Deficits under the President's budget are higher than those under the BEA baseline, but lower than those under the adjusted baseline
Feb 16, 2012
SOURCE: Data from the Office of Management and Budget, The Budget of the United States Government, Fiscal Year 2013, February 2012. Compiled by PGPF.
*The BEA baseline generally reflects current law, but does not include adjustments for the provisions in the Budget Control Act of 2011.
The President’s adjusted baseline incorporates the provisions of the Budget Control Act and assumes the extension of several provisions that are scheduled to expire under current law. Those provisions include indexing the Alternative Minimum Tax (AMT) to inflation, extending the 2001 and 2003 tax cuts as well as the estate, gift, and generation-skipping transfer taxes, preventing cuts to Medicare physician reimbursement rates, increasing the maximum Pell Grant Award levels, and budgeting for emergency spending. Relative to this baseline, the President’s budget reduces 10-year deficits by nearly $2 trillion. However, relative to the Office of Management and Budget's Budget Enforcement Act (BEA) baseline, which follows current law (excluding the Budget Control Act), the President’s budget increases deficits by more than $6 trillion over ten years.
This chart appeared as a part of PGPF's analysis of the February 2012 report by the Office of Management and Budget, The Budget of the United States Government, Fiscal Year 2013. To read the full report, click here.
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Peter G. Peterson Foundation Chart Pack:
The PGPF chart pack illustrates that budget-making involves many competing priorities, limited resources, and complex issues. In this set of charts, we aim to frame the financial condition and fiscal outlook of the U.S. government within a broad economic, political, and demographic context. Download (.PDF)