population will cause federal spending to increase rapidly. Unless revenues increase just as rapidly, the rise in spending will produce growing budget deficits and accumulating debt. To keep deficits and debt from reaching levels that could cause substantial harm to the economy, policymakers will need to increase revenues significantly as a percentage of gross domestic product (GDP), decrease projected spending sharply, or implement some combination of the two.

and further down:

Returning the Budget to a Sustainable Path

How much would policies have to change to avoid unsustainable increases in government debt? A useful answer comes from looking at the so-called fiscal gap. The gap measures the immediate change in spending or revenues that would be necessary to produce the same debt-to-GDP ratio at the end of a given period as prevailed at the beginning of the period. Under the extended-baseline scenario, the fiscal gap would amount to 2.1 percent of GDP over the next 25 years and 3.2 percent of GDP over the next 75 years. In other words, under that scenario (ignoring the effects of debt on economic growth), an immediate and permanent reduction in spending or an immediate and permanent increase in revenues equal to 3.2 percent of GDP would be needed to create a sustainable fiscal path for the next three-quarters of a century. If the policy change was not immediate, the required percentage would be greater. The fiscal gap is much larger under the alternative fiscal scenario: 5.4 percent of GDP over the next 25 years and 8.1 percent over the next 75 years. (For information about how CBO makes those estimates, see Box 1-1.)


and so now, the change needs to be greater, as the tax cuts were extended. the longer we wait to take our medicine, the sicker we will be. if they don't want to increase those 'revenue enhancements' then the corrolating changes to outlays must be equal to that loss of revenue, else the problem continues to grow. if you have cancer, would you want your doctor to only cure half of it? what good would that do?
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